HARRISBURG, Pa. (AP) - The union representing faculty at Pennsylvania's 14 public universities is reporting progress on contract talks.

The union says it reached tentative agreements on compensation with state higher education officials.

However, the Association of Pennsylvania State College and University Faculties said Monday that "significant divides" remain on issues including online education, health care and class size.

Pennsylvania State System of Higher Education officials are looking to save money. They say health care costs alone will increase by $7.5 million next year.

Union members have been working without a contract for 18 months. They have authorized their leadership to call a strike.

The parties will meet again on Wednesday.

The universities serve about 115,000 students.