About 3,000 London bus drivers and engineers have secured a 10.5% pay rise, Unite says.
It comes after the union announced it was preparing to ballot members for industrial action.
The agreement with bus operator Go-Ahead will benefit workers who operate routes across south London, and makes its drivers among the best paid in London.
The union says the deal follows intensive negotiations.
Go-Ahead initially offered a final offer of 9% but this was rejected by members, Unite says, adding management then made another offer of 10.5%, which members accepted.
The company is the largest Transport for London bus operator in London, running 2,300 buses on a quarter of all routes in the capital.
Those covered by the latest agreement work for Go-Ahead London Central, Go-Ahead General and Metrobus based in:
- Morden Wharfe
- New Cross
- Waterside Way
Unite’s general secretary Sharon Graham said it waSs “an important win” for workers, adding they were “fully prepared to face down management”.
She said: “Unite’s commitment to prioritising the jobs, pay and conditions of its members is paying dividends and the pay deal at Go-Ahead is a clear example of the success of this strategy.”
The union is still negotiating pay deals or balloting members employed by other bus operators in London.
A Go-Ahead London spokesperson said: “We are pleased to have recently concluded a pay deal for most of our drivers and engineers.
“The agreement reflects the current cost of living and will make a real difference to our 6,000 frontline colleagues.”
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