Via Rail and the Canadian Auto Worker's union have reached an agreement in principle, averting a strike which could have begun Monday.
On Thursday, the union gave the company notice of a 72-hour strike deadline. The two sides had until Sunday at 11:59 p.m. to reach a deal.
"We feel just great about the settlement," said Canadian Auto Workers representative Bob Chernecki, noting the union had been bargaining since January.
The agreement will become official mid-July. Details will be made public after the ratification vote.
"It's tough work and people deserve a fair and equitable wage package and benefit package and we believe we've reached that goal," Chernecki added.
The latest negotiations began on June 21, but the union deemed the company's first set of proposals unacceptable.
Chernecki said the union was unsatisfied with the management's position on seniority provisions, maternity leave and vacation schedules.
Via Rail workers have been without a contract since Dec. 31, 2009.
The CAW represented 2,200 Via Rail employees working in various capacities, including onboard, and in maintenance and administrative functions.
With files from The Canadian Press
