Tram strikes planned for Melbourne next week will not go ahead after Yarra Trams and the public transport union reached an in-principle agreement.
Employees will receive a 14 per cent pay rise over four years as well as two separate cash payments totalling three per cent, Yarra Trams said in a statement on Friday evening.
Trauma and family violence leave will be introduced in new enterprise agreements while maternity leave, secondary carer's leave and bereavement leave will be increased.
"We have only maintained or improved conditions in this agreement, giving our employees a better work-life balance," the statement says.
The union had scheduled more industrial action for next week as part of continuing labour disputes but divisional secretary Phil Altieri told AAP it would not be going ahead.
"We're very happy with this arrangement and we're also happy to not be on industrial action any more," he said.
Mr Altieri said Public Transport Minister Jacinta Allan helped the parties reach the agreement through marathon negotiations this week.
"The government, through Jacinta, have been involved in this arrangement over the last couple of days, and I believe they've played a very good role in ultimately reaching this agreement," Mr Altieri said.
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