Unifor Local 103 representing workers at Ontario Northland have reached a tentative agreement with the crown corporation.
The news comes after the union expressed concern over a possible strike on Friday as talks had stalled.
Last week Union members voted an overwhelming 96.3 per cent in support of strike action.
"Entering negotiations, we had one goal in mind: to negotiate an agreement that shows the true value of our members, and we believe this tentative agreement does exactly that," said Jeremy Rodgers, President of Unifor Local 103 in a Sunday morning release.
"We would not have been able to negotiate this agreement without the solidarity and support of our membership."
The union bargaining committee says it will be unanimously recommending acceptance of this tentative agreement.
Details of the agreement will not be released until the agreement is presented to members for ratification which could happen as early as Tuesday.
See related: ONR shop workers take strike vote
Unifor represents more than 350 unionized employees at Ontario Northland working in clerical, mechanics, on-board service, stores, and hotel staff at Cochrane Station Inn and shops at various locations throughout Northern Ontario.
Ontario Northland provides bus service to and from Sault Ste. Marie, with the main depot at 503 Trunk Road.
Unifor is Canada's largest union in the private sector, representing 315,000 workers in every major area of the economy.