A new collective agreement between Dunedin Railways and the Rail and Maritime Transport Union has been unanimously ratified by union members.
The union was able to secure an agreement that will be more lucrative over the two-year period than was initially sought. The agreement also included terms for a third year.
The union announced last Wednesday its 32 members would strike on November 25 — the day a 1258-passenger ship is due in Port Chalmers — if a stalemate on pay negotiations with Dunedin Railways could not be broken.
The union members’ collective agreement with Taieri Gorge Railway Ltd expired in August and negotiations stalled as the union pushed for a 4% pay increase in the first year of a two-year deal and a further 2% in the second year.
Union general secretary Wayne Butson said its members were satisfied with the new terms and the strike was cancelled.
"Our members unanimously ratified the draft collective agreement this morning," he said yesterday.
"This brings negotiations to a satisfactory conclusion and provides for regular wage increases over a three-year term.
"Members will receive an immediate minimum wage increase of 3%, backdated to the expiry of the previous agreement, and two further increases of 3% each next August and in August 2018.
"In addition there are adjustments to some individual members’ rates that go substantially beyond this."
Dunedin Railways spokesman Toby Mann said the company was pleased to reach an agreement with the union.
"The three-year agreement means we have stability looking ahead, which is good for everyone," he said.
"We have had a good relationship with the RMTU over the years and we are confident that we will continue building on that. Dunedin Railways brings a great deal of business to the city of Dunedin and it’s great that we can continue to do that together."
The strike would have resulted in the cancellation of six excursions and the union was open to further strike action.
The company reported a $137,000 profit during the past financial year and recorded $173,000 in profits in 2014-15.
