Part-time binmen in Brighton and Hove have accepted a deal that averts the threat of industrial action.
Refuse collectors and street cleaners in Brighton and Hove recruited by employment agency Catalyst Personnel last night voted to accept a revised package.
Union officials, Brighton and Hove City Council and Catalyst Personnel had to return to talks after the first proposal was rejected on Wednesday.
Unions said they were pleased the dispute was over and said part-time workers on the refuse collection and street-cleaning service would get a small pay increase.
Mark Turner, of the GMB union, said: "They will see a week-by-week increase but they will still be responsible for their own holiday entitlement.
"We are happy now that we have resolved this. We did not want to be in this position."
The EU Working Time Directive gives long-term casual workers the right to four weeks of holiday pay, in the same way as full-time staff.
Some employers have used a loophole, claiming the payments are included in a part-time worker's wages.
Unions condemned the tactic and are taking legal advice to tighten the rules.
Brighton and Hove City Council, which said it had been unhappy about the changes, said it was pleased a deal had been reached.
A spokesman said: "We are obviously very pleased that Catalyst and the GMB have resolved the situation amicably."
Typically there are 50 to 90 part-time workers on the refuse collection and street cleaning service every day, out of a workforce of 285.
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