Bus workers have suspended strike action which was to have continued today on some services around Hastings.
The announcement follows a breakthrough in negotiations between union officials and managers.
Transport and General Workers' Union members in Hastings and St Leonards have been locked in a dispute with Stagecoach over pay and conditions.
But industrial action has been called off after weekend talks in Eastbourne between a senior union negotiator and Stagecoach South managing director Andrew Dyer.
A two-year deal was struck including a pay settlement of £6.52 an hour, which has been brought forward from May to now. An agreement has also been reached on sick pay.
The dispute has affected services in Hastings and St Leonards. Stagecoach bosses responded by drafting in workers from across the country.
A ballot of TGWU members will be held on Thursday to decide whether to accept the proposals.
Mike Johnson, the union's regional industrial organiser, said: "I think it's not a terribly bad deal and hopefully the membership will accept it when they are balloted later this week."
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