Brighton and Hove binmen have called off their threat to go on strike.
At a meeting of GMB union members, the waste collectors voted to suspend a ballot which could have led to industrial action.
The decision follows talks held last Thursday between Sita management and GMB representatives which were overseen by the arbitration service ACAS.
GMB organiser Gary Smith said: "The discussions have not been easy.
"A major concern for the union was the impact industrial action would have on the general public. We did not want to cause any more problems for the long-suffering people of the town."
Mr Smith said the union had been keen to find a compromise with Sita bosses.
A deal has been reached about a £250 bonus promised by management in June as an incentive to implement changes to collection days.
All workers will receive £100 now and the remainder will go to those who help complete service targets by mid-January.
Mr Smith said future disruptions to the service, which has been plagued with problems since the changes, would be prevented by 'effective management'.
He said: "We have emphasised to Sita that the ball is now firmly in their court. Let us hope the previous difficult 12 months can be put behind us.
"We are committed to working together with all parties to raise morale amongst the workforce and improve service delivery."
The binmen threatened industrial action after comments made earlier this month by Sita's managing director Ian Goodfellow.
He blamed Brighton and Hove's refuse collection problems on binmen missing out streets so they could knock off on time.
A Sita spokeswoman said: "We are pleased to have reached an agreement and look forward to working with all the parties."
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