The bargaining committee of the United Auto Workers union voted to approve a tentative agreement with General Motors just minutes before the union's deadline for a strike Sunday.
"Your UAW-GM Bargaining Committee has secured significant gains and job security protections in a proposed Tentative Agreement with GM," the union said late Sunday.
No details of the four-year deal were made public, but the terms are believed be similar to those the UAW agreed to with Fiat Chrysler last week.
GM and the UAW had been in talks since July on the union's demand to shorten the service time required for workers to reach top pay to four years from eight.
The union had said all 52,700 GM members were prepared to strike, including those at the automaker's Fort Wayne, Indiana plant, which makes the pickup trucks that drive much of GM's profits.
Reuters reported that the deal was approved at 11:43 p.m. ET — just 17 minutes before the deadline.