Five days of industrial action came to an end in Hamilton tonight with bus drivers and their employer, Go Bus, reaching a pay settlement.
The dispute followed failed negotiations last week between the National Distribution Union (NDU) representing the drivers and the company.
It escalated to strike action being taken by the drivers and the company responding by imposing a lockout.
Go Bus managing director Calum Haslop said tonight the company was pleased the matter had been brought to a close.
Mr Heslop said the union had effectively agreed to an offer tabled a week ago.
"And while we are pleased to have this matter settled it is slightly disappointing to have had to go through this industrial action."
The NDU said drivers had been getting an "abysmal" $13.50 an hour.
Union secretary Karl Andersen said drivers had accepted a 5.6 percent increase offer - a figure well below the initial claim.
Mr Haslop said the agreement equated to a lift in pay of 51 percent over the past five years and the company would continue to lift the pay of its drivers in the long-term -- over and above the rate of inflation.
"But it needs to be done in a managed, stepped manner by negotiating them into future service contracts," he said.
The lockout, which was lifted after today's negotiations, has caused some disruption to off-peak bus services in the city.
Mr Haslop said non-union drivers had stepped up to help keep peak-hour services running.
