A dispute at Darcast Crankshafts in Birmingham has ended after workers secured a pay rise and changes to their terms and conditions, union Unite said.
The union has around 70 members at the factory which uses a metal foundry to produce crankshafts for major automakers, and said staff agreed to a backdated 2.75% pay rise for 2019 as well as a further 2.75% for 2020.
Darcast workers will also receive an improved leave of absence policy under the deal and agency staff will be offered permanent contracts.
The deal also contains an agreement to re-evaluate the firm's bonus system and consider incorporating bonuses into workers' regular wages.
Unite regional officer Melvyn Palmer said: "This is an excellent deal for our members, and it was their determination in standing firm that was key to achieving it.
"It goes to show the power in collective action and the real benefits being in a union can bring.
"Following the acceptance of this deal by the workforce, Unite looks forward to working productively with Darcast in the future."