Around 4,000 workers represented by the United Auto Workers (UAW) have reached an agreement with Volvo Group owned Mack Trucks, Reuters reported, though the temporary agreement must still be ratified.

“The terms of this tentative agreement would deliver significantly increased wages and continue first-class benefits for employees and their families,” said Mack president Stephen Roy.

“At the same time, it would allow the company to successfully compete in the market, and continue making the necessary investments in our people, plants and products.”

According to the UAW, 98% of the truck company’s workers had authorised a strike last month.

Reuters noted, should Mack workers have gone on strike, it could have strained the UAW’s limited strike fund which provides workers US$500 per week.

The company had said last Thursday its bargaining teams had reached tentative agreements but discussions were still ongoing, the news agency added.