Union Unite is to recommend to its members a settlement with DHL and four companies providing the operator with agency staff on its contract with Jaguar Land Rover.
DHL, alongside staffing firms NAC, Staffline and Milestone had been in negotiations with Unite over terms of pay for permanent and agency staff
DHL employees at plants in Castle Bromwich, Solihull and Hams Hall, had voted for industrial action back in July over pay.
Unite executive officer, Tony Woodley said: "We are delighted that after a year of tough negotiations, we now have a settlement that Unite can recommend to its members.
He described it as a “significant deal”, which would give “equality of pay” across the board to employees working for the four companies providing staff to Jaguar Land Rover.
He said that it would also mean that more than 600 agency workers will be made permanent with DHL.
"Unite’s joint negotiating committee is unanimously recommending the settlement to the members who will vote in the next two weeks," Woodley said.
The terms of the deal will remain confidential until union members have had the chance to look at them.
DHL was not available for comment