Staff at English National Opera (ENO) have agreed a three year pay deal following threats of strike action.
Staff had threatened to stage a strike
The deal includes a 3% pay rise, backdated to August 2005, as well as a slight increase in employer's pension contributions.
Bectu union members had voted to strike over an earlier offer and originally demanded a 5% rise.
Bectu official Willy Donaghy said: "This new deal is a testament to the unity of our members at ENO."
He added: "The offer includes pay increases in real terms for each of the next three years, and against the background of this new-found stability for our members we look forward to a considerable improvement in our industrial relations with the ENO."
ENO has suffered financial and management problems for the past two years.
In November last year Sean Doran stood down as artistic director after two years in the job.
He was followed by chairman Martin Smith who left following calls for his resignation.