About 400 workers at Cambus – Stagecoach's Cambridge division – voted for a new pay package which sees increases of between 7.4 and 12.2 per cent over an 18-month period.

Unite said its members – drivers, engineers, cleaners and shunters - based at Cambridge, Fenstanton and Peterborough had voted overwhelmingly to accept the deal.

It also includes a lump sum of between £300 and £500.

Unite general secretary Sharon Graham said: “This is a significant pay deal for our members employed by Cambus.

He said strikes that were due to be held have been suspended and Unite’s members are working normally. Unite says the workers had last had a pay rise in April 2019.

Ms Graham said: “It also puts down a strong marker to other bus company bosses that Unite will fight for decent pay increases that reflect the cost-of-living crisis in the coming 12 months.

“We are determined to defend members’ jobs pay and conditions as the union’s number one priority.”

Unite regional officer Mark Plumb said: “I would like thank our Cambus members for their solidarity during this dispute which greatly contributed to the pay deal we have achieved.

“Unite looks forward working constructively with Cambus management in the future.”

Those workers based at Peterborough will receive at least 12.2 per cent over the 18 months from April 2021 to October 2022 with a £300 lump sum.

For employees at Cambridge and Fenstanton, they will receive a minimum of 7.4 per cent over the same period with a £500 lump sum.

The workers employed by Cambus Ltd had previously rejected a 1.5 per cent pay offer from April 2021 with a further 1.5 per cent from December 2021 for the pay year 2021/22.

Stagecoach confirmed that an agreement has been reached on a pay deal.

Darren Roe, managing director of Stagecoach East, said: “We’re very proud of our team, who do a fantastic job in delivering vital transport connections for our local communities.

“We are pleased to have reached an agreement with our local trade union representatives that represents a good pay deal for our employees.

“And at the same time, it will help to secure the long-term sustainability of the bus network."