Buses will be back on Auckland roads tomorrow after seven days of disrupted service.
NZ Bus has agreed to suspend the lock out of staff and the union has agreed to suspend industrial action.
"This afternoon the unions have contacted us and as a result both parties have mutually suspended
industrial action so that buses can be back on the road from tomorrow," NZ Bus General Manager Zane Fulljames said.
The agreement means a week of disruption for commuters will end for now.
This morning bus drivers met to consider an Employment Relations Authority recommendation, the details of which have not been revealed.
But about 500 bus drivers passed a resolution to suspend their work-to-rule notice if Infratil-owned NZ Bus ended their lock-out.
Yesterday the company said if bus drivers ended their work-to-rule notice by 1.30pm today, it would end the lock-out.
However the meeting went until 1.40pm and union spokesman Karl Andersen was earlier waiting for the company to formally accept the drivers' resolution.
It is also understood that the company made a revised offer to the 875 drivers and cleaners involved in the dispute. The offer was based on the secret recommendation from the ERA.
About 500 drivers and cleaners turned up to this morning's meeting and the proposal was rejected by 95 per cent of voters.
The exact details of the revised offer are not known.
Mr Andersen acknowledged the recommendation as a good basis to resume bargaining with NZ Bus.
Mr Fulljames said "it was positive" that both parties had agreed to return to facilitation led by the Employment Relations Authority tomorrow.
