A possible strike was called off hours before the midnight deadline that would have seen 1,800 drivers, mechanics, and AC Transit dispatchers walk off the job in labor disputes. The compromise calls for a 9.5 percent pay increase over three years, a compromise from the union's desired 9.75 percent.

Other elements of the contract deal include workers sharing a portion of health care premiums costs. According to the new agreement, employees will pay $70 a month in the first year of the deal, $140 a month in the second and $180 in the third. The current base salary on an AC Transit bus driver is $55,000, but total compensation, including benefits, amounts to about $103,000 a year.

Negotiators, currently sparring over another possible BART strike, might look to their Alameda County transit neighbors for inspiration. AC Transit General Manager David Armijo emphasized the compromise inherent in the deal, saying "This was a long and often intense negotiation, and there are no winners or losers in this outcome. We are happy we were able to get through the process without any disruption in service."

Previously: Now AC Transit Workers May Strike Wednesday

[SF Gate]