It will be bus service as usual Monday in York Region.
Both sides reached a tentative agreement just before the midnight deadline.
About 28,000 commuters in the region north of Toronto were facing a strike on some routes.
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The job action would have affected riders in Vaughan, along with some bus routes in Richmond Hill, Newmarket, Aurora, Markham and King Township.
Earlier, ATU Local 113 president Bob Kinnear said key issues are wages and sick days.