The union, which represents 1,800 bus operators, dispatchers, maintenance and clerical workers, reached a three-year deal with management that includes a 9.5 percent raise.
"This agreement protects workers, helps riders, and keep service running." ATU Local 192 President Yvonne Williams said.
Monday, the union had issued a notice that they would go on strike at 12:01 a.m. Wednesday unless progress was made in talks with management.
The agreement still needs to be ratified by union members in a vote later this month.