A three-year contract will see 143 Red Deer Transit employees receive a three per cent pay increase over the next three years.
City council ratified the collective agreement involving the Amalgamated Transit Union on Monday. Union members voted in favour of it on July 29.
The two parties met for 13 days of bargaining.
The deal, effective Jan. 1, 2011, to Dec. 31, 2013, will increase wage rates by three per cent as of January 2011, and again in 2012 and 2013.
Members include bus drivers, action bus operators, dispatchers and other transit service employees.
One current hourly pay of $25.18 would increase to $25.94 in 2011, $26.71 in 2012 and $27.52 in 2013.
“Negotiations proceeded well and both parties are satisfied that the agreement meets current and future needs,” said human resources manager Marge Wray.
The long-term contract will maintain the relationship that has been built between the city and the union, she added.