Vets Cab drivers have a new four year contract.
Members voted 87% in favour of the deal late Tuesday night, avoiding a midnight strike deadline.
Unifor Local 195 represents the 326 drivers.
Union president John Toth says drivers accepted a number of licensing and rate increases to operate their cabs in exchange for a commitment from the company to have a new state-of-the-art $1-million dispatch system in place by the end of the year.
He says the new dispatch system will make competing with services like Uber much easier.
"There has been public support behind the taxi companies for the past year and a half versus the upstart TNC's and we're hoping that continues and drivers can actually increase ridership and that's why they voted to accept the increased costs versus withdraw their service which would have been devastating the public that relies upon it."
He says the increases will also help the company deal with the upcoming minimum wage hike.
"The company was seeking substantial increases at first. We were able to reach a compromise based on the fact that minimum wage is going up. The company is going to be faced with increased costs in terms of their dispatch service and we understood that. So that increase that the drivers are willing to pay reflects that."
He says the company and the union found a middle ground.
"The company was seeking significant increases with no justification because there's not an increase in business, there's no increase in ridership in which the drivers will be able to make more money to pay those higher rates," explains Toth. "So at the end of the day, we were able to reject most of those significant increases and settle on a modest increase based on the reality of the cost of doing business."
The new deal also includes a number of language improvements, additional holidays and increased life insurance.
The current contract expired in July.