Union calls off tram strike after agreement reached with Yarra Trams

Yarra Trams has announced an end to the tram strikes which have plagued Melbourne in recent weeks after an in-principle agreement was reached with the Rail, Tram and Bus Union.

Employees will receive a 14 percent wage increase over the next four years, plus two bonus payments totalling three percent.

Yarra Trams released a statement this evening, and said the first increase will be backdated to July 1.

"The agreement includes the introduction of trauma leave and family violence leave, as well as increased maternity and secondary carer's leave, and bereavement leave," the statement read.

"The agreement allows Yarra Trams to continue offering a safe and reliable service for our customers, and build upon the improvements in safety, punctuality and customer service that we have achieved in recent years.

"We acknowledge the constructive role taken by the Victorian Government in helping to facilitate this agreement between the parties."

As a result, the industrial action planned for next week has been cancelled.