Vic govt welcomes tram deal with unions

The Victorian government has welcomed the end of industrial action that threatened to leave tram users stranded.

Strikes planned for Melbourne next week will not go ahead after Yarra Trams and the public transport union reached an in-principle agreement.

Employees will receive a 14 per cent pay rise over four years as well as two separate cash payments totalling three per cent, Yarra Trams said in a statement on Friday.

Trauma and family violence leave will be introduced in new enterprise agreements while maternity leave, secondary carer's leave and bereavement leave will be increased.

Small Business Minister Philip Dalidakis welcomed the end of the dispute, after two tram driver strikes in recent weeks.

"The idea that commuters were being affected was not one that this government supported," he told reporters on Saturday.

Melbourne was also hit by a train driver strike, in the form of two stoppages, earlier this month.

Mr Dalidakis said Public Transport Minister Jacinta Allan, who helped negotiate the tram agreement, was also working hard to minimise any potential further impact on the city's train network.