Jaguar Land Rover has reached a deal with union leaders over pensions and pay after the company submitted an offer that both sides could finally agree upon.

Union members had previously rejected an earlier offer from JLR in October, with 95 percent of the workforce voting against the original terms and conditions. Following this, union members discussed the possibility of strike action.

It is understood that JLR initially offered a 3 percent pay rise each year for the next three years, along with a one-year bonus — a deal that union representatives rejected.

The terms of the new agreement have increased to a 4.5 percent pay rise in the first year of a two-year deal, along with an additional £825 bonus per employee.

The new deal will benefit approximately 15,000 JLR workers out of the company’s 26,000-strong workforce. In a joint statement, both parties said:

“A revised offer has been made by the company that will be unanimously recommended by Unite to its members.”

Jaguar and Land Rover’s growth has accelerated over the past four years under parent company Tata. The brand is surging ahead and now has the confidence to compete with premium automakers such as BMW and Audi.