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The improved offer came as Unite union prepared to ballot members for industrial action.
This comes after the union announced that it was preparing to ballot members for industrial action.
The agreement with bus operator Go-Ahead will benefit workers who operate routes across south London, and makes its drivers among the best paid in London.
Go-Ahead initially offered a final offer of 9% but this was rejected by members.
But when Unite announced that it was preparing to ballot members for industrial action, the company made an improved offer of 10.5% which members accepted.
Those covered by the latest agreement work for Go-Ahead London Central, Go-Ahead General and Metrobus based in:
- Bexleyheath
- Camberwell
- Croydon
- Merton
- Morden Wharf
- New Cross
- Orpington
- Peckham
- Putney
- Stockwell
- Sutton
- Waterloo
- Waterside Way
Unite general secretary Sharon Graham said: “This is an important win for bus workers at Go-Ahead. By being organised and fully prepared to face down management they have secured this pay increase.
“Unite’s commitment to prioritising the jobs, pay and conditions of its members is paying dividends and the pay deal at Go-Ahead is a clear example of the success of this strategy.”
The union is still negotiating pay deals or balloting members employed by other bus operators in London.
A Go-Ahead London spokesperson said: “We are pleased to have recently concluded a pay deal for most of our drivers and engineers.
“The agreement reflects the current cost of living and will make a real difference to our 6,000 frontline colleagues.”
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