Unifor Local 444 and Owen Sound Transportation have reached a tentative agreement covering workers with the Pelee Island Ferry service.
The deal was reached last Friday after the union said on social media that was lifting a strike deadline of midnight Thursday, when it announced it was making significant progress.
The rescinding of the strike notice was relief to deputy mayor Dave Dawson.
"A strike would be devastating for the community, not only the businesses and the residents, but this being the first big weekend of summer, it's for the tourists and the people who are planning to enjoy Pelee," said Dawson.
A post on the Township of Pelee Facebook page stated wages are an issue in the negotiations, with ferry operators calling for "equal pay for equal work."
The union reports it will announce more details of the agreement and ratification dates to its members in coming days.