Updated: Thu Jul. 31 2008 13:18:35

ctvwinnipeg.ca

Winnipeg bus drivers and the city of Winnipeg dodged a strike Thursday.

The city and the Amalgamated Transit Union have finally reached an agreement.

The drivers had been without a contract since January.

The deal includes a salary increase of 2.0 percent this year, 2.2 percent next year, and 3.0 percent in 2010.

Drivers had been taking job action by refusing to work overtime. That was causing a bus shortage during peak commuting hours.

The city says regular bus routes and schedules should be back to normal Friday.

There is still one outstanding issue.  Drivers want to work fewer hours on Sundays -- which has traditionally been a reduced work day. That issue has been referred to an arbitrator.