Lantau bus drivers yesterday agreed to a new pay deal with management, ending their threat of industrial action.
New Lantao Bus Company Union vice-chairman Ma Siu-but said a settlement was reached following talks with the company.
'We are not going to consider industrial action for the time being as we have reached an agreement of mutual understanding with our boss,' he said.
The bus firm will close next month, with sister company Trade Travel (Hong Kong) taking over.
The dispute rose because 100 staff were told on New Year's Day they would be dismissed and then re-employed by Trade Travel, with pay cuts of up to 14 per cent and longer working hours.
They also would have to agree that the operator would have complete control over changes to working arrangements and service regulations.