Hamilton bus drivers say they have accepted a pay deal with their employer Go Bus.
About 40 drivers have been locked out by the company since Saturday, causing some disruption to services in the city.
Workers were seeking a 16% increase in their wages from $13.50 to $16 an hour.
However, Karl Andersen of the National Distribution Union, says workers on Tuesday accepted the company's offer of a 5.6% increase.
Mr Anderson says drivers had no choice but to accept it in order to end the lockout.
The managing director of Go Bus, Calum Haslop, says he is pleased that the dispute has been resolved.
Mr Haslop says he is committed to raising the low wages of drivers in a managed way through future service contracts.
The bus drivers have now resumed work.