Unionized workers at CP, Canada's No. 2 carrier, voted earlier this month to give their union a strike mandate in case talks fail, with a deadline of Feb. 8.
The strike was averted after the parties reached a tentative agreement on Feb. 5 after months of negotiations.
The new agreement, which covers CP's mechanical services employees in Canada, is valid till the end of 2014, the company said in a statement. The earlier contract expired on December 31.
The deal was approved by 82 percent of CAW members, the union, which represents 2,100 mechanical services workers at CP, said in a separate statement.
The new agreement includes increases in wages, benefits and retirement incentives, CAW said.
The CAW and Canadian National Railway Co , Canada's biggest railroad, also reached a tentative contract agreement on Jan. 24, averting a strike. (Reuters)
