Workers at Delphi Diesel Systems in Sudbury, Suffolk, accepted an improved pay offer after threatening strike action this week.
The plant employs 800 workers making car parts for Jaguar.
Unite members were set to strike on Monday after they had voted for action after rejecting an initial pay increase of just 1 percent.
While the workers got some concessions from management, the deal still fell short of what they initially demanded.
They gained a 1.5 percent pay increase and an extra day’s holiday.