Journalists in the NUJ union at the The Independent and Independent On Sunday chapels have voted overwhelmingly in favour of accepting a much improved offer from management on pay and conditions.
The agreement was reached after several hours of negotiation and a long campaign by union members.
The threat of strike action on budget day and the resolve and determination of the members had a huge impact on the talks.
The agreement provides for a 2.5 percent increase for all staff, a 5 percent increase on minimum rates on all pay bands and a new training agreement.
It also provides a guarantee of no compulsory redundancies until at least April 2007 and payments to all staff employed since the launch of the compact daily of between £200 and £500.
The union came out of the campaign stronger with many new members.