Social workers at Derby Council have called off industrial action and accepted a one-off payment and car pooling scheme instead of a monthly car allowance.
Unison members voted in May to take industrial action after the council announced it was changing its travel allowances and mileage rates to save money and cut carbon emissions.
An estimated 400 workers, including at least 200 social care workers, refused to use their cars for any work-related purpose from 8 June.
The dispute ended last week after the council reached a deal with Unison, through which it agreed to pilot a car-pooling system and review its travel policy.
In the meantime, the council will go ahead with proposals to take away the monthly allowance payments of just under £100 and replace them with a flat rate of 40p a mile for essential users.
Essential users will also receive a one-off compensation payment of £1,200 and casual users will receive £120.
Charlie Carruth, regional organiser for Unison, said the deal was “more positive” than he had hoped for, although he criticised the council’s handling of the dispute.
“There were threats of dismissal and sanctions if [staff] took industrial action,” he said, and employees had been “bullied” into signing a compromise agreement.
But he added: “We have to move on now, because there are bigger challenges around the corner.”
Harvey Jennings, leader of Derby Council, said: “We are pleased that this has now been decided and feel happy that the agreement best meets the needs of the car users and the council.
“We are facing hard economic times and it is essential that savings are made to secure the council as a whole.”