Hundreds of Princess Yachts workers in Plymouth secured a 6.5% pay rise after an industrial action ballot.
Around 1,200 workers are set to benefit from the deal, which follows pay talks where the company originally offered no increase.
After staff voted in favour of strike action on 6th August, management put forward the new offer, which workers accepted.
Those on the lowest pay will see their wages go up by between £2,000 and £3,000 a year.
Sharon Graham, general secretary at Unite, said: “This is a huge victory for the Princess Yachts workers, who by sticking together in their union and voting for strike action forced the company back to the table.
“This is yet another example of how Unite’s absolute dedication to improving jobs, pay and condition is paying dividends for our members.”
No strike took place as the pay deal was reached after negotiations.
Mark Richards, regional officer at Unite, said: “This deal could not have been achieved without the hard work and dedication of Unite’s workplace representatives.
“This goes to show that those wanting better wages and working lives should join Unite and organise their colleagues to join too.”
The Workplace Journal reached out to Princess Yachts for a comment.