Union Amicus has suspended planned industrial action at Peugeot following last-minute talks.
Amicus said it called off the strike after Peugeot promised to improve bonus payments and proposals that it would make increased employee pension scheme contributions.
Duncan Simpson, Amicus national secretary automotive, said: "At last common sense has prevailed. Now our members will be given the opportunity of deciding if the company's offer is acceptable.
"If they reject the offer, then and only then will industrial action be continued."