The settlement comes after four weeks of industrial action which saw the country’s ratings droping and car manufacturing companies bleeding due to halted operations.
(READ MORE: Numsa strike hits hard on Ford SA)
While addressing the media, the general secretary of the National Union of Metalworkers of South Africa’s (Numsa), Irvin Jim, said the settlement was evidence of victory by the working class.
(WATCH VIDEO: Strike is not over: Numsa)
“We are pleased to inform the public and the country at large that the latest offer is a product of sweat and bitter struggles by our toiling workers for a living wage,” Jim said.
“The settlement offer has been overwhelmingly and unanimously accepted by our members,” added Numsa.
The 10 per cent wage agreement will see the lowest paid workers’ earnings rising from 30.61 rand an hour to 33.67 rand per hour.
Jim said the department of labour would be urged to gazette the agreement to ensure all parties abide by the settlement.
He conceded that the engineering sector strike was detrimental to the economy welcoming the acceptance by workers to return to work from 29 July 2014.
(READ MORE: S.Africa's Numsa union turns down 10% offer)
Among others, the union said it had managed to make some inroads with regards to terms and conditions of employment to its members engaged by labour brokers.
Parties have also agreed to allow shop stewards to attend union and industry matters as well as creating opportunities for training to Numsa members.
(WATCH VIDEO: Numsa to clarify its position)
Earlier in the day there were reports of a company with workers affiliated to the union having dismissed about 600 workers for participating in an unprotected strike.