Xstrata Nickel and Canadian auto workers and smelter union miners have reached an agreement that has seen workers pull out of a strike following an expired workplace agreement.

The parties signed a new three-year Collective Agreement, which allows workers a yearly cost of living allowance with a 20-cent hourly wage hike in the third year, and a C$2,500 Continuity Allowance.

The company plans to revive mining activity at the Fraser Mine this month, and the agreement offers a workforce transition agreement that allows the recall of 100 miners to occupy vacant positions.

The transition pact will mitigate any impact on the existing Nickel Rim South workers as this project advances to full production in the second quarter of the year.

Since 13 July, nearly 3,300 miners at the Sudbury operations have been on strike following a break down of negotiations over a labour contract.