Egged has announced a cancellation of Monday's planned strike, following an agreement between the workers' union and the Finance Ministry.
Channel 10 reported that Histadrut labor federation leader Avi Nissenkorn and Finance Ministry Director-General Shai Babad to guarantee drivers' wages.
In the agreement, the Finance Ministry agreed to transfer 150 million NIS ($39.4 million) to guarantee the salaries in the interim, while a more permanent wage deal for the drivers is negotiated.
Egged driver Guy Landsman told Army Radio “today an Egged driver works 12 hours a day in order to make a living, and also needs to work on Friday and Shabbat, but they don’t want to pay us.”
The planned strike was over inadequate working conditions, as well as threats to postpone drivers' salaries and the government's refusal to renew drivers' contracts.
Egged is the largest bus company in Israel, operating intercity and intracity bus routes throughout the country.