Rolls-Royce workers in Rotherham have been offered a pay rise of at least 17 per cent over three years.
The pay deal, which is due to be signed today with the union Unite, will benefit around 120 employees.
Unite said the deal one of the largest agree by Rolls-Royce over recent years.
The union said that the deal was a recognition that the pay rates were among the lowest across the Rolls-Royce group, resulting in workers at the South Yorkshire site, which makes single crystal turbine blades, leaving for better jobs
Unite's regional officer, Doug Patterson, said: “While small in number in terms of the workforce, it is one of the largest deals Rolls Royce has agreed in recent years.
“It has come about because the company finally accepted what Unite had been saying for some time that paying the lowest rates in the group was contributing significantly to the high rate of attrition.
"We regard this pay deal, following tough negotiations, as a success in these challenging economic times and it demonstrates the strong value of union membership.
“What individuals will receive depends on whether they are ‘shop floor’ or ‘professional’, but we estimate that for most employees that it will be a minimum of 17 per cent over three years.”
Rolls-Royce opened its £110 million Advanced Blade Casting Facility at the Advanced Manufacturing Park, Waverley, in 2015.