Five hundred striking Metro Vancouver HandyDART workers will start returning to work on Monday after more than two months of picketing.

Tim Johnston, vice-president of the Amalgamated Transit Union's Local 1724, said the union began taking down its picket lines on Thursday morning after the union and employer MVT Canadian Bus agreed to binding arbitration.

"We were in mediation yesterday [Wednesday] with Vince Ready. We came to the resolution that … we were open to binding arbitration, and the company agreed, and so the matter is in Vince Ready's hands right now," said Johnston.

Ready, a veteran mediator in B.C. labour disputes, will accept submissions from both parties starting on Monday. HandyDART service will resume at the same time, with full service and a final deal expected the following week.

Key issues in the negotiations included pension benefits and the treatment of casual employees. Union members had already rejected at least two contract offers.

The HandyDART service provides door-to-door public transit around B.C. for people with mobility problems, but the dispute applies only to union workers in the Metro Vancouver area.

During the strike, HandyDART has only been offering essential services for patients needing renal dialysis and cancer treatments.