Winnipeg Transit service is expected to return to normal soon, after the union representing drivers reached a contract agreement with the City of Winnipeg.

There may be some minor scheduling issues with respect to Thursday's transit service, but regular schedules will resume shortly, city officials said Thursday.

The Amalgamated Transit Union Local 1505, which represents about 1,000 bus drivers and 250 maintenance workers in Winnipeg, had been refusing to work overtime since July 25 in a contract dispute with the city.

Without drivers working overtime, between 15 and 20 buses were not running each day, affecting mostly morning rush-hour service, transit officials said.

All contract matters were resolved by mutual consent, except for provisions dealing with Sunday shifts for drivers. That issue will be referred to arbitration, city officials said Thursday.

"It's effectively the same offer — the difference being the main issue of contention, [which] was the Sunday shifting," said transit director Dave Wardrop.

The new agreement will see drivers and maintenance workers receive general salary increases of 2.0 per cent this year, 2.2 per cent next year and 3.0 per cent in 2010.

The contract will not go to a vote, said union spokesman Keith Scott. Union leadership felt this was the best deal possible, and the alternative would have been a full-fledged walkout, he said.

In that case, workers would likely have eventually been ordered back to work by legislation, Scott said.