The CAW and National Auto Radiator in Windsor have come to terms on a new collective bargaining agreement.
The deal ends a lockout of workers. The lockout began last Thursday.
While the company will resume paying employees and covering retiree benefits, it has confirmed its plans to close the factory.
Gerry Farnham, of the CAW, said the company will not ship or manufacture any products from the plant over the next 30 days.
"Unfortunately, the fate of this facility will not change. However, it will give us time to put together a closure agreement, and hopefully, we'll reach that within the 30-day period and then go from there," he said.
The union said it will not picket or strike.