The state's largest abattoir, Harvey Beef, and the Australian Meat Industry Employees Union have agreed to jointly recommend a new union collective agreement to Harvey Beef's processing staff.
Under the terms of the two-year agreement, Harvey Beef will gain the wage cost parity with its competitors that the company requires to increase its competitiveness.
Harvey Beef general manager Dean Goode said the agreement will enable the company to regain the cost competitiveness it must have for its long-term sustainability.
"This has been a difficult period for our workforce, the company and the union, and we acknowledge the impact it has had on our employees, former employees and their families," he said.
"However, change is required so the business can regain competitiveness and therefore cement its short, medium and longer sustainability.
"Harvey Beef can be a great business. It has a great product and is now moving towards a lower cost base which will ensure it will continue to process Western Australian beef well into the future."
About 160 workers were laid off a fortnight ago, after rejecting a similar pay deal earlier this month which proposed a pay cut of up to 20 per cent for a third of the Harvey Beef workforce, for three years.
The union collective agreement will be voted on by the Harvey Beef employees next Wednesday.
