UPS says it won't fire 250 workers for participating in a walkout.
Both the company and the union, Local 804, say they agreed to reduce the terminations to a 10-day suspension, while Local 804 has agreed to pay monetary damages to UPS.
The union says they will work to improve labor-management relations at the company and to better handle disciplinary disputes.
UPS says they settled in order to return to normal operations at the site in Maspeth.
In February, 250 drivers participated in a work stoppage, but the company said they were not contractually permitted to do so, and the union agreed it was illegal.
However, the move to terminate them led to a National Labor Relations Board investigation into UPS for unfair labor practices.
Once the board completes its investigation, it will decide whether to issue a complaint against the company.