Management and union officials at Fiat, Italy's auto and truck producer, said they agreed on a contract that affects more than 80,000 workers.
The deal includes a $52 per month gross wage increase for 2013 and a productivity bonus that will jump from $134 to $156 per month, ANSA reported Friday.
The agreement includes automakers and Fiat Industrial workers, who make trucks and tractors.
ANSA said "moderate" unions agreed to the deal but the negotiations did not include FIOM, the metalworkers' division of CGIL, the country's largest trade union.
FIOM and Fiat are involved in a prolonged dispute over the company's attempt to create more flexible work practices that the union says violate its rights, ANSA said.