Upper Darby Township has reached an agreement on a three-year contract with its municipal workers, the township said Wednesday.

The union had voted earlier this week to go on strike at the end of the year if a new contract wasn’t reached.

Officials announced Wednesday the administration and the Transport Workers Union of America (TWU) Local 234 have successfully negotiated extending the current contract by three years, with employees now contributing more toward health benefits.

The previous contract was set to expire Dec. 31, and will now run through 2027.

Under the terms of the new agreement, TWU workers will receive a wage increase along with other compensatory benefits. In exchange, union members will contribute more toward their health benefits compared to the previous deal.

“This agreement reflects fair wages and benefits and job security to our valued employees and also improves the township’s fiscal position in the near term, while also providing long-term relief for taxpayers related to post-retirement benefits,” the township said in a press release.

“The negotiations were very productive, and I appreciate the earnest effort from both parties in balancing the needs of our employees with those of the taxpayers,” said Upper Darby Township Chief Administrative Officer Crandall Jones.