Vauxhall workers have accepted a three-year pay deal worth around 8.6%.
The company says hourly-paid workers will receive a 3% pay rise, backdated to September.
This will be followed by increases of 0.5% above the rate of inflation in each of the next two years.
Kevin Wale, managing director of General Motors' UK offshoot, says: "This is a good day for Vauxhall. Working in partnership with the trade unions, we have achieved a simple package of measures that will allow the company to plan for the future.
"This agreement will allow our workforce to prosper and to continue to have one of the most competitive packages in the industry."
Mr Wale adds: "Along with our strong product line-up and manufacturing restructuring, it will result in a stronger Vauxhall Motors. It will also help us in our efforts to return to profitability, which is a must for our company."
The deal, covering around 10,000 staff, will increase the weekly pay of a Vauxhall production worker by £10 to £434.
The Transport and General Workers' Union says employees will be able to lease a new Vauxhall at preferential rates - around £140 a month - as part of the deal.
The union's national officer Tony Woodley says: "This is unique for the industry in that, for the first time, employees who have served the industry well will receive a decent car for the rest of their lives.
"It will be welcomed within the industry and is great news for workers and their families. The T&G will be looking to encourage this type of arrangement across the industry."