Israel's main public sector workers union called off a general strike planned for Wednesday after the government pledged to improve safety around construction sites that have seen a spate of worker deaths from falls.
Some 40 workers have died on building sites so far in 2018 and 200 others have been seriously injured.
The new measures agreed in negotiations on Tuesday included adopting European certification standards for scaffolding, instituting the use of safety netting and increasing the number of safety inspectors, both sides said.
"This is a historic development that will spare many fatal work accidents and prevent the injury or death of dozens of workers a year," Histadrut labor federation Chairman Avi Nissankoren said in a statement.
The strike would have shut down airports, banks and all government offices in Israel indefinitely. According to the Histadrut, Israeli polling firm Smith had found 66% of Israelis supported any strike action.
"I am happy that we reached agreements that prevented a strike which would have harmed millions of Israelis who want to go to work and send their children to kindergarten and school," Finance Minister Moshe Kahlon said.