The city of Guelph and the union representing Guelph Transit employees have finalized a new contract including a wage increase.

The city announced Monday that a deal has been reached by the two sides.

All full-time and part-time transit workers will receive annual pay increases over the four-year contract, with 1.5 per cent raises in 2018, 1.75 per cent in 2019 and 2020, and 2 per cent in 2021.

Additionally, the city will continue to develop its transit services to meet the growing needs of the community.

The city’s general manager of human resources said the new contract was reached without any disruption to the transit system, unlike in 2014 when service was halted for about two weeks after the city locked out the employees.

The new agreement will start Jan. 1, 2018.