Almost a thousand easyJet ground staff and baggage handlers at Gatwick airport employed by DHL have negotiated a 7.5% pay rise over two years, said their union Unite.
The workers will also get a bonus of more than £500 a year and an increase in overtime payments, including double time for working on bank holidays.
DHL’s sick pay policy has also been markedly improved, said the unin.
The deal means that a typical worker would be in line for an increase of over £2,000 in the first year of the new pay deal, including their bonus.
Unite regional officer Jamie Major said: "Baggage handlers and ground staff employed by DHL have negotiated a significant boost in pay well above the rate of inflation. During the pay talks Unite and DHL worked constructively to develop a transparent pay strategy which is fair and gives workers the opportunity to progress.
"Unite’s organising strategy has meant that hundreds of new members joined the union which in turn gave Unite more influence during negotiations."
