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“The 250 UPS employees involved in the walkout who were terminated for their actions will have their terminations reduced to a two week suspension without pay for each participant,” UPS spokesman Steve Gaut told Business Insider in an email. “UPS has chosen to settle the matter in order to return to normal operations at the site.”

As part of the agreement, the local branch of the union representing the workers, Teamsters Local 804, will compensate UPS for damages associated with the Feb. 26 walkout, Gaut said.

Union officials also acknowledged in the agreement that the strike was “illegal and unauthorized and will undertake other actions within the bargaining unit to correct the situation,” he said.

The union disputes that claim.

Teamsters General President Jim Hoffa and General Secretary-Treasurer Ken Hall announced today that Hall and International Vice President Sean O’Brien met with Teamsters at the UPS Maspeth facility last night. Today, Hall and O’Brien met with Local 804 officials and UPS management to resolve the situation. The parties have come to a settlement regarding the termination of 250 Local 804 members that occurred after a job action that took place in February.

Louisville, known as UPS’s Worldport, serves as the main distribution hub for all of the company’s air package delivery. The facility is immensely important to UPS’s business, but Local 89, the union in Louisville, has already voted down its contract twice. The union has now voted a third time, and the votes are to be tallied by April 10. If the contract is voted down a third time, which Local 89 has recommended its members to do, the union can then move to vote for a strike.