NEW YORK (AP) — In a significant move to keep the show going, Broadway’s musicians and commercial producers have reached a preliminary labor agreement, effectively avoiding a strike that threatened to halt nearly 24 musical productions.

The American Federation of Musicians Local 802, which represents a workforce of 1,200 musicians, had issued a strike warning should negotiations fail to produce a new contract by Thursday morning. This came after mediation efforts took place on Wednesday.

In the early hours of Thursday, the union announced a provisional agreement had been achieved, promising wage hikes and increased contributions to the health fund.

“This three-year contract ensures substantial wage and health benefit improvements, safeguarding crucial healthcare access for our musicians while upholding strong contractual protections. These enable musicians to sustain a stable career on Broadway,” stated AFM Local 802 President Bob Suttmann.

The proposed agreement will now be presented to the union members for approval.

The potential strike could have silenced 23 productions, including renowned hits such as “Hamilton” and “The Lion King,” as well as new arrivals like “Queen of Versailles” and “Chess,” which are still under preview. Notably, plays would not have been directly affected.

It was the second Broadway labor deal in less than a week. Labor tensions had already seemed cool after Actors’ Equity Association — which represents over 51,000 members, including singers, actors, dancers and stage managers — announced a new three-year agreement with producers over the weekend.

Members of both unions had been working under expired contracts. The musicians’ contract expired on Aug. 31, and the Equity contract expired Sept. 28.

The health of Broadway — once very much in doubt due to the coronavirus pandemic that shut down theaters for some 18 months — is now very good, at least in terms of box office. It has been a long road back from the days when theaters were shuttered and the future looked bleak, but the 2024-2025 season took in $1.9 billion — the highest-grossing season in recorded history, overtaking the pre-pandemic previous high of $1.8 billion during the 2018-2019 season.

The unions pointed to the financial health of Broadway to argue that producers could afford to up pay and benefits for musicians and actors. Producers, represented by The Broadway League, had countered that the restored health of Broadway could be endangered by potential ticket price increases to accommodate the demands.

The most recent major strike on Broadway was in late 2007, when a 19-day walkout by stagehands dimmed the lights on more than two dozen shows and cost producers and the city millions of dollars in lost revenue.

On Wednesday, three U.S. senators from New York and New Jersey — Democrats Kirsten Gillibrand, Cory Booker and Andy Kim — wrote to both sides, urging them to “participate in good faith negotiations and continued communication.” The senators noted that Broadway supports nearly 100,000 jobs and is “an essential cornerstone in the economic well-being of surrounding businesses and sectors, including hospitality, retail and transportation.”