LGS ground handling employees returned to work at 2.50 pm after walking off the job at 12.35 in protest at the dismissal of colleagues.
Details of the agreement have not yet been made public. However, LGS ground handling are back at work, both in loading luggage and at check in, Philenews reported.
Their work stoppage did not lead to serious problems, though there was a short delay in the departure of four airplanes that had been on the tarmac waiting for luggage to be loaded.
LGS ground handling employees had initially said they would strike indefinitely until colleagues are reinstated.
Four flights, all by UK airlines which are handled by LGS and were scheduled in the next couple of hours, were affected.
Company officials and trade union employees had rushed to the airport to resolve the crisis.