Refuse workers in Sandwell are set to receive substantial back pay following intervention by trade union Unite.
The 40 outsourced workers, employed by employment agency Templink for the council's outsourced contract, were being paid less than permanent staff.
The workers will now receive back pay of between £2,000 and £7,000 and will also receive a substantial increase in their hourly rate.
Unite regional officer, Simon O'Keeffe, said: 'The agency workers undertake exactly the same roles as permanent staff and they deserve to receive the same rates of pay.
'This victory demonstrates what can be achieved if agency workers get organised – securing a level playing field and winning fair pay can be obtained.'