Last month, New York City health officials declared an emergency because uncollected garbage was piling up at the 320-acre Co-Op City complex.
The deal approved by members of the Service Employees International Union includes a wage increase of 5.6 percent over four years, as well as full, employer-paid family health care coverage and pension benefits.
The board of RiverBay Corp. voted Wednesday night to approve the settlement.
Both sides have said the agreement ensures quality service to Co-op City's nearly 60,000 residents.
The unionized Co-Op City staff include 500 porters, handymen and maintenance men, garbage collectors and groundskeepers.