The Broadway League and Disney Theatrical Productions, which represent producers, and the International Alliance of Theatrical Stage Employees, announced Thursday they have reached a tentative agreement with Disney Theatrical and industry trade group the Broadway League, thus averting a strike that would have shut down Broadway and touring productions.

The International Alliance of Theatrical Stage Employees (IATSE), which represents the 1,500 stagehands and other backstage workers involved in the dispute, said it was conducting a strike authorization vote on Wednesday and Thursday. 

The union later said in a joint statement that it reached an agreement with bargainers who act on behalf of theater owners and producers.

The statement further said that the contract has yet to be ratified by IATSE's rank-and-file and will be put to members in the coming days. 

"The strike has been averted, though the contract must be approved by the membership," said union spokesperson Jonas Loeb.  

The deal was agreed after the IATSE authorized a vote on whether to strike on Wednesday. 

Read more: Hollywood set for first shutdown strike since 1960

US reports said that industrial action would have severely harmed New York's tourism and economy given it being at its peak in the summer season. If approved, the walkout would have closed down 28 shows in New York and 17 performances currently touring the US and Canada.    

According to website tickets, there are currently 30 Broadway shows running. 

The country has been witnessing a wave of protests by actors, writers, stagehands and backstage workers as they grapple with low pay and poor work conditions. 

Hollywood actors were set to join writers in the first industry-wide strike in 63 years on Thursday, with practically all film and television production expected to come to a standstill.

Read more: Striking actors join picket lines as Hollywood shuts down