The battle between BMW North America and the Teamsters union entered a new phase on Thursday after the two parties reached an agreement that will temporally prevent the layoff of 68 union workers at the Bavairan carmaker’s Ontario, California parts distribution center.

Teamsters is a Union founded in 1903 and represents 1.4 million workers in US, Canada and Puerto Rico.

Under the agreement, BMW will renew the contracts for the 68 workers for an additional six months. Furthermore, the German company’s management will work with the Teamsters during this period to “reach a mutually acceptable solution that addresses long-term employment for the current BMW workforce in Ontario, California,” the union said in a statement.

Originally, BMW North America had planned to lay off the union workers when their contract expires on August 31 and outsource their jobs to third-party, non-union workers. The automaker’s decision angered both the union, representatives of which rallied outside the company’s law firm in downtown LA, as well as Californian Senator and Ethics Committee Chairwoman Barbara Boxer, who urged BMW to reconsider.

“This agreement shows what Teamsters can do when we stand together and fight back,” said Teamsters General President Jim Hoffa.

“Teamsters across the country, and unions that represent BMW and supply-chain workers across the globe, took part in numerous solidarity actions this summer in support of these workers. I am hopeful that the contract extension signals a new path for BMW and the Teamster,” Hoffa added.

“Many of these employees have worked at BMW for decades,” said Bob Lennox, Secretary-Treasurer of Teamsters Local 495.

“They were facing foreclosures on their homes and loss of their health insurance at a time of record unemployment in Southern California. BMW had hired union-hostile law firm Jackson Lewis to outsource these jobs, but I am confident that BMW will honor its promises to find a solution to keep their longtime, dedicated workforce and ensure that these jobs remain good, middle-class jobs,” Lennox concluded.

Photos: Teamsters / BMW Ultimate Misery