A planned cabin crew strike that would have grounded a large number of flights in Finland has been canceled after employers and the union agreed to a mediator's proposal, the union said on Wednesday.

"We and the employers' side accepted the proposal, so the strike will be canceled," said SLSY cabin crew union head Mauri Koskenniemi. He said the terms of the deal were similar to Finland's nationwide pay agreement struck in November.

The SLSY planned to start the strike on March 26 on Finnair and Blue1.

The airlines said they wanted to cut labor costs through improved planning and increasing crew scheduling efficiency. The union said this in effect would be a wage cut, as its members would likely work longer hours for the same money.