"This is an excellent first contract with immediate wage and benefit increase," said Local 1016 President William C. Biblis of Hermitage.

Some of the improved benefits include a $20,000 life insurance policy, annual raises of 3 percent, three weeks paid vacation instead of two and a $250 sign-on bonus, said union organizer Tom Maykowski of Hermitage.

The eight employees of the electric and locomotive motor rebuilding and repair business, which opened about five years ago, started union negotiations in January 2000.

"We are very pleased with the outcome of what was a long and sometimes difficult process," said organizer Tom Maykowski of Hermitage.