MILTON— The 750 employees at ConAgra Foods in Milton will get raises that work out to an average of $1.87 an hour over three years, and improved health benefits as part of a new three-year agreement.

“This is great news for the employees and for Milton,” said United Food and Commercial Workers Local 38 President Russ Baker.

More than 90 percent of the membership approved the agreement, Baker said.

“This contract shows that it’s possible with the right leadership for labor and management to work together to achieve a contract that will help our local economy prosper,” Baker added.

ConAgra spokesman Dave Jackson said: “We are very happy to have reached an agreement. This shows that we recognize our employees and are dedicated to a long and successful future for all of them.”

Baker said negotiations with ConAgra began during the summer.

“This has been an ongoing process, and we finalized last Thursday,” he said.

The raise will average out to about $1.87 an hour over the next three years with about 500 of the senior employees getting lump sum payments of $1,500 and $1,200 over the next two years.

Effective immediately, the rest of the workers will get a $1 an hour raise each of the next two years.

“It is a fair pay structure that ensures everyone in the plant is paid equally for their work,” Baker said.

The previous contract was set up in a “two-tier” structure that had new employees being hired at $4 an hour less than any employee who was working at the plant for more than four years.

With the new contract, all new employees will be paid $2 an hour less than long-term workers. In the final year of the contract, a 3 percent increase will be given to all employees.

Milton Mayor Paul Webb said: “This is a good thing for the employees. I am happy for all of them.”

ConAgra Foods is the biggest employer in Milton, producing such foods for Chef Boyardee pasta and pizza, Gulden’s Mustard, Andy Capp fries and Crunch ‘n Munch snacks.

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