Kmart Workers Approve Contract

Kmart Corp. warehouse workers represented by the United Auto Workers union ratified a labor contract guaranteeing higher pay, a signing bonus and paid days off, the UAW said Sunday.

The three-year contract covers about 1,600 employees at Kmart distribution centers in Warren, Ohio, and Morrisville, Pa.

The workers will receive signing bonuses of $2,300 and hourly wage increases of $1 in the first year and 35 cents in both the second and third years, UAW spokeswoman Geraldine Ochocinska said.

Kmart, the No. 2 U.S. discount chain, averted a potential strike by the warehouse employees, who process shipments from suppliers for delivery to the company’s stores. Troy, Mich.-based Kmart has 18 distribution centers in the U.S., eight of which are unionized, and more than 2,160 stores.

The contract provides 15 personal days, 10 of which are paid, a premium for second- and third-shift workers, health insurance and a retirement plan, the UAW said.

Kmart officials couldn’t be reached immediately for comment.