Teamsters Local 175 and Capitol Beverage Co. agreed on a new three-year contract, which union members approved Sunday afternoon by a 28-2 vote.

The agreement averted a strike by 38 employees, set to begin at midnight Sunday. The new contract will expire on April 30, 2011.

Hourly workers, including warehouse workers and employees who assist drivers in unloading trucks, will receive a wage increase of $2 an hour during the contract's first year and an additional $1 an hour during the next two years.

Over its life, the new contract doubles the base pay for drivers and increases their commissions for each case of beer they deliver to customers.

The agreement also reduces proposed health insurance deductibles from $1,000 to $250, and cuts employees' maximum annual out-of-pocket health expenditure limits by more than 50 percent.

Ken Hall, president of Local 175 based in South Charleston, said, "We came from nowhere to a great settlement.

"The workers were unified and committed to bringing their wages closer to industry standards, as well as improving their health insurance.

"In the end, the company recognized those concerns and agreed to substantial increases in wages and benefits. We are very happy we were able to reach this agreement and avoid disruptions of service for customers and consumers in West Virginia," Hall said Sunday.

Capitol Beverage did not return a telephone message left at its Sissonville headquarters on Sunday afternoon.

Teamsters Local 175 and Capitol Beverage Co. agreed on a new three-year contract, which union members approved Sunday afternoon by a 28-2 vote.

The agreement averted a strike by 38 employees, set to begin at midnight Sunday. The new contract will expire on April 30, 2011.

Hourly workers, including warehouse workers and employees who assist drivers in unloading trucks, will receive a wage increase of $2 an hour during the contract's first year and an additional $1 an hour during the next two years.

Over its life, the new contract doubles the base pay for drivers and increases their commissions for each case of beer they deliver to customers.

The agreement also reduces proposed health insurance deductibles from $1,000 to $250, and cuts employees' maximum annual out-of-pocket health expenditure limits by more than 50 percent.

Ken Hall, president of Local 175 based in South Charleston, said, "We came from nowhere to a great settlement.

"The workers were unified and committed to bringing their wages closer to industry standards, as well as improving their health insurance.

"In the end, the company recognized those concerns and agreed to substantial increases in wages and benefits. We are very happy we were able to reach this agreement and avoid disruptions of service for customers and consumers in West Virginia," Hall said Sunday.

Capitol Beverage did not return a telephone message left at its Sissonville headquarters on Sunday afternoon.

The new contract also provides additional vacation time and personal days off, as well as improvements in working conditions.

Union members had been working without a contract since May 1.

"Our employees will get all those wage increases retroactive to May 1 under the new contract," Hall said.

As part of the settlement, the union agreed to withdraw unfair-labor-practice charges it filed with the National Labor Relations Board.

After the existing contract expired, union members began passing out leaflets at local restaurants and bars. The union also bought advertising space on nine billboards in Kanawha County.

"We appreciate all the support we received from the community, including many bar owners," Hall said.

Capitol Beverage, in business since 1935, distributes Miller, Coors, Old Milwaukee and several imports, including Corona and Guinness.

Capitol Beverage drivers service customers from Beckley to Parkersburg and from Lewisburg to New Martinsville.

Reach Paul J. Nyden at pjny...@wvgazette.com or 348-5164.