Gallo has finally reached an agreement with the union United Farm Workers, after around two years of talks.

"Gallo believes it made a very generous and fair contract proposal," John Segale, a spokesman for Gallo, said in a statement.

He declined to discuss the specifics of the new contract.

He continued: "We are pleased that the employees ratified the company's offer."

According to the Associated Press, the 30-month contract will see wages rise 9.5%, to US$8.98 an hour, including a unilateral pay raise Gallo granted in April.

The contract covers close to 300 direct-hire workers and contract employees at Gallo.

UFW spokesman Edgar Pagaza said: "We are finally satisfied that we have been able to come to an agreement. This is a battle that has been going on for a quite a while."
Pagaza said the union had won several key battles for its workers.

The contract will also see a reduction in the amount workers pay for their health coverage and an annual US$400 bonus for farm labour contractor employees instead of medical benefits.