More than 200 unionized workers and The Gas Co. have reached an agreement on a new five-year contract that calls for wage increases of nearly 18 percent and increased health benefits.

Members of the Hawai'i Teamsters & Allied Workers Local 996 ratified the contract yesterday. The contract covers workers on O'ahu, Kaua'i, Maui, Moloka'i, Lana'i and the Big Island.

In addition to the wage increases, the contract includes company-sponsored health and welfare benefits for the life of the agreement. Under the old contract, which expired on April 30, workers were required to pay a portion of the monthly premiums when a specific cap was exceeded.

Both sides said they were pleased with the contract.

"Current economic trends and the rising cost of healthcare were very much on (the workers') minds," said Ron Kozuma, Teamsters president. "The union and the employee-negotiating committee worked very hard to get what some of our members at The Gas Co. are calling the best contract they've ever had."

Jeffrey Kissel, The Gas Co. president and chief executive officer, agreed with Kozuma's assessment of the contract.

"This is a good contract for both our employees and our company and it will allow us to continue to work together producing clean, reliable energy and creating more 21st-century jobs for our community," Kissel said.