SPRINGDALE, Ark. (AP) - Tyson Foods Inc. announced Thursday that workers at a plant in Cherokee, Iowa, have approved a new five-year contract that will have employees pay 25 percent of health insurance costs.

Health insurance is now fully paid by Tyson at the plant.

The pact is effective immediately. The plant has 700 workers, 600 of which are covered under the new contract.

Tyson said the agreement with the United Food and Commercial Workers union Local 179 includes a delayed start for a new health package and a retirement savings program that replaces a pension plan with a 401k plan. The contract also includes bonus pay.

Hourly base wages will not rise under the contract but most workers will get bonuses, Tyson said.

"The negotiation process took longer than expected. However, we're pleased with the outcome," plant manager Jerry Menke said. He said the contract gives the plant stability and ensures it will "remain a vibrant part of the local economy for years to come."

Workers at the plant, which makes deli meats, hams, Canadian bacon and hot dogs, have remained at their jobs without a contract since March. The workers had voted down an earlier contract offer in May.

The plan that was approved delays the start of a new health insurance program and new retirement savings plan until January 2006. The earlier proposal had the new plans start in January 2005.

The new plan will bring the plant in line with most other Tyson plants, where the company pays 75 percent of insurance costs.

Tyson said workers hired after Oct. 6 will get $9 an hour instead of the $10.69 rate paid under the expired contract. Tyson said the change was in line with wages at other plants and manufacturers in the area.