SYRACUSE, N.Y. — Penn Traffic has reached a tentative contract agreement with United Food and Commercial Workers Local One, the union representing roughly two-thirds of its workforce, the retailer here said. The contract calls for an annual wage increase of 3% and would introduce health insurance co-pays for new employees beginning in 2009, according to David J. Mahoney, vice president and general counsel for Penn Traffic, speaking in a conference call Wednesday. The deal is pending ratification from UFCW members, Mahoney said. A spokesman for Local One, based in Utica, N.Y., was not immediately available for comment.

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