Union workers at Kroger Co. stores in Houston and Dallas averted a strike by ratifying a three-year agreement with the grocery chain on a new contract that had been hung up on health care benefits.

The contract, ratified Sunday, provides wage increases, increased vacation and affordable health care, said Chad Young, a vice president with United Food and Commercial Workers International.

"Workers are pleased with the contract," Young said.

Cincinnati-based Kroger said the agreement covers more than 13,000 workers in 202 stores in the Dallas and Houston areas. Union officials had complained that the company's wage and health insurance offers had been unacceptable.

"This agreement provides a very good total compensation package for our associates and their families and helps to make Kroger more competitive in the marketplace," said Bill Breetz, president of Kroger's Southwest Division.

Before the two sides reached a tentative agreement late last week, Kroger had taken out newspaper advertisements looking to hire new employees. On Thursday, union members had rallied at a Kroger in Houston and asked customers to boycott if there was a strike.

The food workers' Dallas local represents about 600 meat cutters in 90 Kroger stores who had been without a contract since June 6. In Houston, more than 12,000 cashiers, meat cutters and other workers had been without a contract since March 31.