Employees of Missouri American Water Co. were prepared to go on strike Wednesday night.

But the threat of losing health insurance benefits turned the vote and workers ratified a new contract hours before their agreement expired.

“These guys deserve better than what they got,” said Scott Howell, business manager for Laborers’ International Union Local No. 579.

The union represents 23 workers in the commercial and distribution division of Missouri American. Their five-year labor agreement expired at midnight Wednesday.

Mr. Howell said Missouri American employees in St. Joseph earn about $1.10 less per hour than those in Joplin, but the local cost of living is higher and the rate of employee productivity is higher.

The final agreement calls for a 3 percent raise every year for three years. The union had been hoping for a 3.5 percent increase.

“With the economy being what it is, when you figure in gas and basic food, a 3 percent increase is not going to put a tank of gas in your car,” he said.

Workers were discouraged that wages did not increase, considering Missouri American increased water rates for customers 29 percent last year. The company also has a pending request for another 8 percent raise this year. Workers feel they often bear the brunt of customer anger over higher rates.

Recent rate increases were used primarily to pay for improvements to treatment plants and water mains, said Christie Barnhart, spokeswoman for Missouri American.

When workers met to vote at 4 p.m. Wednesday, they first voted down the proposal 16-7.

“The guys were committed to striking. Sometimes, you got to take a stand,” Mr. Howell said.

The company would have called in workers from other cities in case of a strike, Ms. Barnhart said.

When informed of the vote, Missouri American said as of midnight, the workers would not have health insurance. The union cast ballots again and the original offer was accepted.

“I’m glad we were able to come to some sort of agreement,” Ms. Barnhart said. “I think we have excellent employees that are conscientious and take a lot of pride in what they do.”

Mr. Howell said the employees were discouraged by the outcome, but back on the job.

“These guys are doing a good job for the company. We were looking for some type of appreciation for what they do,” he said.

Business editor Susan Mires can be reached at susanm@npgco.com.