Newsday and the union representing many of its employees reached agreement Friday on a new contract proposal after two others were rejected.

The tentative agreement is similar to one voted down, 331 to 139, by members of Local 406 of the Graphic Communications Conference of the International Brotherhood of Teamsters earlier this month. There's still an immediate wage reduction of 5 percent to 10 percent and a wage freeze for two more years.

However, the three-year contract also calls for the company to put money in a defined contribution retirement plan for union workers. The contribution would equal 1 percent of an employee's gross earnings and would begin in 2013, according to a Newsday spokesman and Local 406 president Michael O'Connor.

George Tedeschi, GCC president and former Local 406 chief, confirmed a tentative agreement had been reached. Zachary Dowdy, a union vice president and Newsday reporter,  said union members would probably vote on the deal on June 27.

A Newsday spokeswoman declined to comment.

The pact came after Newsday publisher Terry Jimenez sent a letter June 10 to union leaders saying the contract turned down on June 6 was the newspaper's "last, best and final offer." Jimenez gave the union until 5 p.m. on July 5 to accept that agreement or Newsday would consider that an impasse existed and would begin imposing parts of the rejected deal.

Newsday has said its finances have been trimmed by the recession, advertisers migrating to the Internet and circulation declines at newsstands. The paper is owned by Bethpage-based Cablevision Systems Corp.

Local 406 represents employees in the pressroom, editorial, transportation, building maintenance, electronic pre-press and platemaking. In January it rejected a proposed contract that cut wages 10 percent to 15 percent and increased work hours.

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Updated 42 minutes ago Newsday probes police use of force ... Let's Go: Holidays in Manorville ... What's up on LI ... Get the latest news and more great videos at NewsdayTV

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