DEXTER – A new three-year contract with the union representing town employees was approved Thursday by the Town Council.

The contract between the town and the American Federation of State, County and Municipal Employees, Council 93, AFL-CIO, provides town employees in the union with a 3 percent increase in wages in each of the three years.

The ceiling for sick pay was increased from 120 days to 130 days, of which 50 percent of the unused time can be collected upon retirement or termination, according to Town Manager Judy Doore.