Members of United Steel Workers Local 13 returned to work Monday at Milbank Manufacturing Co. after ratifying a three-year contract.

The Kansas City company last week locked out the union after contract negotiations hit a snag.

After federal mediation, the company and union agreed to a new contract that includes a wage increase of $1.10 an hour over the life of the contract.

Union members also will be paid the equivalent of three days of lost wages.

Lavon Winkler, Milbank chief executive, said he thought the agreement was equitable.

“We’re really glad to have this behind us. There’s a lot to accomplish ahead,” Winkler said.

John Wiseman, subdistrict director for the union, said that members will participate in the company’s wellness plan and that the agreement includes no increase in the employee contribution for family health insurance coverage.

Health care cost increases had been the biggest sticking point in negotiations.

The union also is withdrawing three unfair labor charges it had filed with the National Labor Relations Board.

The contract covers 194 workers at the electrical equipment manufacturing company.