Workers at US carmaker Ford have voted to accept changes to their contracts and other benefits, the United Auto Workers union (UAW) says.
The changes include freezing wages, eliminating cost-of-living increases as well as some paid holidays and bonuses.
The deal, which is aimed at helping the firm remain competitive, also involves a new funding arrangement for a health care trust.
Ford's rivals GM and Chrysler will now face pressure to do similar deals.
Ford is the first US carmaker to come to an agreement with the UAW. US carmakers have struggled with a slump in demand as the economic crisis continues. Ford is also the only one of the so-called Detroit Three that has not asked the US government for any emergency loans.
Ford claims it currently has enough money to survive the downturn but says the deal will help it address a fall of income as car sales collapse.
The deal with the UAW is one of several steps Ford has taken to cut costs as part of a turnaround plan that the company initiated four-years-ago.
Sacrifices
The union said 59% of production workers and 58% of skilled-trades workers voted for the agreement.
"We are facing an unprecedented loss of sales and revenue at Ford," said UAW Vice-President Bob King.
"The voting results show that our members are prepared to make painful sacrifices in order to be part of the solution to the problems facing Ford and the US auto industry."
The deal will also save Ford billions of dollars in health care costs. The company will now pay up to half of its obligation to a trust fund for retired workers in stock rather than cash.
The announcement came as members of the Obama administration task force were touring General Motors and Chrysler facilities in the Detroit area.
GM and Chrysler have already received $17.4bn (£12.6bn) between them in federal support, and have asked for a further $21.6bn.
Similar agreements with the UAW are needed as a requirement of their bailout packages.
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