FORT VALLEY, Ga. (AP) — A year after they voted to unionize, workers at a Georgia school bus manufacturer have approved their first contract.

The United Steelworkers union and Blue Bird Corp. said union members at Blue Bird’s assembly plants and warehouse in Fort Valley have voted to approve a three-year contract between the company and the union.

The union said the contract will provide all 1,500 covered workers with at least a 12% raise, with some of the lowest-paid workers getting raises of more than 40%. The union says the company will contribute to a retirement plan for workers, share profits, and improve health and safety.

The negotiations had been closely watched by President Joe Biden’s administration, in part because Blue Bird has gotten $40 million in federal aid to build electric school buses.

Biden released a statement Thursday saying acting Labor Secretary Julie Su had helped bring the negotiations to a successful agreement. Contract talks after a first union vote are often difficult.