Bartlett trustees have approved a new contract with the union representing public works employees that provides raises in each year of the pact.
The International Union of Operating Engineers Local 150 and village officials spent about five months at the bargaining table before reaching a three-year agreement.
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All but two of the 37 union members working in Bartlett voted in favor of ratifying the deal.
Local 150 spokesman Ed Maher said talks were "positive and productive."
"We were able to negotiate substantial, reasonable wage increases for the members," said Maher, adding that there were no significant changes to retirement benefits.
Union members will receive a 2 percent increase to their base salaries, retroactive to May 1, 2013; a 2.5 percent increase on May 1, 2015; and a 2.5 percent increase on May 1, 2016.
The raises are expected to cost Bartlett a total of about $230,000 over the life of contract.
"It's a fair contract," village Finance Director Jeff Martynowicz said. "It works well for both for the village and the public works union."
The agreement will generate an estimated $30,000 in savings for the village, as a result of changes to health insurance benefits.
In one cost-cutting move, Bartlett will reduce the amount it reimburses employees for copays and prescriptions, village Administrator Valerie Salmons said.
The contract also awards a one-time, $2,000 bonus to employees who reach a milestone of working 20 years for the village. New hires will not be eligible for the bonus.