(Crain’s) — Union workers at a McCook tool company who grabbed national attention for striking to win back health coverage have reached a deal that includes health care benefits, but requires deep pay cuts.

About 70 workers of SK Hand Tool Corp., represented by Teamsters Local 743, went on strike in August after the company withdrew health coverage.

The workers have agreed to a deal that provides health insurance and pension benefits, but cuts pay by as much as 20%, says Richard Berg, president of the union that represents a total of 11,000 workers in the Chicago area.

“The union recognizes the company had financial issues and was willing to make concessions to help, but health insurance and a pension are basic benefits union people need,” Mr. Berg said. “These workers fought very hard to keep their benefits, and we are very proud.”

A spokeswoman for SK Hand Tool, which makes tools for Sears’ Craftsman line, said the union workers will be back on the job by Monday. She said the company hired replacement workers during the strike, and some may keep their jobs, but not all of them. Production slowed during the strike, the spokeswoman said.

“We are happy for the employees to come back to work,” she said.

In August, the union said that SK Hand Tool had failed to notify employees that it would stop offering health coverage. Workers realized the benefit had been withdrawn last May when they received their paychecks and saw there was no deduction for health care.

SK Hand Tool was founded in 1921 and is operated by two of its shareholders, according to the company’s Web site.