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ALBANY, N.Y. -- New York State's largest union votes and approves a new five-year labor contract which will save the jobs of thousands of state workers. The contract was ratified in a vote late Monday night.

The deal was first agreed upon by the Civil Service Employees Association and Governor Cuomo in June.

The contract calls for freezing base wages for the first three years, and then allows for retention payments and salary increases in each of the last two years.

It also includes two years worth of furloughs and increased health insurance costs.

The contract was part of the Cuomo administration's effort to reduce a $10 billion budget deficit in April but will avoid about 4,500 layoffs.

In a statement, CSEA President Danny Donohue said, "These are not ordinary times and CSEA worked hard to reach an agreement that we believed would be in everyone's best interest. CSEA members agree that this contract is reasonable and responsible for the long term and shows that CSEA members will do what is right for the good of all New Yorkers."

The terms of the agreement will take effect immediately.

PEF, the state's second largest union, has until Sept. 27 to vote on their contract.