ATCHISON ? Union steelworkers at Atchison Casting Corp. have agreed to a wage freeze and a reduction in benefits, saying the concessions were necessary to ensure the survival of the bankrupt company.

“I was expecting it to be a close vote, and it was,” said John Dorsey, president of Local 6943 of the United Steelworkers of America. “It’s a painful deal. We did what we had to do.”

In voting Wednesday, union members agreed to contract language eliminating a fifth week of vacation for employees, a change that affects more than 120 workers.

Other concessions include a wage freeze until 2005 and changes to health insurance, including higher deductibles and out-of-pocket expenses. The average salary for union workers is more than $14 an hour.

KPS Special Situations Fund was seeking the concessions as a condition of buying Atchison Casting out of bankruptcy. KPS, an equity fund based in New York, invests in struggling manufacturing firms that have a potential for a turnaround.