Baghdad ? Iraq’s parliament voted Saturday to allow some former members of Saddam Hussein’s Baath party to reclaim government jobs and said others could receive pensions but could not return to work. President Bush said the legislation was “an important step toward reconciliation.”

The long-delayed bill is the first of several major changes in Iraqi law sought by the Bush administration with the goal of easing ethnic and religious tensions. The 275-seat parliament is still deadlocked over how to share the country’s oil profits, constitutional amendments demanded by minority Sunni Arabs, and a bill spelling out rules for local elections.

The bill, approved Saturday by a unanimous show of hands, seeks to relax restrictions on the rights of members of the now-dissolved Baath party to fill government posts.

It is also designed to reinstate thousands of Baathists dismissed from government jobs after the U.S. invasion – a decision that deepened sectarian tensions between Iraq’s majority Shiites and the once-dominant Sunni Arabs, who believed the firings targeted their community.

The strict implementation of so-called de-Baathification rules also meant that many senior bureaucrats who knew how to run ministries, university departments and state companies ended up unemployed in a country where 35 years of Baath party rule and extensive government involvement in the economy had left tens of thousands of party members in key positions.

That, coupled with the disbanding of the Iraqi army, threw tens of thousands of people out of work at a critical time in Iraq’s history and fueled the burgeoning Sunni insurgency.

In Bahrain, Bush commended Iraq’s parliament for passing the new measure.

“It’s an important step toward reconciliation,” Bush said. “It’s an important sign that the leaders of that country understand that they must work together to meet the aspirations of the Iraqi people.”

The U.S. initially promoted de-Baathification but later claimed that Iraqi authorities went beyond even what the Americans had contemplated to keep Saddam’s supporters out of important jobs.

With the Sunni insurgency raging and political leaders making little progress in reconciling Iraq’s Shiite, Sunni Arab and Kurdish communities, the Americans switched positions and urged the dismantling of de-Baathification laws.

Later, enacting and implementing legislation reinstating the fired Baath supporters became one of 18 so-called benchmark issues the U.S. sought as measures for progress in national reconciliation.

The legislation can become law only when approved by Iraq’s presidential council. The council, comprised of Iraq’s president and two vice presidents, is expected to ratify the measure.

The draft law approved Saturday is not a blanket approval for all former Baathists to take government jobs.

The law will allow low-ranking Baathists not involved in past crimes against Iraqis to go back to their jobs. High-ranking Baathists will be sent to compulsory retirement and those involved in crimes will stand trial, though their families will still have the right to pension.