NEW YORK – Macy's says it has reached a tentative deal with the union representing workers at its flagship store in Manhattan early Thursday, avoiding a strike.

The union representing workers also confirmed the deal for a new contract hours earlier on the Local 1-S Macy's Workers Facebook page.

Macy's Inc. said Thursday that it worked overnight with the union on negotiations. The current contract expired at midnight Wednesday.

Stuart Applebaum, president of the Retail, Wholesale and Department Store Union, which represents the 5,000 workers including the 3,500 from the store, said big issues included health care, unpredictable schedules and pension plans for senior employees.

The Associated Press contributed to this report.