MONTREAL - Montreal La Presse took a pair of major steps toward resolving a labour dispute Thursday, which likely ensures the survival of the 125-year-old newspaper.

North America's biggest French-language broadsheet said in a statement it had reached a tentative deal with the last of its eight unions, the one representing distribution employees.

The union representing editorial staff then announced later in the day its members had voted massively in favour of their deal - with a 93 per cent approval rate.

Other employees will vote in the next few days.

The newspaper had threatened earlier this month to close its doors on Dec. 1 if it could not get concessions from the unions.

The union representing editorial employees accepted a salary freeze for 2009, 2010 and 2011. For 2012 and 2013, salaries will rise by two per cent a year.

"It's not the agreement we were dreaming about but it is one that takes into account the current context," said Frederic Murphy, interim union president.

"There is a sense of relief that comes with it (the deal)."

The union also agreed to completely integrate its traditional newspaper activities with those of La Presse's website, Cyberpresse.com.

Union employees also agreed to give up their four-day work week, replacing it with a standard five-day week.

In agreements reached earlier, officials with the other unions said they had made a variety of concessions including changes to insurance benefits, their retirement plan and the holiday schedule.

The newspaper wins frequent praise from within its industry and from media observers for the depth of its coverage, from international issues to municipal politics where it played a key role this year in breaking details of Montreal's construction scandal.