SPRINGFIELD, Mo. (AP) _ Teamsters in Kansas and Missouri have approved an agreement with Associated Wholesale Grocers that ends a two-month labor dispute and send 1,200 people back to work, the union said.

Local 955 members in Kansas City, Kan., voted 329-12 Saturday evening to accept the agreement that Local 245 members in Springfield had passed earlier in the day on a 475-48 vote by Local 245 members.

AWG has agreed to pay about $3.5 million in lost wages to employees who have been out of work for two months, Local 245 business manager Jim Kabell said. AWG also promised to increase wages and improve pension and health care benefits.

Teamsters in both states have been locked out of their jobs since April 1, when negotiators failed to complete contracts with AWG by the expiration.

The grocery cooperative _ which serves 850 stores in Missouri, Kansas, Oklahoma, Arkansas, Nebraska, Iowa, Texas, Tennessee, Kentucky and Illinois _ contracted out its trucking and warehouse jobs in what it called a money-saving move after the union's contract expired.