UPDATE 1-Smithfield, UFCW settle contract at Tar Heel plant

(Recasts, adds details)

CHICAGO, June 26 (Reuters) - Smithfield Foods Inc (SFD.N) and the United Food and Commercials Workers have agreed on a tentative labor contract at the huge Tar Heel, North Carolina, pork plant, the company and the union said on Friday.

No terms were released, and workers were scheduled to vote on the contract on Tuesday and Wednesday. The plant employs about 5,000 workers, of which about 4,600 are eligible for union representation.

"The (UFCW) bargaining committee and Smithfield believe the agreement provides a fair and equitable package for the workers and allows Smithfield to remain competitive in the market," a joint statement said.

The Tar Heel facility is the world's largest pork plant. In December, employees there voted to be represented by the UFCW. That vote ended more than 10 years of bitter fighting that included marches and demonstrations by the union.

In 2007, Smithfield sued the UFCW, accusing it of waging a negative publicity campaign against the company. The suit was later settled, and the two parties agreed to a plan that led to the December vote. (Reporting by Bob Burgdorfer; Editing by Phil Berlowitz and Lisa Von Ahn)