Hawaiian Telcom Inc. said it has reached a tentative agreement with its unionized workers on a three-year labor contract.

The state's largest telephone company also said it has hired Wall Street investment banking firm Lazard Freres & Co. as a financial adviser.

Hawaiian Telcom said its new labor contract with the International Brotherhood of Electrical Workers Local Union 1357 covers 900 of the company's 1,400 employees.

Details of the contract, which requires ratification by the majority of IBEW members, were not disclosed.

"This is one of several important steps to position Hawaiian Telcom to continue its proud history of serving the changing telecommunication needs of Hawai'i's business and residential customers," said Eric Yeaman, the company's president and chief executive officer.

The company said ratification could take about three weeks.

Hawaiian Telcom has struggled since it was acquired by Washington, D.C.-based The Carlyle Group in 2005 for $1.6 billion.

Since then, the local phone company has lost millions of dollars and thousands of customers due to greater competition from wireless and other providers.

In a filing with the Securities and Exchange Commission, Hawaiian Telcom said it hired Lazard Freres as part of a revised strategic planning effort.

Lazard, which is well known for its work in mergers and acquisitions, will assist Hawaiian Telcom in product development, debt-reduction, raising capital and debt-reduction plans.