Wage deal could end Harley-Davidson strike

HARLEY-Davidson says it has reached a tentative agreement to end a strike by 2,800 workers at its largest plant.

The US motorcycle maker declined to disclose details of the proposed deal that would end a walkout at its plant in York, Pennsylvania, which entered its third week on Friday. The company said it would not specify when production would resume at the plant, which makes its Touring and Softail motorcycles.

Harley said the agreement was subject to ratification by workers and that a vote was expected some time next week.

A spokesman for the International Association of Machinists and Aerospace Workers confirmed that an agreement had been reached.

The strike, the first at the motorcycle maker in 16 years, began on February 2, after the workers rejected the company’s “last, best and final” offer for a new three-year contract.

Harley, which has a number of major union contracts expiring over the next year, had been seeking a variety of concessions from workers, including a new two-tier wage-and-benefit plan.

Milwaukee, Wisconsin-based based Harley said the concessions were necessary to help the company avoid finding itself “in the same position that the Detroit auto industry is in now” 10 years down the road.

Analysts estimated that each day of the strike cost Harley $11 million (€8.37m) in lost sales, and about one penny per share in earnings.