Workers approve a 3-year wage deal

Harley workers agree to a lower wage for new hires.
HARRISBURG (AP) -- Unionized workers at Harley-Davidson Inc.'s largest manufacturing plant overwhelmingly approved a new labor agreement Thursday, ending a strike that halted motorcycle production for three weeks.
Eighty-three percent of those who voted endorsed the contract, which calls for a 12 percent wage increase over three years; institutes lower starting wages for new employees but allows them to advance to the same maximum rate earned by current employees; and will not require workers to pay health-care premiums, the union said in a statement.
The health-care provisions of the contract will require employees to pay higher out-of-pocket costs for deductibles and co-pays, the company said. Also, the company will reduce its matching of optional contributions made by new employees to a contributory portion of its pension plan.
"The agreement is an important step in managing costs that could be detrimental to the business over the long term if the company doesn't start to control them now," said Fred Gates, general manager of Harley-Davidson's York operations. "The agreement helps reduce the escalation in health care and other labor-related costs while continuing to provide an outstanding total compensation and benefits package."
What happened
Nearly 2,800 workers at the plant in York had been on strike since Feb. 2. The union rejected a company contract proposal that provided 4 percent annual raises but reduced pay for new hires and lowered health-insurance and pension benefits.
"This agreement is a significant improvement over the proposal rejected by workers earlier this month," said Tom Boger, a union representative with the International Association of Machinists and Aerospace Workers Local 175.
Employees had the option of returning to work as early as Thursday night, and all were expected to resume working Monday, Boger said.
Thursday's vote came nearly a week after the company and the union announced a tentative agreement.
The strike disrupted Harley-Davidson's national production and had ripple effects as far away as Wisconsin, where 440 employees were laid off Feb. 12. The walkout also forced many Harley suppliers to lay off workers.
Among the affected suppliers was Kuntz Electroplating of Ontario, Canada, which laid off 120 of its 600 workers. Dave Germann, vice president of human resources, said he expected the company to resume its work for Harley-Davidson within a week at the earliest.
The Wisconsin facilities are expected to resume a full production schedule over the next several weeks now that the labor dispute in York has been resolved, the company said.