YORK, Pa. -- Harley-Davidson Inc. said Friday it reached a tentative labor agreement with union workers at its largest manufacturing plant, a breakthrough that could end a two-week-old strike. þþThe Milwaukee-based motorcycle manufacturer issued a two-paragraph statement saying a vote by the union rank-and-file was expected next week. It did not disclose terms of the deal or say when the York factory's motorcycle production might resume. þþÿWe are gratified that a tentative accord has been reached,ÿ said Frank Larkin, spokesman at the union's international headquarters in Washington, D.C. ÿIn the event of a successful ratification, we will make every effort to return to 100 percent production as quickly as possible.ÿ þþNearly 2,800 workers have been on strike since Feb. 2. The union membership had voted to reject a contract proposal from the company that provided 4 percent annual raises but reduced pay for new hires and lowered health-insurance and pension benefits. þþThe strike disrupted Harley-Davidson's national production and had ripple effects as far away as Wisconsin, where 440 employees were laid off Monday. The company had warned that additional layoffs were possible if the work stoppage in York continued. þþAnalysts said the strike was costing Harley as much as $11 million a day in sales, but that they expected the strike to be brief and to have little impact on the company's full-year performance. þþMany Harley suppliers also laid off workers because of the strike. þþA York company that polishes the metal used in Harley motorcycles laid off 35 of its 50 workers. A Nebraska plant that makes Harley exhaust products laid off 35 of its 100 employees. þþHarley-Davidson officials did not return calls late Friday from The Associated Press. þþThe company's stock jumped $1.05 to $69.09 in after-hours trading, regaining all the ground lost during Friday's regular session on the New York Stock Exchange. þþ
Source: Chicago Tribune
