Harley-Davidson workers end strike

YORK, Pa., Feb. 22 (UPI) -- Harley-Davidson Inc. workers overwhelmingly approved a new contract Thursday, ending a three-week strike at the York, Pa., motorcycle production plant.

The contract at Harley-Davidson's largest production facility calls for a 12 percent wage increase over three years, the company and union said.

New employees will earn a lower starting wage than current employees earn, but wages will equalize by the end of the contract's term.

Union employees will still not have to pay healthcare premiums, but will have bigger deductibles and co-pays.

"This agreement is a significant improvement over the proposal rejected by workers earlier this month," said Tom Boger of the International Association of Machinists and Aerospace Workers.

He said some workers returned Thursday night and all would be back Monday.

"We appreciate the support of our union employees for sharing in the solutions to ongoing business challenges," York operations General Manager Fred Gates said.

Nearly 2,800 workers struck Harley-Davidson's York plant Feb. 2 after rejecting a company contract proposal that provided 4 percent annual raises but reduced pay for new hires and lowered health-insurance and pension benefits.