Just saw this on Yahoo!
CHICAGO (Reuters) - Workers at Harley-Davidson Corp.'s (NYSE:HOG - news) largest plant approved a new contract on Thursday, the workers' union said, ending a three-week-old strike that cost the company an estimated $11 million a day.
The International Association of Machinists and Aerospace Workers characterized the agreement as "a significant improvement" over the proposal rejected by workers earlier this month, preserving existing health-care benefits for current employees and killing the company's proposal for a two-tier wage system for new workers.
In a statement, IAM said the contract, which will raise workers' pay 12 percent over three years, was approved by 83 percent of the voting members of IAM Local 175.
Harley-Davidson said production at the York, Pennsylvania, facility, which makes its popular Touring and Softail bikes, would resume Thursday evening.
"There is a time for sharing sacrifices and a time for sharing success," IAM International President Tom Buffenbarger said in the statement. "And after eighteen straight quarters of record profits and sales at Harley, these workers know what time it is."
COSTLY WALKOUT
The strike, the first at the motorcycle maker in 16 years, began on February 2, after workers at the plant rejected the company's last offer.
Harley, which has a number of union contracts expiring over the next year, had been seeking a variety of concessions from the workers, including a new two-tier wage-and-benefit plan.
Milwaukee, Wisconsin-based Harley said in a statement before the strike began that 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.
Under the new contract, the union said Harley will continue to pay full health-care premiums for employees, and new hires will progress to the same top pay as current employees.
The walkout was already hurting Harley and its suppliers. Harley warned that its first-quarter shipments would not meet forecasts and that layoffs were likely at motorcycle component plants in Wisconsin that supply the striking plant.
Analysts estimated that each day of the strike cost Harley $11 million in lost sales, and about one penny per share in earnings.
In a statement, Fred Gates, the general manager of Harley-Davidson's York operations said, "We are eager to get back to work producing motorcycles again."
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