New work deal ends Harley strike

The strike was the first at the firm in 16 years

Workers at iconic motorcycle manufacturer Harley-Davidson have agreed a new work deal, ending a three week strike at its largest US factory.

The agreement keeps health benefits offered to staff, ends plans to introduce a two-tier wage structure and will see pay rise 12% over three years.

About 2,800 staff at the plant in York, Pennsylvania downed tools on 2 February in protest at proposed changes.

The strike is thought to have cost Harley about $11m a day.

The walkout dented shipments of models such as the Touring and Softail which are made at the factory.

Eroding competitiveness

The workers' union, the International Association of Machinists and Aerospace Workers, said the agreement was "a significant improvement" on earlier offers.

Before the strike, Harley had said that although its profits were rising, it was worried about long-term prospects.

The burden of rising pension and healthcare costs could erode its competitiveness in the same way as it has affected the leading US car companies, it said.