Production has stopped at Harley-Davidson’s largest plant in York, Pennsylvania – causing production of the company's Touring and Softail models to be suspended - as workers went on strike following rejection of a new contract offer.
The contract offer – which included annual wage increases of 4 percent over three years – was rejected as it meant agreeing to a two-tier wage system under which new hires would be paid less than current ones. There was also a proposal to double the company’s retirement plan contributions, but union employees would have been required to contribute towards health insurance cover.
The company closed down the plant, which employs more than 3,200 workers, in anticipation of the strike – and installed cement barricades to block access to all gates, according to Union Representative Tom Boger.
"We are obviously disappointed by the union's decision," said Fred Gates, general manager of Harley-Davidson's York operations "The proposed contract was structured to help manage future costs that could be detrimental to our business over the long term."
Boger said the union was prepared to return to negotiations, adding "We'll wait for the company to call us”.
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