Enter multiple symbols separated by commas

Harley Workers Authorize Strike At Key Plant

Workers at Harley-Davidson's largest assembly plant have rejected a proposed contract and authorized a strike that could begin early on Friday.

The workers at the motorcycle maker's York, Pennsylvania, plant voted overwhelmingly on Wednesday to reject a proposed new contract that called for lower wages and benefits for new workers and forced all union-represented workers to pay more for health insurance.

The York workers, who are represented by the International Association of Machinists and Aerospace Workers Local 175, also voted to authorize a strike beginning a minute after midnight, when the current contract expires.

In a statement released on Thursday that acknowledged the vote, Harley said it was disappointed by the development. It said the contract concessions were necessary to help the
company, which is currently enjoying growing sales and profits, avoid finding itself "in the same position that the Detroit auto industry is in now" 10 years down the road.

The stakes are potentially high. In a note to investors, Tim Conder, an analyst at A.G. Edwards & Sons, pointed out that the two bikes that come out of York are Harley's highest margin products and account for about 60% of all the units it makes.

But Conder said he was optimistic that the issues would be "quickly resolved," and a strike averted, citing Harley's long history of "extremely good company/labor relations."

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Lottery ticket

    A thief who broke into the car of a Seattle couple left behind a million-dollar lottery ticket, NBC News reports.

  • The Lamborghini SpA Urus SUV.

    There's no shortage of luxury vehicle choices, but increasingly the wealthy are opting for high-end SUVs instead of traditional models.

  • Mike Trout #27 of the Los Angeles Angels takes a picture with fans before a game with Boston Red Sox at Fenway Park on May 23, 2015 in Boston, Massachusetts.

    MLB is using digital media initiatives like Snapchat and Web video to connect with younger viewers. Is it enough?

U.S. Video

  • Cramer: Here's the no. 1 play in cybersecurity

    Guarding Your Portfolio? "Mad Money" host Jim Cramer's got the number one pick for protection services in today's digital world.

  • Underestimate Cisco at own peril: Cramer

    Mad Money's Jim Cramer takes a look at the cybersecurity space to see if it could also protect your money.

  • Fly with LUV?

    While remaining profitable, Gary Kelly, Southwest Airlines chairman and CEO, tells Mad Money's Jim Cramer the company continues to focus on being a great airline and offering great customer service.