Harley, Union Reach Proposed Labor Agreement

Company Had Threatened To Move To Kansas City

Updated: 5:38 pm CDT September 3, 2010

Harley-Davidson Motor Co. and its union leaders have reached a proposed labor agreement that would keep manufacturing operations and about 1,340 jobs in Wisconsin.

The company declined to reveal Friday the terms of the proposed contract. Spokesman Bob Klein says it includes "competitive" compensation, and it gives the company the flexibility it needs to remain competitive.

The voicemail for the president of the company's largest union was full and did not accept a message.

Workers are expected to vote on the proposed contract Sept. 13.

Harley has previously said its labor costs in Milwaukee and Tomahawk were too high. The company threatened to move production to Kansas City or another U.S. city if Wisconsin workers wouldn't agree to concessions.

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