Machinists at Harley Ratify New Contract

Washington, D.C., February 22, 2007 - Members of the International Association of Machinists and Aerospace Workers (IAM) Local 175 in York, PA, today voted to ratify a new 3-year contract with Harley-Davidson that preserves established healthcare coverage, boosts wages and ends a 3-week old dispute at Harley's largest U.S. facility.

The contract was approved by 83 percent following a unanimous recommendation by the Local 175 negotiating committee. “This agreement is a significant improvement over the proposal rejected by workers earlier this month,” said Tom Boger, lead negotiator and District 98 Directing Business Representative. “I applaud the Machinists in York for their determination to win a better contract for themselves and the next generation of workers.”

Among the key issues in the dispute were healthcare costs and wage rates for new employees. Under the new contract, Harley will continue to pay full healthcare premiums for employees and new hires will progress to the same top pay as current employees. Wages will rise 12 percent over the life of the accord to a maximum hourly rate of $27.89.

“There is a time for sharing sacrifices and a time for sharing success,” said IAM International President Tom Buffenbarger. “And after eighteen straight quarters of record profits and sales at Harley, these workers know what time it is.”

Harley-Davidson earned nearly $1 billion in profits last year amid surging worldwide demand for the company’s iconic line of motorcycles and related products.

Additional information about the agreement and a return-to-work schedule for Harley workers in York will be posted on the Local 175 website at http://www.iamlocal-175.org.