Harley-Davidson lays off 440 in Wis. because of strike in Pa.

MILWAUKEE -- Harley-Davidson Inc. laid off 440 employees in Wisconsin yesterday because of an ongoing strike in York, Pa., at the company's largest production plant.

Some 240 employees were laid off in Tomahawk, said a spokesman for the Milwaukee-based motorcycle maker. About 200 were laid off at other plants in Wisconsin as well, he said.

The layoffs were both voluntary and forced, he said, though he declined to say how many were forced. He said it's unclear when the employees will be allowed back to work at the plants, where parts such as engines and windshields are made.

Last week, Harley said the strike would cause it to miss shipment expectations for the first quarter. The company had expected to ship between 82,000 and 84,000 bikes during the first three months of the year. Harley declined to provide updated shipment expectations for the first quarter and would not say whether the strike will have an effect on financial guidance for the full year.

Some 2,800 workers have been striking since Feb. 2 at the York plant, where top-selling Touring and Softail bikes are made.

Members of the International Association of Machinists and Aerospace Works, Local 175, overwhelmingly rejected a three-year contract proposal, which offered annual raises of 4 percent, but would have reduced pay for new hires, required employees to begin paying part of their health insurance premiums, and forced pension concessions.