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Milwaukee (AP)

September 3, 2010 5:46 PM

Harley-Davidson, union reach deal to keep plant in Wis.

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

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.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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