The three-week worker strike against motorcycle maker Harley-Davidson, Inc. (NYSE: HOG) at its largest plant is over, as union workers ratified a new 3-year contract on Thursday.

About 2,800 Members of the International Association of Machinists and Aerospace Workers (IAM) Local 175 in York, Pa. approved the new contract with an 83 percent vote.

This agreement is a significant improvement over the proposal rejected by workers earlier this month, said lead union negotiator Tom Boger.

Harley had been seeking a two-tier wage and benefits plan. Under the plan, new workers start at a lower hourly rate than current employees, but pay eventually equalizes by the end of the contract's term.

The new contract also institutes a 12 percent wage increase over the term of the contract, eventually reaching a maximum of $27.89 per hour.

In benefits, employees will continue to not pay a premium for health coverage but they may pay more out-of-pocket costs.

Harley said that production will resume this evening at the York plant.

Shares of Harley-Davidson fell 1.17 percent, or 82 cents, to $69.40 in afternoon trading on the New York Stock Exchange.

Pennsylvania