Nov. 20 (Bloomberg) -- Harley-Davidson Inc., the biggest U.S. motorcycle maker, reached a tentative labor agreement that would keep open a York, Pennsylvania, factory while reducing the number of union workers by almost half.

The seven-year accord calls for the plant, Harley’s biggest, to focus on assembly, metal fabrication and paint operations with an hourly workforce of as many as 1,100 employees, a drop from 1,950 now, said Bob Klein, a spokesman.

“The proposed agreement provides a competitive wage and benefits package that is among the best in the area while at the same time meeting the company’s need for significantly greater cost competitiveness, flexibility and efficiency,” the Milwaukee-based company said in an e-mailed statement.

Harley said when announcing in October that negotiations would begin that it would shut the plant unless workers agreed to work-rule changes. The Milwaukee-based company said the facility was inefficient.

Members of Local 175 of the International Association of Machinists and Aerospace Workers will vote on the proposed contract on Dec. 2, Paul Cover Jr., a union negotiator, said in an interview today.

“We support the agreement because it keeps jobs in the area,” Cover said.

The plant would have 700 to 800 full-time hourly employees as well as 200 to 300 who would be used on an “as-needed basis” and would provide staffing flexibility, Harley said.

The York Daily Record reported the agreement earlier today.

Harley rose 7 cents to $27.84 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 64 percent this year

To contact the reporter on this story: Alex Ortolani in Southfield, Michigan, at aortolani1@bloomberg.net

Last Updated: November 20, 2009 16:17 EST