| Author | Message | ||
     Ccryder |
Gg HARRISBURG, Pa. (AP) -- Harley-Davidson Inc. said Thursday that it is dropping any plans to move some operations to Kentucky after workers at the motorcycle maker's central Pennsylvania plant agreed to a new seven-year contract. Instead, the company said it will spend hundreds of millions of dollars to reshape the York plant, its largest motorcycle assembly facility. That includes closing one of the two factories there and laying off nearly half the current unionized work force of about 1,950. "A restructured York operation will enable the plant to be competitive and sustainable for the future, and the new labor agreement is critical to making that happen," Harley's CEO, Keith Wandell, said in a statement Thursday. Thursday's decision came 24 hours after unionized workers at the York plant approved a contract that included concessions such as wage freezes, increased employee health insurance contributions and reduced vacation days. It brings to a close a process that began in May when the company said it would look to relocate a plant that is too inefficient and costly in light of steep sales declines. Harley shares rose $12.11, or 7.7 percent, to $12.12 in midday trading. Its shares have trdaed in a 52-week range of $5.70 to $17.43. The company, based in Milwaukee, said the changes approved Thursday will cost approximately $200 million over three years, plus about $90 million in capital improvements at the York plant. The savings should come to $100 million a year, it said. The figures include about $15 million in capital grants and job training funds that Pennsylvania Gov. Ed Rendell dangled as an incentive to stay put. The expected job cuts will pile on top of the layoff of more than 600 workers at the York plant, which consists of two motorcycle factories that assemble its Touring and Softail motorcycles. Harley will close the Touring factory and produce the motorcycle in the building that currently makes the Softail motorcycles. As Harley sought union concessions, company officials visited sites in Kentucky, Tennessee and a couple other states in recent months to scout other potential locations for a new plant. A site in Shelbyville, Ky., had emerged as the favored alternative. To encourage Harley-Davidson to stay, Rendell offered about $15 million in incentives while union negotiators agreed to a contract that workers viewed with distaste, but approved anyway. "There are no jobs out there. I need my job," worker Joe Sinclair told the York Dispatch after the vote. Harley said the smaller work force it envisions after the layoffs will be more flexible and correspond to a streamlined operation. Once finished, it expects to have about 1,000 hourly employees, including 700 to 800 full-time production and maintenance workers and 200 to 300 on-call employees. Another 120 of the 270 management employees will be laid off, Harley said. Including this year's other cost-cutting moves at the company, Harley said it expects one-time charges of $415 million to $445 million over three years to produce a savings of $240 million to $260 million a year. | ||
| 86129squids |
That. Sucks. Balls. Large Billygoat in Full Rut Balls. | ||
| Strokizator |
"There are no jobs out there. I need my job," worker Joe Sinclair told the York Dispatch after the vote. Which union represents the workers in York? This attitude is certainly different than that expressed by the UAW last year in Detroit. | ||
| Nik |
IAM, part of AFL-CIO | ||
| Swordsman |
"Harley said the smaller work force it envisions after the layoffs will be more flexible and correspond to a streamlined operation." English version? Flexible work force: fewer people having to take up the slack for those that are missing. My company has been doing that for a year now. Results? Questionable quality control and more accidents than ever before, despite the ever-incresing safety guidelines. ~SM | ||
| Ft_bstrd |
I don't think there is a person alive that really believed that the York plant was closing. This was hardball negotiations. I think you will see more of this. Does make one wonder if recruitment of new employees into the union won't be a little more difficult. | ||
| Buellinachinashop |
"I think you will see more of this." Harley followed Mercury Marine's strong arm from this summer. Either you guys take a cut or we're moving to another Mercury plant in OK. Sure enough, Union concedes to a 7 year wage freeze, the employees of OK get screwed and Merc stayed where it originally wanted, with the town of Fond du Lac forking over 15 million as an incentive. | ||
| Sayitaintso |
Sucking money from local gov't has become a very popular flavor for manufacturers in the past couple years. In Tallahassee we had an a/c manufacturer come to town, get a free building (1.5 million iirc) lease of the land for $1 per year and no local taxes for 20 years. Also had Airtran come to town with a 2 mill per year subsidy if they agreed to stay for 3 years....after 3 years they flew the coop. Its probably good business for the companies, but it sucks to be the taxpayer funding that stuff. | ||
| Midknyte |
"... agreed to a new seven-year contract..." Whats up with the number 7 all over HD announcements and decisions? | ||
| Prof_stack |
Boeing did the same thing at its Everett, WA plant for the 2nd production line of the 787 Dreamliner. But the union stood firm. Now Boeing is opening its 2nd production line in South Carolina. It can work both ways. | ||
| Nik |
speaking of overbudget and behind schedule... | ||
| Ft_bstrd |
A "job" is not a right. It's not guaranteed. Part of the down side of collective bargaining is that you can't deal with individuals. You MUST deal with "labor" as a monolithic unit. Threatening a lock out or to close the plant is the ONLY negotiating option available when labor stands pat on their contract. I don't fault HD for the strategy. I don't fault the union for its strategy. There were basically two immovable objects. HD was simply slightly more immovable. Both sides got what they wanted. | ||
| Xbrad9r |
It is amazing that every time Harley stabs Americans in the back, their stock goes up. Who will buy your stock when every back has been stabbed? | ||
| Ft_bstrd |
Seems the best antidote to a devalued currency is high unemployment. At least the cost of living will be dropping. | ||
| Odie |
The IAM is a great union. I'm in it too. NOT!!!!! | ||
| Rocketsprink |
why start with the Union bashing. First HD f's over BUELL and all here cry. HD f's over AMERICAN WORKERS and some here are "oh well" This deals with one thing only....corporate greed. Get used to it, cause it's going to get worse...at our expense. DON'T FORGET.....www.buellhomecoming.com | ||
| Brumbear |
http://quote.morningstar.com/Stock/s.aspx?t=HOG | ||
| Ft_bstrd |
"In addition, we believe the firm must carefully broaden the appeal of its brand to secure its long-term success." Evidently the brain trusts at HD aren't listening to Morningstar. | ||
| Sayitaintso |
FB, I think they are listening but not understanding. HD seems to be working hard to expand the cruiser market rather than expanding into segments of the motorcycle industry they are not in. They have built themselves into a box and now are trying to make the box bigger rather than break free and expand beyond the limits of the box. Everything they are doing is entrenching themselves even more firmly within the limits of that box. All their marketing seems to be centered around getting new folks into motorcycles. Thats a good thing, but that same marketing approach is helping the metrics too b/c they offer products at a much more reasonable price point for a person new to motorcycles. | ||
| Two_buells |
we got screwed! >>>>>Harley shares rose $12.11, or 7.7 percent, to $12.12 in midday trading. Its shares have trdaed in a 52-week range of $5.70 to $17.43. that quote was wrong. stock closed 29.63 wed, 28.63 Thurs, 28.52 Fri |
