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From a press release by Harley-Davidson Inc.:

Emphasis/boldface added by BadWeB.



HARLEY-DAVIDSON DISAPPOINTED WITH UNION VOTE



York, Pa., February 1, 2007 -- Harley-Davidson Motor Company expressed disappointment at the union vote yesterday that rejected a proposed new collective bargaining agreement for employees and authorized a strike at its final assembly operations in York, Pa. A strike at the facility is expected to occur as early as 12:01 a.m. February 2, when the current contract expires.

As a result of the pending strike, production of Touring and Softail motorcycles at Harley-Davidson’s operations in York has been suspended.

“We are obviously disappointed by the union’s decision,” said Fred Gates, General Manager of Harley-Davidson’s operations in York. “The proposed contract was structured to help manage future costs that could be detrimental to our business over the long term,” Gates said. “While Harley-Davidson is a strong company today, we don’t want to find ourselves in ten years in the same position that the Detroit auto industry is in now.”

The proposed contract provided for a four percent wage increase in each of the three contract years. Two percent of the increase was dependent on the union accepting the Company’s salaried health care plan or another plan that would save the Company an equal amount of money. The Company’s union employees in York currently pay no premium for health insurance coverage and minimal out of pocket costs. The proposal would have doubled the Company’s 401(k) contribution match and would have provided a special monthly retirement supplement for certain employees who retire during the contract period. The proposal also would have instituted a second-tier wage and benefit plan for new employees hired after February 2, 2007. For example, under the two-tier structure, new assembly worker hires would have earned $18.25 per hour in the first year of the contract, compared to $20.78 per hour for current assembly workers in the first year of the contract.

Harley-Davidson production employees in York are represented by International Association of Machinists and Aerospace Workers (IAM) Local 175.



Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services, Inc. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and offers a complete line of motorcycle parts, accessories, apparel, and general merchandise. Buell Motorcycle Company produces sport motorcycles in addition to motorcycle parts, accessories and apparel. Harley-Davidson Financial Services, Inc. provides wholesale and retail financing and insurance programs to Harley-Davidson dealers and customers.

Thread Last Poster Posts Pages Last Post Archive through February 04, 2007 Blake 30  1  02-04-07  03:48 pm

Author Message   Xl1200r Posted on Tuesday, February 06, 2007 - 10:46 am:        That said, I have seen what is happening to Manufacturing in America and Unions can help if they take a responsible roll in the company and this country. A strike should only happen in the worst of circumstances because it cost everyone big money and those big profits you are trying to get your hands on will not be there. Unions should be certifying their members, increasing the workers knowledge and training. Another area where Unions could be helpful is in monitoring foreign competition for unfair trade practices. A television manufacturer in the states just took the Chinese government to the World Trade Commission and won a judgement that imposes a large tariff on Chinese made televisions because they were flooding the market at a loss to run other manufacturers out of business. I would join such a Union! This is very well stated. I would like to recant my initial anti-Union post. I the above statement is dead on. Unions can be very powerful legal entities, but they MUST act responsibly. In order to do this, less emphasis needs to placed on the employee and MORE on saving the industry. Like others said - free health care is a joke in 2007. You are not competeting for pay with the CEO of any company - you're competing with some 16yo Mexican or Indian kid that's willing to work for a 1/3 of what you will because it will still buy him the same level of lifestyle you have.   Blake Posted on Tuesday, February 06, 2007 - 12:48 pm:        New H-D press release posted at top of page.   Cityxslicker Posted on Tuesday, February 06, 2007 - 08:54 pm:        There will be an accelerated siphoning of American profits as baby boomers retire and take their pension balloons with them and the subsequent drain on the company (insert name here) will begin. Pick a company, take a look at their retiree packages and then look at their current employees. It is simply delusional to think that Gen Y will ever see the benefits that baby boomers did.   Jscott Posted on Wednesday, February 07, 2007 - 08:18 am:        And the plot thickens.... http://www.roadracingworld.com/news/article/?artic le=28096   Court Posted on Wednesday, February 07, 2007 - 09:13 am:        That's a little bit of "old news". . .if you want the details, see last Monday's Wall Street Journal. By the way. . . some of the stock transactions were coming up against a "use or loose" date. . . unrelated to current activities. Don't read too much into it.   Gowindward Posted on Wednesday, February 07, 2007 - 10:51 am:        From Press Release "Company’s salaried health care plan or another plan that would save the Company an equal amount of money." The company is asking the union employees to accept the same health plan as the salaried staff (engineers, accountants,...etc). Seems pretty fair to me considering the fight that all companies are having to stay profitable. The great thing about living here in the USA is that if you don't like your job, or wage package you are free to go get one that pays you more and you like better. Freedom is a beautiful thing!!   Davegess Posted on Wednesday, February 07, 2007 - 12:04 pm:        One of the issues that HD faces, one that is becoming an issue for any public company, is Wall Streets habit of punishing companies that do not meet expectations for even one quarter. The drop in stock value as a result, even if the quarter was profitable and the company is making decisions for long term growth, leaves a company open to takeover. Happen to a Wisconsin company called Banta. Good long term growth history with a bright future. They had a quarter that was profitable and would have made a lot of companies happy but was below the expectations of "the street" and the stock got hammered. They were forced to fight off a hostile takeover by selling out to another company. They closed plants and the corporate headquarters, laid off a bunch of people and all because they were going to make money, just not as much as Wall Street and hoped. HD has to manage as much to control stock price as for the long term health of the company. Sad but true. Even though they are making money they need to get these health cost under control and reduce costs overall. The more quarters that set records the harder it gets to set more records.   Cobradave93 Posted on Thursday, February 08, 2007 - 06:01 pm:        This subject always goes back to health care costs. There is much more to this strike than that. Does everyone think that 96% of the people would reject the contract just over that issue alone? There's alot more than what the media wants you to hear about.   Two_buells Posted on Friday, February 09, 2007 - 01:20 am:        http://www.iamlocal-175.org/   Retired_cop Posted on Friday, February 09, 2007 - 10:31 am:        Mike, For real?????????????? Tim   Kuuud Posted on Friday, February 09, 2007 - 10:48 am:        I am a union employee of the US Gov't. it is almost unheard of in 2007 for anyone to get health care that is fully paid for...we don't. I believe the UAW even gave in on this point last year. Bret   Kuuud Posted on Friday, February 09, 2007 - 11:24 am:        I don't say that to pass judgment. The gov't tried the two-tiered system for our new hires, and our AFGE Union successfully fought back.   Two_buells Posted on Friday, February 09, 2007 - 12:07 pm:        Tim, I might keep the Uly, but I really want a Yamaha R1   Schmitty Posted on Friday, February 09, 2007 - 04:41 pm:        Cobradave if there is more to this then please fill us in. We only know what we hear from the media! I'm not passing judgement on anyone, but from what I've read you guys are on the way down the wrong road. I don't want to see a Harley made in Mexico, India, or China anymore than the next guy, but if you guys keep pushing for a bigger cut of profits, and want to keep your free health care that's where it's headed. Schmitty   Cluckcluckpush Posted on Friday, February 09, 2007 - 09:42 pm:        Who would buy a Harley made in Mexico or China? I would rather have a Honda made in Ohio! At least they keep happy employees..in my mind that helps quality?   Schmitty Posted on Saturday, February 10, 2007 - 10:09 am:        That Honda might be made in Ohio, Cluck but the profits made still end up back at the mothership in Japan. So other than the jobs involved how is that helping America? I hear it all the time, "My Toyota is made in America." Maybe, but your money went straight to Japan. You're right a happy employee builds a quality product. But, I think some of the York employee's unhappiness is being brought upon themselves at this point by their unwillingness to bend on their negotiations. I keep hearing about record profits, and the greed of the head executives, but I'm sure that your union president isn't volunteering his time in the best interest of his union brothers and sisters. I'm sure he takes a pretty sweet cut of your union dues. Maybe you should vote on a reduction in union fees rather than a pay increase.   Cluckcluckpush Posted on Sunday, February 11, 2007 - 10:13 am:        So a Chinese HD would be OK as long as $$ comes back to HQ in Milwaukee? Can we buy them at Walmart? The price should go WAY down if they can get rid of those greedy workers, right?   Court Posted on Sunday, February 11, 2007 - 10:27 am:        Cluck: Tell me what country you think the world's largest Harley-Davidson owned manufacturing facility is located in. Court   Moxnix Posted on Sunday, February 11, 2007 - 04:58 pm:        Republic of China, aka Taiwan. A few years back I heard the only U.S. parts left on a big twin were the flywheels. (Message edited by moxnix on February 11, 2007)   Cluckcluckpush Posted on Sunday, February 11, 2007 - 05:43 pm:        Really? No more Harley's for me!! Where are Polaris Victories made? Are Buells made in Taiwan too? Might explain a few things....   M2nc Posted on Sunday, February 11, 2007 - 07:08 pm:        Think Apparels. Most of those really expensive mostly fashion, little function Harley garbs are made in China.   Josh_cox Posted on Friday, February 16, 2007 - 06:34 pm:        For Immediate Release York, Pa., February 16, 2007 – Harley-Davidson reported today that it has reached a tentative labor agreement with representatives of International Association of Machinists and Aerospace Workers (IAM) Local 175 in York. The agreement is subject to membership ratification and a vote is expected to occur the week of Feb. 19. If approved, the agreement would end a strike by Harley-Davidson’s 2,800 unionized employees in York that began February 2. The Company has not disclosed terms of the proposed agreement or the timing of a possible resumption of motorcycle production in York. Harley-Davidson Motor Company, the only major U.S.-based motorcycle manufacturer, produces heavyweight motorcycles and a complete line of motorcycle parts, accessories and general merchandise. For more information, visit Harley-Davidson's web site at www.harley-davidson.com. ###   Blake Posted on Saturday, February 17, 2007 - 12:55 am:        Thanks Josh!   Anonymous Posted on Thursday, February 22, 2007 - 03:40 pm:        HARLEY-DAVIDSON AND YORK UNION REACH AGREEMENT Motorcycle Production to Resume Tonight York, Pa., Feb. 22, 2007 -- Harley-Davidson Motor Company reported that motorcycle production will resume with the third shift this evening at the Company’s final assembly operations in York, following today’s ratification of a new labor agreement by its unionized employees. The new three-year agreement between the Company and International Association of Machinists and Aerospace Workers (IAM) Local 175 becomes effective today. Harley-Davidson employees in York had been on strike since Feb. 2, after rejecting an initial proposed labor agreement Jan. 31. IAM Local 175 represents about 2,800 production employees at Harley-Davidson’s facility in York, which produces the Company’s Touring and Softail motorcycles and is the Company’s largest production operation. “We are eager to get back to work producing motorcycles again,” said Fred Gates, General Manager of Harley-Davidson’s Operations in York. “Our employees take enormous pride in building the best, highest quality motorcycles in the world and we all look forward to focusing our attention on meeting the needs of our customers.” “The agreement is an important step in managing costs that could be detrimental to the business over the long term if the Company doesn’t start to control them now,” said Gates. “The agreement helps reduce the escalation in health care and other labor-related costs while continuing to provide an outstanding total compensation and benefits package. We appreciate the support of our union employees for sharing in the solutions to ongoing business challenges,” Gates said. The new labor agreement provides annual wage increases of four percent in each of the contract’s three years. The agreement also establishes a two-tier wage structure which starts employees hired after the contract’s effective date at a wage rate that is lower than current employees, but equalizes pay by the end of the contract’s term. On the benefits side, unionized employees will participate in a new health plan that continues to require no employee premium but includes increases in the level of out-of-pocket costs that employees could incur for deductibles and co-pays. Under the agreement, unionized employees in York continue to be fully covered by the Company’s traditional non-contributory pension plan. However, for new hires, the agreement reduces the Company’s match of optional contributions that employees can make to the contributory portion of the plan. The agreement also doubles the Company’s 401(k) match to 50 percent and provides other compensation and benefit improvements. Harley-Davidson’s production and distribution facilities in Wisconsin are expected to resume normal operations over the next several weeks as a result of the resumption of production in York. The Company’s Wisconsin operations experienced reduced production and temporary layoffs of some employees due to the strike. The Wisconsin production facilities supply engines, transmissions and other components to Harley-Davidson’s final assembly operations in York and Kansas City. The Company expects to release information on the business impact of the strike early in the week of Feb. 26.   Court Posted on Thursday, February 22, 2007 - 03:52 pm:        quote: The Company expects to release information on the business impact of the strike early in the week of Feb. 26. Like excess dealer inventory has been brought back within acceptable levels. . . . Hey. . . it's a thought. Ducati is still fighting over laying off 100 folks because dealers were refusing to accept any more bikes. . .   Blake Posted on Thursday, February 22, 2007 - 04:52 pm:        Thank you Anony. That is good news.

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