Archive for December 3rd, 2009

Harley To Restructure York Operations

December 3, 2009

New Labor Agreement Reached

Harley-Davidson, Inc. is going to restructure its motorcycle operations in York, Pa., now that it has reached an agreement with the union there. The seven-year labor agreement by company employees at York, this week was followed by the decision of Harley’s  board of directors okaying the restructuring plan and related funding.

The new union pact paves the way for Harley’s previously stated goal of cutting nearly half of the 2,000 non-management jobs at the plant. The company expects to employ about 1,000 full-time and “casual” workers at the plant. The operation will also employ about 150 salaried employees, compared to about 270 today. The staff cuts and other concessions were necessary to keep the company viable, said one analyst.

The new long-term agreement keeps Harley and its well-paying jobs in York. The company had been considering pulling out of York and relocating the operations to a new facility in Kentucky.

“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,” said Keith Wandell, president and CEO of Harley-Davidson, Inc., in announcing the company’s plans.