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.