Harley-Davidson Obtains Concessions From Unions To Keep Its Kansas City Plant.

There was no much doubt that Harley would win concessions  from workers at its Kansas City Plant. A couple of hours ago, this Monday February 28, 2011, Harley-Davidson officially confirmed that following a vote by the plant’s unionized employees ratifying a new seven-year labor, it will move forward with the implementation of a new production system at its Kansas City, Mo. vehicle operations. The new operating structure includes the use of flexible workers — unionized employees – who work as required, depending on seasonal and other volume needs and will provide coverage for vacations and other absences. Harley-Davidson expects 540 full-time hourly unionized employees at the Kansas City facility, compared to about 685 today.
Harley-Davidson’s new production system is expected to provide greater flexibility for seasonal and other volume-related production changes, an enhanced ability to vary product mix in line with customer preferences including the customization of motorcycles at the factory, and greater production efficiency overall. Similar agreements were ratified by employees at the Company’s operations in York, Pa. in December 2009 and in Milwaukee and Tomahawk, Wis. in September 2010. The changes at Kansas City are expected to generate annual operating savings of approximately $15 million in 2013, the first full year in which the agreement is fully implemented. The Company expects to incur approximately $15 million in additional restructuring charges through 2012 related to the changes at Kansas City.
“Together with our unions, Harley-Davidson is making the necessary changes across all our production facilities to succeed in a competitive, global marketplace,” said Keith Wandell, President and Chief Executive Officer of Harley-Davidson, Inc. “The Company is well on its way to building a world-class, sustainable, lean operating structure and I want to thank our employees at Kansas City for their participation in this journey. The ratification of the new contract will help ensure that we can continue to meet and exceed the expectations of our customers.”
Zipper's

13 Responses to “Harley-Davidson Obtains Concessions From Unions To Keep Its Kansas City Plant.”


  1. 1 Gas Man Feb 28th, 2011 at 7:06 pm

    As if there was much doubt in this.

    HD 3
    Unions 0

    Kinda sad, this along with the Wisconsin public works union in the news. I guess the economy isn’t done sinking.

  2. 2 Martinez Feb 28th, 2011 at 7:12 pm

    It’s not negotiations anymore. Unions and workers tremble . Nothing they can do. Harley shareholders are happy. Workers are bloody. Why keep unions?

  3. 3 Kirk Perry Feb 28th, 2011 at 7:36 pm

    “……….following a vote by the plant’s unionized employees ratifying a new seven-year labor, it will move forward with the implementation of a new production system at its Kansas City, Mo. vehicle operations ……. includes the use of flexible workers — unionized employees – who work as required, depending on seasonal and other volume needs and will provide coverage for vacations and other absences.”
    “……..thank our employees at Kansas City for their participation in this journey.”
    •••••••••••••••••••••••••••••••••••
    They only cut their full time employees by 1/4.
    Some of the people who are “seasonal” will use that as an opportunity to spring-board into a related trade or cross-train by necessity, but still having benefits. That’s like having life support.

  4. 4 fredp Feb 28th, 2011 at 10:33 pm

    Will they be able to cover vacations for the employees in India? OOPS, sorry they don’t take vacations.
    The seasonal employees won’t be back, first step in weaning out the union. Watch for the layoffs in 2 years. So textbook.

  5. 5 Chopper Kid Feb 28th, 2011 at 11:21 pm

    That is the bad thing about working in a sector which provides a good that is bought with discretionary spending. Also, this country isn’t doing so good as the classes are seperating and the middle class is shrinking. Local and State gov’t are broke and the feds are borrowing like its going out of style. All kinds of problems and very few solutions. I would like to see a prosperous America for all who want to work.

  6. 6 Heavy Metal Mar 1st, 2011 at 3:38 am

    Anytime the term “flexible” is used in this context you can bet who comes out on top.

  7. 7 sam Mar 1st, 2011 at 5:47 am

    they do’nt care about the very people they feed. why would they care about the people they’re trying to sell bikes to. company greed. that’s why i support the indie shops.

  8. 8 Hondo Cat Mar 1st, 2011 at 9:39 am

    Greed is on both sides; union and management. There was a time, back in the day, when unions were good for America. Now, due to their boundless greed, they’re effectively moving industry away from America. Without employee concessions and cuts in benefits, businesses will lose competitiveness and fold eventually anyway or move overseas. It’s a reality of the market place.

  9. 9 Jeff Nicklus Mar 1st, 2011 at 11:10 am

    Well said Hondo Cat!

    Over & Out,

    Jeff

  10. 10 burnout Mar 1st, 2011 at 11:54 am

    I second ALL the above comments!!!!! peace

  11. 11 David Mar 2nd, 2011 at 12:19 am

    It’s not only the Union’s it’s also the EPA, OSHA,and IRS that have overbrudened the corp’s and small business’s with bullshit that has cost us the manufacturing in this country.
    (remember and look into my eye’s when I tell you” the govt. is here and we will help”)

    SSDD; David

  12. 12 Nicole Mar 2nd, 2011 at 1:02 pm

    ‘Gas Man’, you said
    “As if there was much doubt in this.

    HD 3
    Unions 0

    Kinda sad, this along with the Wisconsin public works union in the news. I guess the economy isn’t done sinking.”

    At least our Governor Walker is trying to help our state financially. By union members protesting and senators fleeing the state is only hurting union employees more by more layoffs occuring. Unions are too demanding and many of those members are lucky to still have jobs. If only Obama was as smart as Walker maybe our country wouldn’t be in the mess it has become.

  13. 13 mike Mar 7th, 2011 at 10:15 am

    I have millitant union worker relatives who live in wisconsin. Its incredible the mentallity of people raised to entitlement. No matter what, its someone elses fault and business is out to get them. I cant even imagine running a business with these type of people working for me. Its not worth it.

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