(York, PA) - Harley-Davidson will keep its motorcycle assembly plant in York, Pennsylvania and will consolidate operations under one roof, ending seven months of speculation that the company would close the plant and move its operations to Kentucky.
The local union approved a new contract yesterday that paved the way for the decision. In an effort toward keeping the plant in York County Pennsylvania, Harley-Davidson workers approved a seven-year contract with a majority of the union voting in favor of the agreement.
The new contract includes concessions in wages and will result in about half of the plant's current union production workers losing their jobs.
Harley-Davidson said they also expect to receive at least $15 million in incentives from the state.
Harley CEO Keith Wandell thanked Harley union employees for their votes that will help "make the changes necessary to create a more flexible and efficient operation."
Wandell denied that consideration of an out-of-state move was in retaliation for a 2007 strike (or lockout - depending on which side was discussing the issue) that shuttered the plant for several weeks in late winter.
Harley-Davidson has reduced thousands of workers companywide as sales fell at points this year by up to 35 percent in the United States.
Posted: Thursday, December 3, 2009
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Creature from the Black Lagoon
Pretty familiar story, huh? Pretend you're going to move a factory so you can get what you want where you already are.
Same game plan as Knauf and it's worked well for them over the years.