Machinists and Steelworkers at two Harley-Davidson plants in Wisconsin voted this week to ratify a company proposal that would cut hundreds of jobs, but prevent Harley from leaving the state completely.
Harley-Davidson's board of directors met today and made the decision to keep their manufacturing in Milwaukee and Tomahawk. The company had threatened to leave the state where Harley was born, if the unions did not approve contracts that lower production costs.
The new contract includes a seven-year general wage freeze, with bonuses in the out years and an annual opportunity for a pay raise of up to three percent based on meeting specific criteria related to the business. The contract has higher health care expenses and calls for the use of casual employees who would not be entitled to health care or retirement benefits and would receive less pay for the same work done by regular, full-time employees.
Harley was also able to extract from the state of Wisconsin a package of incentives aimed at keeping Harley-Davidson's factories in the state. The incentives were described as "very aggressive and competitive,” by state officials, who would not release details.
IAM Local 78, District 10, represents approximately 120 Harley workers in Milwaukee, while the United Steelworkers of America represents more than 1,500 workers at Harley facilities in Milwaukee and Tomahawk, WI.
