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Don't think you can just blame the unions; Harley is in this position for a lot of reasons.
But, I've worked for over 20 years in a job that requires mandatory union membership. I agree that at one time, unions were absolutely necessary so employees would have certain rights, better wages and increased employee safety. Now it seems that unions have priced the typicial wages beyond what most employers can, or want, or are willing to pay. With the 'tanked' economy, it's the perfect time to demand, and get, wage-earner concessions.
In California, the norm is now pay-cuts, lay-offs and furloughs. I remember a time when all of us 'union' employees would never accept pay-cuts and furloughs, and fight to the end to prevent it. Now, our union and most members roll over at the drop of a hat for whatever management wants. At 12%+ unemployment, the motto has gone from 'We Can Do It' to "...whatever; at least we still have a job."
if the engines are just made there along with some other parts and they are assembled in pa and kansas city should it still matter? it's still a harley right..thats the way they do it now .i dont think they will shut down altogether .maybe just move eng production to one or both assembly plants before they will just give up and close. just my thoughts
What you say is true, but the heart of your Harley, the beautiful v-twin engine, has always been manufactured in Milwaukee. It's the last vestige of the old school h-d, true "Milwaukee Iron." Just sux if they begin producing them in another state, or God forbid another country!!!
Something the article doesn't talk about is the ridiculous amount of taxes that the state of Wisconsin is leveraging on companies. My mom lives in Milwaukee, since they passed some new tax laws last year, this has been an ongoing discussion. Not sure of the specifics of the new taxes, but my mom had to sell her business because of them.
Keithhu posted a link to a story about the new Wisconsin State Tax in another thread on this "HD move" topic.
...and you're sure right Navy UC Rider. This new tax is off the wall. For instance:
"...<snip> Harley-Davidson Inc.s announcement that it might move its operations out of Wisconsin to cut $54 million in manufacturing costs has many people pointing to the states onerous tax laws, in particular a policy enacted in February 2009 known as combined reporting.
Combined reporting requires companies like Harley, with operations in many states, to combine all profits earned nationally so they can be taxed at the rate of the state in which the company is headquartered. In the first quarter of 2009, Harley reported losses of $22.5 million due to a change in tax laws... <snip>".
Union Wages might be overpriced for this economy, but it's not right to cut their wages and still pay the top execs. million dollar salarys and bonus's. It would be sad to see HD leave Milwaukee, but if they move oversea's, I'm outta here! I wonder how some of the GW riders feel about the japs moving out of Ohio back to Japan?
I really don't think Harley Davidson will leave Milwaukee. There's to much tradition and memories there. I realize they're mostly concerned with the bottom line but I think the union will make concessions to keep the jobs there, where it all started.
I grew up in a union family(carpenters). My dad was pro union until the day he died. I have never belonged to a union except the one that represented Corrections Officers and then only until we found out they could do absolutely nothing for us, no strikes, no negotiations, no representation at grievance hearings,etc. I would not be surprised to see the jobs come the Kansas City, since our governor just rolled over to keep Ford in KC,(no guarantee they will stay), If HD is looking then I am sure Missouri is talking to them. Just sad to see them move.
I have an opinion about union vs non union labor but lets put that aside a minute. Have you really looked at HD's financial status? They are not going broke. So heres the thing....if they cut their labor cost by relocating to a state that provides lower taxes, a non-union workforce, etc. one can assume their profit margins will be higher correct? Do you then think the price of their bikes will go down? They will use it on R&D to develop better bikes? Or....the profits will stay within the companies pockets?
Harley might as well move to Tennessee! Modern forge in Piney Flats Tennessee already makes the forgings for crankshafts, connecting rods, and rocker arm components, as well as many of the forged frame components.
7 Surprising Harley-Davidson Products that Are Not Motorcycles
Slideshow: The bar-and-shield logo shows up on far more than motorcycles, some of the company's most unexpected products have nothing to do with riding.
Slideshow: From the troubled AMF years to modern misfires, these bikes earned reputations for reliability issues, questionable engineering, or disappointing performance.
Crazy Bunderbike Build Looks Amazing, But Is It Impossible to Ride?
Slideshow: The Swiss custom shop has taken a Harley Softail and stretched it into something so long and low that it looks closer to a rolling sculpture than a conventional motorcycle.
Engraved Rebellion: Inside Bundnerbike's Glam Rock II
Slideshow: A standard cruiser becomes an intricate metal canvas in the hands of a Swiss custom house known for pushing Harley-Davidson platforms far beyond their factory brief.
Slideshow: Harley-Davidson's challenges aren't abstract; they show up in dropping shipments, shrinking dealer traffic, and strategic decisions that aren't yet translating into growth.