YORK, Pa., Feb. 1 /PRNewswire-FirstCall/ -- 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. (NYSE: HOG) 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.
SOURCE Harley-Davidson Motor Company
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Related links:
http://www.harley-davidson.com
CONTACT:
Financial Contact, Mark Van Genderen,
+1-414-343-8002, or Media Contact, Bob Klein, +1-414-343-4433,
both of Harley-Davidson Motor Company
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