Harley accepts wage cuts

[Magoo]

Investors hit the throttle on Harley-Davidson shares Wednesday, a day after the company's union at its Wisconsin production facilities agreed to a new cost-saving contract.

Harley said its union voted to approve a new labor agreement that the motorcycle maker says will generate about $50 million in annual savings starting in 2013. The seven-year contract freezes employees' pay, slashes hundreds of production jobs and assigns large volumes of work to part-time workers.

Harley said it will take an additional $85 million in restructuring charges related to the new contracts through 2012.

The company said the new contract was a key cost-saving measure. Harley has been struggling with weak earnings amid the economic downturn, as consumers have shunned its pricey, high-end bikes. Harley had been threatening to move production out of Wisconsin, where it is headquartered, if workers did not approve the contract.

The company has been focused on cutting costs and streamlining its business over the last two years. In December, the company's union at its plant in York, Pa., also agreed to a cost-saving labor contract after Harley threatened to leave. Last year, the company announced the shutdown of its Buell sport-bike line and said it would sell its MV Agusta line of sport bikes.

Baird analyst Craig Kennison reiterated his "Outperform" rating on the stock in a note to investors. Kennison said selling bikes built at a unionized factory is an important consideration for the company's buyers.

"Harley did not seek to move the jobs to a nonunion work force," he said. "Union-made in America matters to many American riders."

 

[woodbutcher]

"Harley has been struggling with weak earnings amid the economic downturn, as consumers have shunned its pricey, high-end bikes. Harley had been threatening to move production out of Wisconsin, where it is headquartered, if workers did not approve the contract".

so, with all the money they will be saving from the cost cuts, will they reduce the cost of their "pricey, high-end bikes" and when the contract nears it's end, demand another reduction in the payroll or threaten to move out-of-state again?????? people get ready, there's a train a-comin'.

 

[BorgerBigDog]

Crap

 

[barhopper]

"Harley has been struggling with weak earnings amid the economic downturn, as consumers have shunned its pricey, high-end bikes. Harley had been threatening to move production out of Wisconsin, where it is headquartered, if workers did not approve the contract".

so, with all the money they will be saving from the cost cuts, will they reduce the cost of their "pricey, high-end bikes" and when the contract nears it's end, demand another reduction in the payroll or threaten to move out-of-state again?????? people get ready, there's a train a-comin'.

No pay reductions, just a freeze. They should be happy they even have a job in this market. If the workers don't like it, go find another job. Everyone has choices. A company has to make money or the company goes under then no one works. Smart move by management. The Union has zero power in this market. It will get better in the years to come.

 

[armad]

No, with all the savings it means that Willie will get a few more million to stuff in his mattress. AND the upper management will get some nice bonus'.

 

[Dozer1]

The Union has zero power in this market. It will get better in the years to come.

Nor, without the work, do corps have much power, either. Neither side is in much of a bargining position right now. I know, union painter since I was a kid, and I've been outa work for jus over 7 months now. We just finished negotiating our new contract as well. Both sides made concessions. Sucks! But what else can we do?

On a sidenote...if management EVER decided to move out of Milwaukee, I would NEVER buy anything Harley again!!! Waaaaay too much history involved there!!! And sometimes there's simply more to it than just money!

But hopefully you're right...Think we're ALL hoping it will get better in years to come!!! :2thumbs:

 

[barhopper]

BDM I bet is non-union. We all bought them. Corps will always be fine since there is a huge non-union labor force out there willing to work. Lots of if not most of harley parts are made by non-union shops in other countries I bet also. There is a place for everyone. I hope the best for all.

 

[NascarNutCase]

The shirts and ties are the ones who always benefit the most in these situations. I understand the need to drive down the cost of production elsewise the time may come when the common guy won't even be able to afford to buy a Harley. Just my worthless two cents.:bang:

 

[jbotts]

u

 

[KuruptedOne]

No pay reductions, just a freeze. They should be happy they even have a job in this market. If the workers don't like it, go find another job. Everyone has choices. A company has to make money or the company goes under then no one works. Smart move by management. The Union has zero power in this market. It will get better in the years to come.

:rant2:

Really? Did the CEO take a pay cut? Did any of the upper management take a pay cut? I doubt it. They always look down to the workers to make less money, but the management always seem to continue to take home their million dollar salaries. It's not always the unionized workers causing the problem. It is the mis-managed companies with the white collar crooks stealing from them!!!

 

[KnotSo]

Buy HOG stock, participate in the profits.

Todays closing Price: 28.28

52 Week High 36.13
52 Week Low 20.76

Avg. Daily Vol. (13 wk.) 3.63 Mil

 

[kfoss8]

:rant2:

Really? Did the CEO take a pay cut? Did any of the upper management take a pay cut? I doubt it. They always look down to the workers to make less money, but the management always seem to continue to take home their million dollar salaries. It's not always the unionized workers causing the problem. It is the mis-managed companies with the white collar crooks stealing from them!!!

Amen to that brother Go Union, Some markets like the food Industry the union still does have alot of power here at Nestle USA we work non stop 7 days a week without us they have nothing going out the door

Teamsters Union

 

[Tom Chop]

I also say Crap! I am an Ironworker of over 39 years. Our last contract, which I helped negotiate-at the time I was the local`s Recording Secretary, was one helluva fight. The Steel Erectors and Crane Rental Association asked initally for a $3.00 cut over three years @ one dollar a year. Needless to say we were far apart. To add insult to injury a Pipefitter Local in the area had setteled a contract for an increase of $3.50 annually over a three year agreement. Long to short we finally arrived at funding the insurance plan that we have and agreed to meet annually to see if the economy could or would bear any sort of an increase, Ha! Fat chance that the owners will admit they can afford to pay a higher wage to the poor-working stiff. IMHO
The workers at H-D are unfortunately having to go through some of the same disappointments that many of us have endured over the last few years. Fortunately though they are still employed and their jobs haven`t gone overseas---Yet! Lets all hope that scenario isn`t on the radar. I know what I`m saying is of little comfort but I have worked a grand total of 7 weeks this year so their contract, though it may not be what they wished, is still a contract and they don`t have to move or sell their shit, yet.
Don`t worry the Big Dog will not go at all! I LOVE my K-9. The old lady will go first, then the four legged dog, but under no circumstances will the Big-Dog! No how-No way.

Take Care
Tom Chop

 

[Steve1028]

All I can say is, I bought a new Chevy K5 Blazer fully loaded in 1986 for $16,000, and today a comparable fully loaded Chevy Tahoe is over $50,000...that's over 300% increase. My salary during the same time frame increased 200%. UAW workers make $30 plus an hour, and my workers make $11 an hour. With all the plants moving jobs offshore, is it the greed of management, the union, or both? All I can say is, I'm like a lot of Americans, and I can no longer afford to buy the same things I used to buy.

 

[KuruptedOne]

All I can say is, I bought a new Chevy K5 Blazer fully loaded in 1986 for $16,000, and today a comparable fully loaded Chevy Tahoe is over $50,000...that's over 300% increase. My salary during the same time frame increased 200%. UAW workers make $30 plus an hour, and my workers make $11 an hour. With all the plants moving jobs offshore, is it the greed of management, the union, or both? All I can say is, I'm like a lot of Americans, and I can no longer afford to buy the same things I used to buy.

And we all know $11 an hour is not a reasonable wage to work for. That $30 an hour wage grosses them $57,000 a year and then you take out taxes and they are down to $43,000 and then union dues, health care, and retirement and they are probably around $36,000-$38,000. I think that is reasonable pay for the work they do. And over that same time period of inflation I wonder how many of their jobs were replaced by some type of automation? Yet the corporate heads ride off with their $15-$25 million dollar salaries and fly around in the corporate jets, take part in their stock options, and bleed the companies they lead dry! That one corporate salary could pay almost 300 of those workers. We all know where the problems lie. The taxpayers already had to bail out corporate greed once, and if it is not changed it will happen again...