Harley Workers Stuck Between a Rock and a Harley Plant

By Dan Evon

Harley-Davidson issued a tentative agreement Friday regarding the future of its York, Pa., plant, and the nearly two thousand union workers employed there as part of the Motor Company's plan to drop costs by $150 million by 2014.

For months, workers at the York plant have feared that the factory would shut down and move to a more cost effective area like Shelby County in Kentucky.

Now Harley plans to cut the work force in half, bringing the numbers down to roughly 800 permanent workers at the York plant, with another 200 to 300 temporary workers. The contract also states the full health benefits that Harley workers currently receive will be cut to an 80/20 split.

The contract is looked upon favorably by union leaders who say it is a good sign that the factory will stay in York, Pa.

The York plant has already cut 600 employees from its work force this year. If union members vote favorably for the contract on December 2, Harley may keep the plant in Pennsylvania, but workers will lose many of their jobs and benefits.

Most workers feel that the choice comes down to whether workers want to risk their jobs, or lose them altogether.

“I want to work. I'm not pleased, but I want to work," says Ron Strine who has worked for Harley-Davidson for 16 years. "It looks like if we vote yes on this, Harley will stay."

A yes vote, along with Pennsylvania Gov. Ed Rendell’s proposal to give Harley $15 million in tax incentives, will make it likely that Harley-Davidson will stay in York, Pa.

"The proposed agreement would result in a smaller and more flexible workforce, and that really corresponds to the scale and scope of a restructured operation there," Harley-Davidson spokesman Bob Klein said Friday.

Harley plans to invest $90 million in the York factory, and will also shift the focus of the plants production. The York plant currently consists of two separate motorcycle factories that produce Harley’s Softail and Touring motorcycles.

"A restructured York operation would be leaner and focused on assembly, metal fabrication and paint," the company's statement said.

The residents of Shelby, where the unemployment rate has risen to 9 percent, were eagerly awaiting the decision for Harley to move down south. Harley has been talking with Shelby, and three other counties in Kentucky, to become possible homes for Harley-Davidson factories.

When the contract was issued to the workers of the York factory, the hope for Harley to move into Shelby was “diminished significantly,” according to Kentucky Gov. Steve Beshear.

The Harley-Davidson company has seen many changes in the past few years. In 2007, roughly 3000 workers at the York plant walked out of the factory demanding better wages and treatment. On December 2, the remaining 1900 employees will decide if they are willing to give up the wages that they fought for, in order for the chance to keep their jobs.