Harley-Davidson Employees Read the Tea Leaves

by | Sep 23, 2010 | Labor Relations Ink

It is finally starting to dawn on manufacturing-sector union members that if they attempt to strangle a business with financial burdens it cannot bear, it is in the company’s interest to pull up roots and move to a state with a more business-friendly climate. Harley-Davidson employees in Wisconsin were the latest to capitulate and accept the company’s last best offer, which created a two-tier workforce, and at one facility called for the elimination of 25% of jobs. In exchange for the concessions, the jobs will stay in Wisconsin. Harley CEO Keith Wandell sent a letter to the company’s 1,400 Wisconsin union employees warning them that they will have just one chance to ratify the concessions in wages and benefits. The employees include members in two unions, the Steelworkers and the Machinists. The contract has no guarantees, but the company apparently said they would stop searching for a new location.

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