After putting Wisconsin on notice that it was shopping around for other places to build its motorcycles, Harley-Davdison has reached a tentative agreement with local labor unions that would keep the Bar and Shield brand in The Cheese State. Harley and union officials have not disclosed the terms of the deal, but both the Harley-Davidson and International Association of Machinists and Aerospace Workers are recommending approval of the deal. The terms of the deal are expected to be released next week, so union members can vote on the contract on September 13th.
Harley-Davidson was looking to cut $54 million in labor costs from its Wisconsin production, citing that it could find those savings easily by moving production elsewhere. Although we don’t know the terms of the deal, one can expect similar concessions to the ones made at the York, Pennsylvania plant in December of last year. While Harley-Davidson expects workers to accept the deal, the company is prepared to act swiftly if a rejection of the deal comes back, which likely means moving production to its other facilities.
Source: Dealer News