On the heels of Harley-Davdison’s lackluster first quarter results of the year, the American brand has announced that it will be laying off 118 employees at its vehicle operations plant in York County, Pennsylvania.
Harley-Davidson says that the staff reductions are coming as part of a “production realignment” and that the layoffs will begin June 23rd, with a completion date around the end of July 2017.
Workers at Harley-Davidson’s Menomonee Falls plants have caved to Harley-Davidson’s labor restructuring ultimatum today, voting to approve a seven-year labor contract that would see 275 jobs cut and a two-tiered workforce implemented in the company’s Wisconsin-based production plants. The vote comes after Harley-Davidson threatened to move its Wisconsin production outside of the state (Kansas City being one of the alternatives), which would see the unions losing its entire 1,350 member workforce.
Harley-Davidson announced this week that it was able to come to an agreement with its York, Pennsylvania plant employees and union members, thus allowing the plant to remain open and producing motorcycles. The move wasn’t easy though as half of the plant’s employees will lose their jobs in order to keep the Shield & Bar in the Springettsbury Township area.
With its second quarter sales dropping 35%, Harley-Davidson is going to be trimming its ranks in order to stay afloat. The Milwaukee based company will inject 700 hourly-wage workers, and 300 salaried workers into the ranks of the unemployed, with possibly more joining them in the future. These reductions come after Harley-Davidson earlier this year announced it was eliminating 1,400-1,500 hourly production positions in 2009-2010 along with 300 salary positions.
Kawasaki, not be left out of the metric manufacturer meltdown, is offering a buyout package to 320 workers at its plant in Lincoln, Nebraska, which produces ATVs and personal water craft for Team Green. While, the buyout applies to only about 16% of the plants total 2,000 or so workers, if further costs reductions are not met then deeper cuts will likely be made.
According to Kawasaki, “rapidly declining sales” of recreational and utility products prompted the buyout, and if not enough of the employees excericse the option to have their contracts bought, then Kawasaki will “be forced to terminate some employees.” Workers at the Nebraska plant already have been working short weeks and will continue to do so for the next several months. No further comment from Kawasaki is expected until Friday, May 22.
Source: PowerSports Business