Two labor unions have ended a partnership agreement with Harley-Davidson, citing differences with how the Bar & Shield brand handles staffing issues at its factories (Harley has been accused of replacing hourly union workers with temporary seasonal workers).
The move comes after a meeting on Monday, which saw leaders from the International Association of Machinists & Aerospace Workers (IAM), United Steelworkers (USW), and Harley-Davidson President & CEO Matt Levatich unable to agree on how to handle staffing issues going forward.
While the disagreement ends an accord that has existed between the unions and Harley-Davidson for the past two decades, it does not affect the collective bargaining agreement that the unions have with Harley-Davidson, which has been incorrectly reported elsewhere.
Feeling the effects of international trade, and a future without the TPP, Harley-Davidson is reported by the New York Times to be opening a new factory in Thailand – country that places a 60% tariff on motorcycles in Harley-Davidson’s relevant market.
The news comes at the dismay from Harley-Davidson’s workforce, which has just seen its ranks diminished by 118 jobs at its York plant, in Pennsylvania. Despite this, Harley-Davidson says that the move is about growing sales abroad, not losing jobs in the United States.
“This is absolutely not about taking jobs out of the United States,” said Marc McAllister, the Managing Director of Harley-Davidson’s international sales, while talking to the NY Times. “This is about growing our business in Asia.”
Of course, if Harley-Davidson wasn’t having to side-step a 60% tariff to sell motorcycles in Thailand, one has to wonder if the Bar & Shield brand would be building a factory in Thailand in the first place…