The economic outlook for Harley-Davidson right now is not looking good. Just last year, the Bar & Shield brand cut 118 jobs from its plant in York, citing the need to cut production costs, and to reduce factory capacity so that it was more inline with consumer demand. That demand has seemingly dropped even further though, as Harley-Davidson will cut 260 jobs from its production ranks, losing roughly 800 positions in Kansas City, but adding 450 positions back to its York facility, where it is consolidating. The news comes as part of Harley-Davidson’s recounting of its rough go at 2017. The American brand saw its sales in the United States down 8.5% (down 6.7% worldwide), with the fourth quarter of the year taking a particular beating: down 11.1% in the USA (9.6% worldwide).
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.
News out of Milwaukee is that Harley-Davidson will be laying off roughly 200 workers, as the company adjusts its workforce to reflect expected motorcycle production volumes for the coming year. This news is directly associated with the current slowdown in Harley-Davidson sales, and as such, the layoffs will affect primarily production line workers. The Milwaukee Journal Sentinel reports that the layoffs will occur at multiple Harley-Davidson production facilities: 117 employees at the York plant, 35 at the Tomahawk plant, and a handful at the the engine plant in Menomonee Falls. This isn’t the first time that Harley-Davidson adjusted its workforce volume to match its production needs, though the layoffs do suggest that Harley-Davidson feels that its projected reduction in production numbers is likely to be a long-term situation.
Fresh on the heels of Wisconsin’s Harley-Davidson branded license plates, the Keystone State is set to make Harley-Davidson the official motorcycle of Pennsylvania. An honor already bestowed by Wisconsin this past February, Pennsylvania also has a bill in the state’s House of Representatives that would give special status to the Bar & Shield.
Sponsored by Representative William Kortz (D-Allegheny County), the Pennsylvania law would pay homage to the “thousands of Harley-Davidson enthusiasts [who] have trekked to York to witness firsthand the living legacy of Harley-Davidson USA.” The bill continues on with some feel-good patriotic sentiment, saying that “the Harley-Davidson motorcycle is a true-blue American iron horse manufactured in Pennsylvania by American workers using American steel.”
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 is looking to slash costs wherever they may be, and that includes its assembly/manufacturing line labor costs. HD and Milwaukee go together like peas and carrots, but Harley-Davidson has warned that if it doesn’t see lowering labor costs, it could walk away from Wisconsin all-together. At issue is nearlt $54 million in what Harley calls “costs gaps”, which the company attributes to the high cost of manufacturing at its Menomonee Falls and Tomahawk facilities.
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.