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Harley-Davidson to move out of Wisconsin?
Alex White
22 July, 2010
The company wants that the contract must be worked out very fast, within 60 days, to keep the manufacturing plant open and running. This agreement would replace contracts that expire in April 2012.
THE CLASSIC Wisconsin-made Harley-Davidsons may see its last days as the company plans to move its current manufacturing unit out of Wisconsin due to conflict of interest between the company and union workers.
 
With an improved second quarter results, Harley-Davidson said on Tuesday, that unless a new, more favorable contract with its union workers is made there are minute chances of the doors at Wisconsin facility be kept open. The company wants that the contract must be worked out very fast, within 60 days, to keep the manufacturing plant open and running. This agreement would replace contracts that expire in April 2012.
 
“The company seeks to close large cost gaps in its Milwaukee-area and Tomahawk production operations, and improve flexibility to meet seasonal and other customer-driven production needs,” Harley-Davidson said in a statement.
 
To achieve these objectives and compensate for the cost requirements, the company must sign a favourable agreement with the workers. If the company and workers’ union fail to reach a desired conclusion, Harley-Davidson will shift its plant to another state with favourable labor contract. The last date for the agreement is mid-September 2010.
 
It should be noted that Harley-Davidson also operates a large manufacturing plant in York, Pa.
 
The story could not represent the workers’ side as the officials of the machinists union were not available for comment.
 
In a statement released last April, the bike maker has said that $54 million in manufacturing costs must be cut from its Wisconsin plants. Harley-Davidson has seen a negative side in sales for two years. The company had undertaken a restructuring plan in early 2009. It shut down two factories and a distribution center, hundreds of employees were shown the exit, and the Buell line of sport bikes were discontinued.
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