Milwaukee Biz Journal
Harley-Davidson Inc. said Tuesday that it will keep production operations in Wisconsin, following Monday's contract votes by the company's Wisconsin unionized employees.
Unions representing Harley-Davidson production workers in Menomonee Falls and Tomahawk ratified three new seven-year labor contracts. All three will take effect in April 2012 when the current contracts expire.
The contracts include a number of concessions, including a wage freeze and work force reductions in both Menomonee Falls and Tomahawk. In all about 325 full-time employees will be cut, with seasonal demand to be picked up by seasonal workers.
Based on the new ratified labor agreements, the Milwaukee-based motorcycle manufacturer expects to have about 700 full-time hourly unionized employees in its Milwaukee-area facilities when the contracts are implemented in 2012, about 250 fewer than would be required under the existing contract. In Tomahawk, the company expects to have a full-time hourly unionized workforce of about 200 when the contract is implemented, about 75 fewer than would be required under the current contract. The contract will allow for 150 to 250 seasonal employees to cover seasonal volume spikes, vacations and other absences.
Full-time hourly employees will be moved to the same health benefits plan that salaried employees have and will keep a non-contributory defined benefit pension plan at current benefit levels funded entirely by the company.
"Change is never easy, and we have asked our employees to make difficult decisions. However, we are pleased to be keeping production operations in our hometown of Milwaukee and in Tomahawk," said Keith Wandell, president and CEO. "Together, we are making the necessary changes across our entire company to succeed in a competitive, global marketplace while continuing to meet and exceed the expectations of our customers."
The company said the new contracts are expected to generate about $50 million in annual operating savings in 2013, the first full year of the agreements.Halrey expects about $85 million in new restructuring charges becuase of the contracts through 2012. About $55 million will be cash charges.
When fully implemented, Harley-Davidson (NYSE: HOG) expects previously announced restructuring activities, together with the implementation of the new contracts at the Wisconsin operations, to result in one-time charges of $515 million to $545 million, and annual ongoing savings of $290 million to $310 million. In 2010 on a combined basis, Harley-Davidson expects to incur restructuring charges of $225 million to $245 million and to generate related savings of approximately $135 million to $155 million.
Unions representing Harley-Davidson production workers in Menomonee Falls and Tomahawk ratified three new seven-year labor contracts. All three will take effect in April 2012 when the current contracts expire.
The contracts include a number of concessions, including a wage freeze and work force reductions in both Menomonee Falls and Tomahawk. In all about 325 full-time employees will be cut, with seasonal demand to be picked up by seasonal workers.
Based on the new ratified labor agreements, the Milwaukee-based motorcycle manufacturer expects to have about 700 full-time hourly unionized employees in its Milwaukee-area facilities when the contracts are implemented in 2012, about 250 fewer than would be required under the existing contract. In Tomahawk, the company expects to have a full-time hourly unionized workforce of about 200 when the contract is implemented, about 75 fewer than would be required under the current contract. The contract will allow for 150 to 250 seasonal employees to cover seasonal volume spikes, vacations and other absences.
Full-time hourly employees will be moved to the same health benefits plan that salaried employees have and will keep a non-contributory defined benefit pension plan at current benefit levels funded entirely by the company.
"Change is never easy, and we have asked our employees to make difficult decisions. However, we are pleased to be keeping production operations in our hometown of Milwaukee and in Tomahawk," said Keith Wandell, president and CEO. "Together, we are making the necessary changes across our entire company to succeed in a competitive, global marketplace while continuing to meet and exceed the expectations of our customers."
The company said the new contracts are expected to generate about $50 million in annual operating savings in 2013, the first full year of the agreements.Halrey expects about $85 million in new restructuring charges becuase of the contracts through 2012. About $55 million will be cash charges.
When fully implemented, Harley-Davidson (NYSE: HOG) expects previously announced restructuring activities, together with the implementation of the new contracts at the Wisconsin operations, to result in one-time charges of $515 million to $545 million, and annual ongoing savings of $290 million to $310 million. In 2010 on a combined basis, Harley-Davidson expects to incur restructuring charges of $225 million to $245 million and to generate related savings of approximately $135 million to $155 million.
