The Harley Impact - (Un)Intended Consequences

As I was perusing the comments from the two Harley Davidson articles I posted here and here, the last one from “T. Strain” was so well written that it deserved some attention…so here it is:

I say congradulations to the HD employees on strike. Because of them complaining about a small increase in health benefits, countless other people are being laid off at other companies that make products for Harley. I don’t know if anyone knows, but Harley does not make their motorcycles by themselves completely. A majority of the aluminum engine components are made by several aluminum factories in the US. Due to the strike, Harley has stopped ordering these parts. At some plants, (namely the one I work at) Harley is about 20-30% of our business. So about 60 of my fellow workers, friends, and fellow americans are now OUT OF A JOB! Uh, and this whole time I was under the impression that unions were formed to help protect american jobs. Thanks to the union workers at Harley, an ENTIRE plant that helps support a middle sized town in Missouri, has nearly halved their staff and may close down completely if the strike progresses too long. I am in complete awe that an organization that was initially formed to help is now the reason why jobs are being lost in a second, why companies are being forced to go overseas to provide the same product at a lower cost that is being demanded by the public! And the people blame Bush for this! Ha, wake up, the reason there are not any good jobs left is because the average joe is either to lazy to work for a decent wage, or they think they are underpaid for a job that they are really already being overpaid for.

Comment by T. Strain | February 12th, 2007 11:22 pm | Permalink | Edit Comment

Herein lies the problem.  The “brotherhood” as its called, has a reach that extends way beyond its factory walls.  It reaches into plants where the management and workers actually have a good relationship.  It reaches into the pockets of many workers outside of York, PA who likely have nowhere near the sweetheart benefits deal that the HD employees have (current or proposed). 

Care should be taken as Pennsylvania has a higher unemployment rate, well above the national average.  It has become a popular trend for management to stick to fiscal discipline and bring in replacement workers (Detroit Free Press & Northwest Airlines come to mind) to get things going again.  Time will tell I guess.

Oh, and finally it does reach to your ‘brothers’ within the company:

Harley-Davidson lays off 440 in Wis. because of strike in Pa.

MILWAUKEE — Harley-Davidson Inc. laid off 440 employees in Wisconsin yesterday because of an ongoing strike in York, Pa., at the company’s largest production plant.

Some 240 employees were laid off in Tomahawk, said a spokesman for the Milwaukee-based motorcycle maker. About 200 were laid off at other plants in Wisconsin as well, he said.

The layoffs were both voluntary and forced, he said, though he declined to say how many were forced. He said it’s unclear when the employees will be allowed back to work at the plants, where parts such as engines and windshields are made.

Last week, Harley said the strike would cause it to miss shipment expectations for the first quarter. The company had expected to ship between 82,000 and 84,000 bikes during the first three months of the year. Harley declined to provide updated shipment expectations for the first quarter and would not say whether the strike will have an effect on financial guidance for the full year.

Some 2,800 workers have been striking since Feb. 2 at the York plant, where top-selling Touring and Softail bikes are made.

Members of the International Association of Machinists and Aerospace Works, Local 175, overwhelmingly rejected a three-year contract proposal, which offered annual raises of 4 percent, but would have reduced pay for new hires, required employees to begin paying part of their health insurance premiums, and forced pension concessions.

One has to wonder of the brotherly love that is available in Wisconsin towards the York folks.  One also has to wonder where the future development money will come from to make new motorcycles if the profits take a substantial hit.  What profits will the unions be able to go after?  And once again, I ask who the hell would want to work there after the dust settles.  Most important, will the quality of the machinery, the brand loyalty, and/or the good will take a hit?  In the short-sighted world of strikes, I seriously doubt that any of those have even been considered.  I know, I just want to have my cake and eat it too.

4 Comments

I could not have said it better.

If the employees in York feel they are underpaid, no law stops them from working where they will be paid what they are worth.

Secondly, the employees in York have no right to keep others from working for Harley at $18+ per hour. In other words, I may hate such and such car and would never buy it, however, I have no right to keep you from buying such and such car.

Excellent article!

God Bless You!

Comment by Robert | February 14th, 2007 7:24 am | Permalink

Robert, you may be more on track than you know. Those striking at York may end up at different jobs anyway. I would like nothing better than to see HD hire “scabs” full time and just leave those on strike out in the cold. They’re making good money with good bene’s and are just being selfish.

It’s not fair what they’re doing to the other people who are affected (layed off) because of these selfish strikers.

Matt
Suite101.com

Comment by Matt | February 15th, 2007 12:56 pm | Permalink

I have to agree most groups that go on strike end up having more of a negative impact on others then what they were ever suffering from. I have seen were unions can serve a good purpose, but they seem to spend more time building discontent against the groups they are suppose to be protecting. I say if your are as good as you think you are, and the company you are working for is treating you unfairly, quit your job!!!! If you are worth so much more then any other company in North America will be glad to give you a job.

Comment by JJ Rider | February 15th, 2007 8:06 pm | Permalink

That’s part of the point, JJ: the unions have to carry “dead weight”. Those that are doing a crappy job (or an unskilled job) get paid good money to do it, (or not do it in this case), and those that ARE more qualified and ARE doing the difficult work are not getting paid what they could be at a company that didn’t have to treat everyone the same. Everyone is NOT the same, and not everyone deserves to get the pay they get. By the same token, those few that DO deserve better pay, are held back.

Unions had thier place, but not any more IMO.

Comment by Matt | February 16th, 2007 9:16 am | Permalink

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