09/17 12:31A (DJ) DJ Harley-Davidson Plans To Shut Some Plants For One Week
>HOG
Story 0070 (HOG, I/AUT, I/XDJGI, I/XFFX, I/XISL, I/XNYA, I/XSP5, N/DJEN...)
YORK, Pa. (AP)--About 2,800 Harley-Davidson Inc. (HOG) workers will be idled
for a week this fall when the company temporarily closes its York County
plant.
The Milwaukee-based motorcycle maker, which continues to face low dealer
sales, told workers that it will shut down its assembly plants in
Springettsbury Township and Kansas City, Mo., for the week of Nov. 26.
Harley-Davidson will also shut down three operations in Wisconsin that week,
the company announced Friday.
The company will not pay its employees during the shutdown but will continue
their health care coverage, company officials said. All laid-off workers will
be recalled after the shutdown.
Harley-Davidson expects third-quarter shipments to total between 86,000 and
88,000 motorcycles. Previously, the company had expected to ship between
91,000 to 95,000 motorcycles in that period.
"The company regrets the temporary impact the shipment reduction will have
on so many of its employees as well as its dealers, suppliers and customers,"
company spokeswoman Rebecca Bortner said in an e-mail. "The company believes
this solution is the best option for balancing the needs of our stakeholders
while doing what's right for the long-term prosperity of the company."
Earlier this year, workers at the Springettsbury plant went on strike for
three weeks when contract negotiations fell through. Workers approved a
three-year contract on Feb. 22.
09-17-07 0031ET
Copyright (c) 2007 Dow Jones & Company, Inc.