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[Capo]

Harley: Layoffs begin

Union workers are losing their jobs, starting with the newest employees.
By BRENT BURKEY
Daily Record/Sunday News

Updated: 01/21/2009 05:08:14 PM EST


Harley-Davidson has begun permanently laying off workers at its facility in Springettsbury Township, the company said.

Spokesman Bob Klein said in a phone message the workforce reductions - part of a plan by Harley released in April to cut about 730 workers company-wide - would continue through the summer.

"That layoff process has begun and will be ongoing in stages," Klein said.

Klein did not say how many workers would be laid off in each stage.

He said the permanent layoffs would be within the parameters previously discussed by the company. Nearly 300 union workers were scheduled to be cut from the Springettsbury plant.

Tom Boger, business representative with the International Association of Machinists and Aerospace Workers Local 175, said Monday the union's role as layoffs go forward is to make sure they happen according to seniority.

The union's contract with Harley says layoffs have to happen by seniority, Boger said. He said the union would compile a list of those who get laid off and compare it to seniority records.

Boger said the union was not involved with Harley's effort to find early retirees to make up some of about 300 planned union job cuts for the Springettsbury Township facility.

Boger said the process was strictly between potential retirees and the company.

News of the reduction's start had began trickling out of the facility on Eden Road earlier this week.

Larry Bednar said on Monday that workers at the plant speak of themselves as "numbers from the bottom." He's been there about three years, so his number is about 350.

In other words, 350 people would need to lose their jobs before his would be cut.

Three years of experience is enough to worry Fred Wright Jr. His son has that much seniority on second shift and is a little worried about being on the bubble.

Worker Kerry Fritz, with a year and a half under his belt, said on Monday that he wasn't going to wait around.

Fritz believed he was going to be one of the workers being let go and said it wasn't right for a company to bring him on for a year and a half just to send him out the door.

"I just quit," Fritz said.

Michael Smeltzer, executive director of the Manufacturers' Association of South Central Pennsylvania, said the association will soon begin a worker-placement effort for employees displaced at Harley.

Smeltzer said the association will work with other area agencies to identify displaced workers and begin building a name-and-skills database to help funnel those workers to companies that are hiring.

Needs are often not immediate. Layoffs are emotionally taxing events, Smeltzer said.

"Many are just going to take some time off," he said.

[Texas 103]

Harley: Layoffs begin

Union workers are losing their jobs, starting with the newest employees.
By BRENT BURKEY
Daily Record/Sunday News

Updated: 01/21/2009 05:08:14 PM EST


Harley-Davidson has begun permanently laying off workers at its facility in Springettsbury Township, the company said.

Spokesman Bob Klein said in a phone message the workforce reductions - part of a plan by Harley released in April to cut about 730 workers company-wide - would continue through the summer.

"That layoff process has begun and will be ongoing in stages," Klein said.

Klein did not say how many workers would be laid off in each stage.

He said the permanent layoffs would be within the parameters previously discussed by the company. Nearly 300 union workers were scheduled to be cut from the Springettsbury plant.

Tom Boger, business representative with the International Association of Machinists and Aerospace Workers Local 175, said Monday the union's role as layoffs go forward is to make sure they happen according to seniority.

The union's contract with Harley says layoffs have to happen by seniority, Boger said. He said the union would compile a list of those who get laid off and compare it to seniority records.

Boger said the union was not involved with Harley's effort to find early retirees to make up some of about 300 planned union job cuts for the Springettsbury Township facility.

Boger said the process was strictly between potential retirees and the company.

News of the reduction's start had began trickling out of the facility on Eden Road earlier this week.

Larry Bednar said on Monday that workers at the plant speak of themselves as "numbers from the bottom." He's been there about three years, so his number is about 350.

In other words, 350 people would need to lose their jobs before his would be cut.

Three years of experience is enough to worry Fred Wright Jr. His son has that much seniority on second shift and is a little worried about being on the bubble.

Worker Kerry Fritz, with a year and a half under his belt, said on Monday that he wasn't going to wait around.

Fritz believed he was going to be one of the workers being let go and said it wasn't right for a company to bring him on for a year and a half just to send him out the door.

"I just quit," Fritz said.

Michael Smeltzer, executive director of the Manufacturers' Association of South Central Pennsylvania, said the association will soon begin a worker-placement effort for employees displaced at Harley.

Smeltzer said the association will work with other area agencies to identify displaced workers and begin building a name-and-skills database to help funnel those workers to companies that are hiring.

Needs are often not immediate. Layoffs are emotionally taxing events, Smeltzer said.

"Many are just going to take some time off," he said.

MILWAUKEE – Harley-Davidson Inc. says it will cut 1,100 jobs over two years and scale back its operations as its fourth-quarter profit slid amid the weak motorcycle market.

Harley says it will consolidate two engine and transmission plants in Milwaukee into another Wisconsin facility. It will shrink its paint and frame operations at its York, Pa., plant and close a distribution facility in Franklin, Wis.

The company also says it will end its domestic transportation fleet, and plans a 10 percent to 13 percent reduction in shipments for 2009.

Harley says earnings fell 58 percent to $77.8 million, or 34 cents per share, from $186.1 million, or 78 cents per share, last year. Sales fell 6.8 percent to $1.29 billion.

Analysts expected earnings of 57 cents per share on sales of $1.29 billion.

Just caught saw this...Greg

[hard10]

" As part of the employee reductions, Harley-Davidson said it'll reduce its manufacturing floor space:

    *
      Consolidate its two engine and transmission plants in the Milwaukee area into its facility in Menomonee Falls, Wis.
    *
      Consolidate paint and frame operations at its assembly facility in York, Pa.
    *
      Close its distribution facility in Franklin, Wis., consolidating Parts and Accessories and General Merchandise distribution through a third party.
      End of Story

Steve Gelsi is a reporter for MarketWatch in New York."

[Gone Fishin']

Guys, hold on to your bikes!

Ride safely,
Louis

[AZSSE]

here's a quote from Yahoo.com new this morning "NEW YORK – Harley-Davidson Inc. said Friday it will cut 1,100 jobs over two years, close some facilities and consolidate others as it grapples with a slowdown in motorcycle sales.

The Milwaukee-based company also reported its fourth-quarter profit fell nearly 60 percent, and said it is slashing motorcycle shipments in 2009 to cope with reduced demand.

The iconic motorcycle maker said it will consolidate two engine and transmission plants in Milwaukee into its facility in Menomonee Falls, Wis. It will shrink its paint and frame operations in its York, Pa., plant and close its distribution facility in Franklin, Wis., whose duties will be handled by a third party.

Harley also is exiting its domestic transportation operation — its fleet of long-haul truckers who transport parts between manufacturing facilities — and outsourcing duties to a third party. The cuts make up slightly more than 10 percent of the company's total work force.

"Harley-Davidson is not immune to the current economic conditions," said Jim Ziemer, the company's outgoing chief executive, in a conference call. "We're going to show great discipline in protecting the value of the brand."

The company said the cuts include 800 hourly production positions and 300 non-production, mostly salaried positions. It said 70 percent of the job cuts will occur this year and the rest in 2010."

Wow !! - here we go.

[dps4]

Good news-I think. I read today that Honda does not want to take over Harley -at any price.

[hdbrad03]

This will also mean tougher times squeezing Warranty Dollars out of the MOCO. They will fight every claim and we will spend longer time on hold trying to talk to customer service.

 
     Brad

[hard10]

This will also mean tougher times squeezing Warranty Dollars out of the MOCO. They will fight every claim and we will spend longer time on hold trying to talk to customer service.

 
     Brad

Were you over at the WSJ?

"07CVOHOG 9 hours ago -4 Votes (3 Up / 7 Dn)
 
I guess warranty claims are more likely to be denied now."

[hard10]

I had to copy & post this. It is a very well written, interesting and in depth article.

" The stock  (HOG:Harley-Davidson, Inc) managed to bounce off the lows of the session but still ended down 90 cents at $11.50, putting its decline in the past year at 72%.
Harley also disclosed plans to take one-time charges of approximately $110 million to $140 million over 2009 and 2010. The effort will produce ongoing annual savings of approximately $60 million to $70 million.
"We have a strong core business anchored by a uniquely powerful brand, but we are certainly not immune to the current economic conditions," CEO Jim Ziemer said in a statement.

The cutbacks are expected to result in the elimination of about 800 hourly production positions and 300 non-production, primarily salaried positions over 2009 and 2010.
About 70% of the workforce reduction will take place this year.
Harley said earnings for the three months ended Dec. 31 dropped to $77.8 million, or 34 cents a share, from $186.1 million, or 78 cents a share, a year earlier.
The Milwaukee-based manufacturing firm missed the target of 57 cents a share in a survey of analysts by FactSet Research.
Revenue fell to $1.29 billion from $1.39 billion.
"Some of this report was in line with our expectations ... but the shocker was the mix shifting so much," Edward Jones analyst Robin Diedrich said. "The people that are buying are clearly avoiding the more expensive, higher margin bikes and buying the cheaper ones.
Harley retail sales in the U.S. dropped 19.6% in the quarter while the overall heavyweight motorcycle market plunged 25.5%. Worldwide, Harley sales fell 13.1% despite a near-1% increase in international markets.
For 2009, Harley is projecting shipments of between 264,000 and 273,000 new motorcycles, marking a 10% to 13% reduction from 2008.
"This slump is largely out of Harley's control at this point," Diedrich said. "It comes down to the global economy and we expect 2009 to be very without much of a rebound in the second half of the year."
To help cope with the downturn, Harley said it'll merge two plants in the Milwaukee area into another in Menomonee Falls, Wis. and consolidate paint and frame operations in York, Pa. Harley will also close its distribution facility in Franklin, Wis.
"We obviously need to make adjustments to address the current volume declines," Ziemer said. "But we are also determined to do that in a way that will make us more competitive for the long term."
Harley's lending unit was also slammed by the credit crisis and is looking at a "range of options" to obtain the liquidity it needs to fund loans to customers.
The division said it swung to a loss of $24.9 million -- a $63.5 million turnaround because of write-downs stemming from higher project credit losses. End of Story
Shawn Langlois is a reporter for MarketWatch"

[BMF-110]

Saw on the news this morning 1100 lay-offs and slashing production by 13% for next year!!

[mr_magoo]

Just a sign of things to come.

[Boatman]

I truley feel sorry for the people who are losing their jobs.  The sad truth is that they were not probably needed in the first place.  I live near the Honda goldwing Marysville plant and have been thru the plant twice and the York plant once.  Any American company could take a lesson from the Japanese in how to run a factory.  The Goldwing plant has less workers doing more and getting an honest living.     

Hope you guys don't rip me too bad.

[hard10]

I truley feel sorry for the people who are losing their jobs.  The sad truth is that they were not probably needed in the first place.  I live near the Honda goldwing Marysville plant and have been thru the plant twice and the York plant once.  Any American company could take a lesson from the Japanese in how to run a factory.  The Goldwing plant has less workers doing more and getting an honest living.     

Hope you guys don't rip me too bad.

Why would anyone "rip" you Bob? What you said were the facts. If a plant has idle workers it is only costing the company money. A factory has to expand and contract according to economic situations. If you were referring to Honda being a Japanese company, the are as American as any other manufacturer that builds their product in the US. I was talking to a friend of mine yesterday who lives in Hardeeville, SC and owns a silver '09 SERG and drives a Toyota Tundra Truck (TN  ). The Tundra is probably more American made than most others. I'm sure the Goldwing plant employed local people?

[Hoist!]

Why would anyone "rip" you Bob? What you said were the facts. If a plant has idle workers it is only costing the company money. A factory has to expand and contract according to economic situations. If you were referring to Honda being a Japanese company, the are as American as any other manufacturer that builds their product in the US. I was talking to a friend of mine yesterday who lives in Hardeeville, SC and owns a silver '09 SERG and drives a Toyota Tundra Truck (TN  ). The Tundra is probably more American made than most others. I'm sure the Goldwing plant employed local people?

Aren't we comparing years and years of Union shop for HD vs. non-union factories for Honda? Unions do make it tough on companies to implement these kinds of changes to the manufacturing procees. Sometimes to the point that the company's only choice is to shut down the plant and open another non-Union plant in another state, just to stay competitive. I don't defend HD much, but they've stayed loyal to the York Union plant thus far. Just sayin!

Hoist!

[Gone Fishin']

Why would anyone "rip" you Bob? What you said were the facts. If a plant has idle workers it is only costing the company money. A factory has to expand and contract according to economic situations. If you were referring to Honda being a Japanese company, the are as American as any other manufacturer that builds their product in the US. I was talking to a friend of mine yesterday who lives in Hardeeville, SC and owns a silver '09 SERG and drives a Toyota Tundra Truck (TN  ). The Tundra is probably more American made than most others. I'm sure the Goldwing plant employed local people?

If I understand the communication from Harley correctly, some 300 of the people laid-off belong to the trucking division, which Harley has been operating themselves (very unusual) and is now outsourcing. Since the bikes have still to be trucked around the country, I guess most of these people will change employer, but may stay employed after all. Typically, however, their income will suffer. The question is, if a severance package is offered, and how much that'll be able to compensate.

By the way: back in Business School we discussed a Harvard case study on multinational companies, and there was a tractor manufacturer with an old-fashioned English name located and producing in Japan, and another tractor manufacturer which had a Japanese name, while the tractors were manufactured entirely in California. I don't remember the details, however.

And: Honda's Goldwing production is transferred 100% to Japan in 2009. The current facility in Ohio will build only cages then.

Ride safely,
Louis