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[Master Guns]

http://xfinity.comcast.net/articles/finance/20111219/BUSINESS-US-HARLEY-LAYOFFS/

[sadunbar]

According to the local news, the MOCO started requesting voluntary lay-offs the first week of December - and started mandatory lay-offs today to reach a 26% hourly labor force reduction from the Milwaukee facilities.

[hogasm]

I thought they just announced that they could not keep up with demand

[muddypaws]

They can't build them right with the full time people. Just wait until they hire BOB for the summer who normally works at Walmart during the winter.....

[sadunbar]

They can't build them right with the full time people. Just wait until they hire BOB for the summer who normally works at Walmart during the winter.....

It's part of the contract that was negotiated when the MOCO was threatening to leave the state.  It allows for up to 26% labor reductions, more contract non-employee labor and more outsourcing.  So it won't likely be BOB for the summer...

[Eagle Eye]

Speculating here: 

Perhaps so they can ramp up production in India and China?   

First, earlier this year they enact trade restrictions on their fanchisees and 2nd party vendors, then this.

I'm sorry for those caught up in this at MoCo.  Anyone from the inside have info?

Seasons Best to all.

[napalm]

I traveled twice to Europe this year and visited many HD Dealerships, they have no inventory....why is the MC cutting back?

napalm

[CVOThunder]

Intentional reduction to drive up demand and product value?

[sadunbar]

I traveled twice to Europe this year and visited many HD Dealerships, they have no inventory....why is the MC cutting back?

napalm

I don't know that they are cutting back...  They're just cutting back on utilizing internal employees vs. outsourcing and hiring contract employees at lower wages and without benefits.  It's what was negotiated between the company and union when the company was threatening to close the Wisconsin plants and move out of the state - what was negotiated in 2010 is now being implemented.  And the MOCO got tax concessions from the state taxpayers as a bonus!

[Eagle Eye]

And the MOCO got tax concessions from the state taxpayers as a bonus!

Let me see if I've got this right.  MoCo is going to lay off taxpayers, but are going to get tax consessions?  What's wrong with this thinking?   

[Para Bellum]

...but if you believe the gov't and media, initial jobless claims have dropped to their lowest level in 3.5 years.  I thought that everyone who can be fired has been fired.

Of course, if you don't count the millions of people who have used up their unemployment benefits (which the Bureau of Labor Statistics doesn't), then you can make it look like U.S. unemployment has dropped to 8.6%...instead of being the 18+% it really is.

[Eagle Eye]

...but if you believe the gov't and media, initial jobless claims have dropped to their lowest level in 3.5 years.  I thought that everyone who can be fired has been fired.

Of course, if you don't count the millions of people who have used up their unemployment benefits (which the Bureau of Labor Statistics doesn't), then you can make it look like U.S. unemployment has dropped to 8.6%...instead of being the 18+% it really is.

X2 

They can make the numbers do whatever they want.  But the truth is as you said, they're off the rolls, either under-employed or unemployed without benefits. 

[justplainjim]

When employee morale goes down so does the product quality.

[Harley Guy]

Speculating here: 

Perhaps so they can ramp up production in India and China?   

First, earlier this year they enact trade restrictions on their fanchisees and 2nd party vendors, then this.

I'm sorry for those caught up in this at MoCo.  Anyone from the inside have info?

Seasons Best to all.

I did not know they had plants in India and China............  Do they?
If they dont, the above is just a "low hanging fruit" comment

[grc]

I did not know they had plants in India and China............  Do they?
If they dont, the above is just a "low hanging fruit" comment

I think if you do a search on this site you will find at least one thread that discussed the plant in India along with the plans Harley had to expand into that country as well as China and others.  Right now it's just assembly of KD kits shipped from the USA, but that is the same way many manufacturer's have expanded into other countries.  The US automakers started out that way in Mexico and South America, and now of course they build entire vehicles in those countries and ship them here, while eliminating hundreds of thousands of American jobs. 


Jerry