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I guess I don't have too much of an opinion on this story. I understand we live in a world today where companies need to be competitive and lean and that there's an obligation to shareholders to derive the best return on their investment, but to see a company that's doing pretty well continue to lay people off who are in good paying, middle class jobs in favor of part time, lower skilled, easily replaceable workers just kinda......bums me out.
Harley offers voluntary layoffs in Wisconsin (Reuters) - Harley-Davidson Inc is offering voluntary layoffs to hourly workers at three plants in the Milwaukee, Wisconsin area to reduce staff by about 26 percent, giving itself flexibility to hire seasonal workers.
The company began making requests for the voluntary layoffs the week of December 5. Workers have until December 23 to decide. It makes motorcycle engines and parts at the plants.
Harley-Davidson's plan for the layoffs was first announced in September 2010 as part of a new seven-year contract with about 950 union workers. It plans to lay off about 250 workers as of next April and hire 150 to 250 temporary employees for seasonal production spikes.
While Harley-Davidson's hourly workers are not paid a set salary, they are considered part of the company's overall headcount and are protected by union contracts that require negotiations on a variety of matters, including downsizing or changes to benefits.
Harley-Davidson spokeswoman Maripat Blankenheim said the company would wait until the December 23 deadline before deciding whether to implement involuntary layoffs.
Harley-Davidson, based in Milwaukee, has been retooling several aspects of its business since Keith Wandell became chief executive in 2009. In addition to restructuring its workforce and factories, the company has begun focusing on attracting a wider range of buyers in the United States and emerging markets.
It expects to save $50 million annually starting in 2013 due to changes in its contract with Wisconsin workers.
Workers affected by the contract are represented by the United Steelworkers and International Association of Machinists and Aerospace Workers. Harley-Davidson has manufacturing sites in a handful of Wisconsin cities, including Wauwatosa, Tomahawk and Menomonee Falls.
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I guess till the product itself suffers from faulty production or they cannot attract skilled workers the trend will continue.