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Harley-Davidson Keeping Operations in Pennsylvania

12/03/2009
Motorcycle maker Harley-Davidson will keep its operations in York, Pennsylvania, and will invest about $200 million for restructuring. The company says in a statement that workers at the plant, represented by the International Association of Machinists and Aerospace Workers, have approved a new labor agreement that will allow the company to pursue the restructuring plan and related funding at the facility. The Associated Press reports that the company was planning to move the Pennsylvania operations to Kentucky. "A restructured York operation will enable the plant to be competitive and sustainable for the future, and the new labor agreement is critical to making that happen," says Keith Wandell, Harley-Davidson's president and CEO. "On behalf of the company, I want to thank the employees at York for their vote to make the changes necessary to create a more flexible and efficient operation, and we look forward to moving ahead together to achieve that goal." The company will cut its work force at the plant over the next three years, from 1,950 employees to about 1,000, including 700 to 800 unionized employees and 150 salaried employees. The state has offered Harley-Davidson approximately $15 million in incentives for capital improvements and training.

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