I think HD got what they wanted and the threat to move to Kentucky was hollow. Watch the quality of the bikes drop substantially for quite a while.....
http://www.google.com/hostednews/ap/article/ALeqM5h-D3sh_VzweWw6TMqEJ5sNbj8lLAD9CC512O0Thursday's decision came 24 hours after unionized workers at the York plant approved a contract that included concessions such as wage freezes, increased employee health insurance contributions and reduced vacation days. It brings to a close a process that began in May when the company said it would look to relocate a plant that is too inefficient and costly in light of steep sales declines.
Harley shares fell 95 cents, or 3.2 percent, to close at $28.62. Its shares have traded in a 52-week range of $7.99 to $30.
The company, based in Milwaukee, said the changes approved Thursday will cost approximately $200 million over three years, plus about $90 million in capital improvements at the York plant. But the savings should come to $100 million a year, it said.
As Harley sought union concessions, company officials visited sites in Kentucky, Tennessee and a couple other states in recent months to scout other potential locations for a new plant. A site in Shelbyville, Ky., had emerged as the favored alternative.
To encourage Harley-Davidson to stay, Rendell offered about $15 million in incentives while union negotiators agreed to a contract that workers viewed with distaste, but approved anyway.
"There are no jobs out there. I need my job," worker Joe Sinclair told the York Dispatch after the vote.
Harley said the smaller work force it envisions after the layoffs will be more flexible and correspond to a streamlined operation. Once finished, it expects to have about 1,000 hourly employees, including 700 to 800 full-time production and maintenance workers and 200 to 300 on-call employees.
Another 120 of the 270 management employees will be laid off, Harley said.