Harley-Davidson tells workers it needs to cut millions in costs

[boomerbust]

Source: jsonline.com

Harley-Davidson Inc. (HOG) is seeking to cut millions of dollars in costs from its Milwaukee manufacturing operations, or those operations could be moved elsewhere, the company told employees Thursday.

At risk would be hundreds of jobs at the company's factory on Pilgrim Road.

In a meeting with employees, company officials said there were significant "cost gaps" that must be filled.

"Our preference is to keep the production operations in Wisconsin, but as part of due diligence we will also explore alternate U.S. sites, should we be unable to achieve the kind of concrete workable solutions," that are necessary, company spokesman Bob Klein told the Journal Sentinel.

The employee meetings are continuing throughout the day.



Read more: http://www.jsonline.com/business/92418964.html

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The Great American Motorcycle. Right

[proudohioan]

1. Words escape me........ n/t

[RKP5637]

2. Obama can't solve stuff like this, none can until the global labor markets

level out. The equations are broken for labor/manuf cost versus bottom line profit ... versus cheap labor in another country.

Our entire economic system needs retuning for the 21st century, but we will never see that here 'till the entire economy crashes again or the cornered wealth is fed up with the stench of poverty across the entire US. Any attempt to fix it will be met with the idiot factor of the US screaming socialism.

[Lagomorph]

18. You make a good point.

It's damn difficult to balance private vs public wealth.

Concentration of wealth is necessary for big projects. Even if it's just to deal with government regulations, it often turns into billions of dollars. That's what Wall Street is supposed to do, focus resources and come up with private sector solutions for our economic needs.

The problem I've seen with government control is that the money doesn't stay on the street. In government controlled economies, the money comes from the government and goes right back to the government. In a free market, the money bounces around for a long time before it goes back to the government. That's where the 14 trillion dollar economy comes from. The government gets a cut of every transaction, the marketers get their cut and on and on.

Unfortunately, government entitlement programs don't bounce very well. They get discounted or recovered far too rapidly to make any economic contribution on the street level, where we all live.

Before the system got gamed to death, every consumer transaction contributed to our wealth rather than diminished it. You bought something and your neighbors benefited. You could talk to your banker and expect good advice. They didn't just worry about their bottom line. Now it's just about what product they offer that will soak up your disposable income.

It used to be that you could get 5% on your savings account. Now it's 1% or less, while we pay through the nose for loans.

[Seedersandleechers]

3. "will also explore alternate US site"

Yeah right.

[SocialistLez]

9. A "right-to-work state" maybe?

I don't know how unionized their workforce is, if at all.

[madmom]

11. Really doesn't matter how unionized they are if the company moves to

a right to work (for less) state. Ask GM employees.YA capitalism!!!!

[RKP5637]

12. So true, as far as I know the unions in this situation have little leverage if

they pick up operations and move to another country with cheap labor. Unbridled capitalism is obsolete but then you get the idiotic screams of socialism when other alternatives are suggested. This country is its own worst enemy IMO, time after time after time...

[HillbillyBob]

24. Well not being able to keep the old hog due to maintenance costs

and dwindling paycheck for more hours....

HD can suck it. If they move to another country to try to boost their profits (yea i have heard the hype that they care) they will put themselves out of business.

Love the sound and ride, but next bike will be something affordable like a Yamaha, if ever. Shoot I cannot afford to get the truck we already own a new motor.

[boomerbust]

4. A year ago

200 jobs were shipped to Mexico from this plant.

[Boxturtle]

5. Harley's York plant was just the initial shot

The union should have went on strike company wide. Now, Harley will pick off each plant one by one with the same threat of plant relocation.

[Mika]

6. How do you think retirement investment funds get used?

This is that great entrepreneurial spirit of America! We're still going west, young man. All the way to the east.

:puke:

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[StopTheNeoCons]

17. HD has already built a plant in Brazil,

was supposed to be for foreign bikes only, you can be sure they will ramp up building bikes for export to the USA any time now.

[POAS]

7. "due diligence", I hate that phrase.

In my experience it usually translates to "the working stiff is about to get the shaft"!

[proudohioan]

8. I do too....

along with the phrase "in order to remain competitive..."

These phrases are starting to make my blood boil!
:grr:

[SocialistLez]

10. If they want to be honest

they should just say, "In order to satisfy our shareholder's greed...."

[proudohioan]

14. You know, at this point, I wish they WOULD just come out and say that..

cuz frankly, I don't think anyone is buying those BS lines about "cost-cutting" and the like. We all know what they mean; why the fuck sugarcoat it?

That kind of refreshing honesty might be just what this country needs!

[RKP5637]

19. Yep, they always say the same crap. I wish they would get a different story line. n/t

[proudohioan]

22. Wouldn't it be nice....

if any time a corporation "downsized" or cut hours/wages, the CEO or President of the company would be REQUIRED to get up before a live audience (televised, of course) and tell the world that they are greedy bastards and they are "downsizing" for the sake of their own bank accounts and bloated egos.

An exception would be made if the company in question could prove that it is truly in dire straits.

Before anyone bashes me for the obvious flaws, this is strictly fantasy!

:evilgrin:

[RKP5637]

25. Yep, strictly fantasy, but it sure would be nice. I've worked for 5 larges companies

over the years that went under and as usual the CEO, directors and all waltzed off into the sunset loaded with their zillions of dollars while the rest of us tried to figure out how to scrape by 'till the next job, if one. When I was young a long time ago the companies tried to partner with you, wanted long term loyal and dedicated employees, now most of them don't give a damn. I'm sure there are still some good companies, but IMO they are now few and far between.

[SocialistLez]

26. +1

"We're downsizing because my wife wants a new Range Rover and a new summer home. Our kids are starting college and we need to send them to the most expensive one and of course give them oversized SUVs. This was a hard decision for us. We even had to let go over the maid Maria. We just couldn't afford to keep paying her $10 per hour. Please understand this is a VERY difficult decision for us. In the end though, our greed won. We're kind of sorry."

[DrDan]

13. visited the KCMo plant last fall - at least one line was shut down at that time

due to the economy.

New motorcycles are not a priority for the unemployed - and there are just too many of them.

[cloudbase]

15. H-D management is stupid.

They just outright closed down Buell when they had offers to buy the company. Look for shareholder lawsuits in the near future.

Maybe AMF will buy H-D and show 'em how it's done.

[Dappleganger]

21. +1000

[liberation]

16. "Never take advice about tightening your belt, from a fat man wearing suspenders"

Because it means you are the one getting skinnier...

I heard a very wise man once say that. It describes the current state of affairs in this most virulent form of Capitalism we've been unfortunate to suffer for the past few decades.

[RKP5637]

20. IMO capitalism today is getting pretty crappy and I think it's

going to get worse and worse... what we have now is just plain ripoff-ism and greed-ism.

[hootinholler]

23. What??? I thought the employees bought the company from BASF?

:shrug:

-Hoot

[rucky]

27. Hey, it worked for Hugo Boss

workers took a 20% pay cut to stay working, after they threatened to leave.