Gov. Ed Rendell said at the Save Our Plant Ride & Rally this afternoon that the effort to keep Harley local is looking for a $15 million allocation for capital improvements, as well as cash to help train workers. There would also be low-interest loans available.
"We've got a tough fight ahead of us," he said.
He also said that the Harley plant is important for the supply chain that make parts for the plant, as well as restaurants and hospitality industry, and for the tax base.
Rendell said that Harley either needs a new plant or a refurbished plant, and that it's going to cost money. And he said that lawmakers are going to put together a "highly competitive" plan.
"We are going to beat back the challenges of those three states," Rendell said, referring to the three challengers he has previously mentioned for the Harley operation.
He was met initially by a combination of boos and cheers.
Some of the other public officials in attendance on stage included: U.S. Congressman Todd Platts, all three York County Commissioners, Sen. Mike Waugh, Sen. Lloyd Smucker, York Mayor John Brenner and state Rep. Eugene DePasquale.
The words followed a video profiling what Harley means to the county, including images of President George W. Bush and President Bill Clinton.
Have your rally, have some fun, burn some gas. However, in the end, all of this emotional begging will likelt mean little. The decision whether or not to close the plant in York, will undoubedtly be made by bean counters and corporate mogals, many of whom have never even ridden a motorcycle, yet alone a Harley. (yeah, they're slow and heavy, but they are fun) It's a Global Economy you know. The incentives to go to new climes, likely Southern, will be too strong to overcome the realities of (the new buzz word) "sustainability". Oh sure,...the Harely brand won't go away, but the plant in York will. Most likely, given a little time, they'll probably even produce better quality bikes (the new plant will certainly be more automated)hopefully lowering the price, so that the large bikes no longer rival the price of a high end Honda (car), and management will be grinning ear to ear, that the same guy who welds can now empty the trash cans if needed, or work in the paint shop. In other words, a non unionized work force. And all of this for far fewer dollars per hour at their new digs.
So, have your fun, burn some gas, and wave goodbye to the plant. It's a Global Economy you know.
York resident and Harely owner.
Feel free to blame the union if you need to.
Supposedly the York union has been willing to accept the same union contract as Harley's Milwaukee Facility.
The sticking points are job outsourcing and the want of a larger plant.
Harley only wants to assemble bikes in York and slap a sticker on the gas tank and call them Union Made. Currently they already outsource much of their manufacturing to non-union shops here in the states and in Mexico. Lincoln Plating one of their larger vendors pays ~$12hr. Now they want all remaining non-core manufacturing outsourced, which would account for roughly 600 more jobs here at York. That would only leave around 1000 assembly jobs versus the 3000 that previously existed.
Second, they want to build a $100M+ addition to their newer Softail Plant to streamline the remaining 1000 jobs that would be left under one roof. They want Pennsylvania to help them finance it. Their entire operation was more or less already under one roof until they built their new softail plant, separating the assembly of their Softail and FL models in 2003.
Harley also turned $20M in profit last quarter during the worst recession in a century. This was thanks to a one time $100M finance charge, or they would have made $125M. They are used to making $250M. They bought back ~$1.5B worth their own stock 2006 through 2008. They bought Italian motorcycle manufacturer MV Augusta for $100M in 2008. They opened a new $75M museum in Milwaukee in 2008. Rest assured they will again make $1B+ per year once again in the near future.
Those are the facts. Come to your own conclusion on why they want to move. Feel free to blame the union if you need to.
I don't see anyone here, "blaming" the union. Perhaps comments to that affect were made at todays' rally,....that's the easy way out. As for accepting a same or similar contract as Milwaukee, what is that anyway ? The company, as do all large greed driven operations, really wants total flexibility with the work force. Why negotiate at all, other than on a one to one basis, like the majority of remaining operating companies. No, it may not really be the union to blame. But I do think we would all agree that we can blame almighty corporate greed.