Harley’s troubles continue – York plant to shed half workforce

After the much publicised closedown of Buell, and the sell-off of MV Agusta, Harley-Davidson continues to restructure.

An Associated Press report today details the restructuring of the York plant in Pennsylvania.

The plans to restructure the plant will come as some relief to the workers there, as a statement in May stated that it was too inefficient and costly to continue to run. Relocation to Kentucky was favoured.

However, a package of concessions by unions which included wage freezes, increased health insurance contibutions by employees, and reductions in holidays led to workers agreeing to new contract terms yesterday.

The state also offered a $15 million incentive package of capital grants and training funds.

Harley will shut one of its two factories there, and will lay-off nearly half the 1950 workforce. About 120 of the 270 management staff are also set to loose their jobs.

Harley said that the smaller workforce will be more flexible, and lead to a more streamlined operation.