Union employees at Harley-Davidson Inc. will vote today on labor contracts that could determine the fate of their jobs and Harley’s production facilities in Wisconsin. The seven-year contract could cut hundreds of full-time employees. Harley says it needs to cut over $50 million dollars in labor costs at its plants in Menomonee Falls and Tomahawk. If the Steelworkers union does ot approve the new contract, Harley says it will close the two Wisconsin plants and move the production out-of-state where it is cheaper.
Harley says the new deal would cut 200 full-time jobs at the Menmonee Falls engine plant, and 75 jobs in Tomahawk. It would also freeze the pay of the remaining full-timers starting in 2012. And it would let Harley use lower-paid seasonal workers to adjust to market conditions. They’d make just over half of what the full-time workers get, with no fringe benefits. The use of so-called “casual” workers has been a growing trend in large industries. Laura Dresser of the UW Center on Wisconsin Strategy says some companies have found it necessary, while others are just boosting profits – or keeping up with competitors who have cut health insurance costs by hiring seasonal workers.