Wisconsin is giving Harley-Davidson $25 million in tax credits to preserve jobs at its factories in the state. The deal saves about 1000 blue-collar jobs in the Milwaukee area and Tomahawk. Unions at the two plants voted last week to approve a seven-year contract that will freeze wages, result in a loss of 200 to 350 permanent jobs and allow the company to hire casual workers. These workers will be paid about half what full time workers make. Governor Jim Doyle and Harley-Davidson President and CEO Keith Wandell issued a joint statement Friday.
State provides credit to Harley
The governor created the Enterprise Zone Program as a business recruitment and retention tool. Wisconsin officials say their incentive package gives the company up to $25 million in Enterprise Zone tax credits over a nine-year period in exchange for keeping work here and making capital investments. The tax credits are linked to Harley’s employment levels, capital investments and purchases from more than 100 in-state suppliers. The company won’t get the full amount of credits if it does not meet certain requirements, according to Doyle. “Through hard work and cooperation, Harley-Davidson will keep its production operations open in Wisconsin, and keep hundreds of jobs in this state – both at Harley and their suppliers,” Doyle said. “This has been a challenging time for Harley and its great employees, and I want to thank everyone who came together in difficult circumstances to ensure this iconic Wisconsin company stays in Wisconsin.”
