View Full Version : Labor Trouble at the York Plant
02-01-2007, 10:55 AM
HD 2005 Profit - $959.6 Million
HD 2006 Profit - $1.04 Billion
And they're asking the Union for concessions.
Very interesting. This is the worst of capitalism. I believe this will give the board more ammunition to outsource even more Harley components overseas.
$40mil is a bit much for any CEO, but most of the profits go to the shareholders in dividends. If the shareholders don't get their piece of the action, the stock tanks and then they will be in a world of hurt. Profit, profit, profit. Vicious circle.
I have owned these since '81 and I am sickened to see in the last 10years or so, that The Motor Company has become nothing more than about money. The old Harley shops had alot of character and interesting characters about, to me now, they are too 'sanitized' and slick.
They've lost me. When I get bored of the '05FLSTN, that I payed way too much for, I won't be back.
02-01-2007, 03:35 PM
Harley's annual dividend is listed at $0.84 per share. With roughly 260 million shares outstanding, that's about $219 million paid out in dividends. Still not sounding like a company that needs Union concessions. If they're worried about future profitability like they say, they would tie the contract to profits, not ask for concessions.
Agreed. You did your homework. I would also suggest that CEO and board pay be linked to employee pay. If the average employee makes $40k(guessing) and the CEO makes $40mil+, that is 1,000 times more than average employee pay. Too much.
This is an ongoing problem in US companies. CEO of EXXON got $400mil+ and Home Depot $200mil+.
Then they want tax cuts.
02-01-2007, 04:53 PM
Harley usually has a reputation of being pretty good to its workers, I was a little surprised by the recent actions.
Just to be upfront, I have been on both sides of the union issue, I was a a Shop Steward in Local 1408 of the USWA, and have also represented the Personnel Dept. of a large city. But my loyalties lie mostly with the workers, especially when the issue appears somewhat one sided.
I was a little surprised at Harley also. 4% payraise and essentially 2% the other 2% for health insurance. There is no way they will even be keeping up with the CPI, let alone the real inflation rate. Like you I have also been at both ends. On a small scale.
Volvo/Saab mechanic and then business owner for 17years.
02-02-2007, 06:11 PM
Strikes usually hurt someone. I lost a distributing company once when UPS went on a summer long strike back in '77. I blame myself for not being prepared with alternate shipping. Everything was set up for UPS...COD. Since the strike was only in Pennsylvania distributors in other states took my customers. By the time I shifted to parcel post (many customers refused to deal with parcel post), it was too late. Now UPS has lots of competition so there's more choices.
The crazy increases of health insurance has reached the point of being unavailable to a growing segment of American workers. As an old guy with everything wearing out the future looks bleak. Harley is making a profit, that's great...Their workers are better paid than most in central Pa. Lets hope they settle quickly...the imports have copied their machines down to minute detail and build them with people getting no benefits and a fraction of the pay. It is only the good will and loyalty of the bikers that keeps Harley on top. By outsourcing they risk all.
"As an old guy with everything wearing out the future looks bleak."
Yeah, I am beginning to relate to that.:D
They're all set up and waiting for us. Replacement knees and hips, hair replacements, viagra, tummy and chin tucks, fibercon, pacemakers and 5 star nursing homes. I can hardly wait.
02-03-2007, 07:24 PM
This isn't exclusively HD. It's with most companies. Even the United Way's CEO was makng a killing... and that is based solely on donations.
I heard a manager at work make the comment a couple of years ago... "Keep squeezing until they start screaming".. he was refering to an internal budget struggle, but they do the same with thier employee's.
The situation is being handled correctly. The strike will cost everyone some money and in the end everyone will win a little a loose a little... and the customers will make up the difference for the company. We all have to fight for our rights...
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