Members of the International Association of Machinists and Aerospace Workers Local 176 and the United Steelworkers Local 760 voted in favor of a new collective bargaining agreement. The unions represent 685 workers at Harley-Davidson’s Kansas City vehicle and powertrain operations plant which produces Sportster, Dyna and V-Rod motorcycles.
The new agreement will be implemented in stages with initial effects kicking in Aug. 1, 2011 while other terms go into effect in August 2012 when the current labor agreement expires. The new labor deal is similar to previous deals accepted by unions at Harley-Davidson’s two Wisconsin plants.
Starting Aug. 1, 2011, the Kansas City workforce will be reduced by 145 jobs to 540 full time workers. Harley-Davidson will also create 145 flexible positions which will be called upon when needed. New compensation and benefit terms will take effect in August 2012.
Harley-Davidson expects to save $15 million in 2013, the first full year of the new labor agreement.
“Together with our unions, Harley-Davidson is making the necessary changes across all our production facilities to succeed in a competitive, global marketplace,” says Keith Wandell, president and chief executive officer of Harley-Davidson, Inc. “The Company is well on its way to building a world-class, sustainable, lean operating structure and I want to thank our employees at Kansas City for their participation in this journey. The ratification of the new contract will help ensure that we can continue to meet and exceed the expectations of our customers.”
H-D Reaches Deal with Kansas City Unions