H-D, Union Agree to Proposed Agreement
The new agreement is now awaiting approval from union members and the Harley-Davidson board. Workers at Harley-Davidsons factories in Menomonee Falls, Wis., and Tomahawk, Wis., represented by the United Steelworkers Local 2-209, the International Association of Machinists and Aerospace Workers Lodge 78, and the United Steelworkers Local 460, will vote on the proposed agreement on Sept. 13.
The proposed seven-year agreement, set to kick in April 2012, would create a two-tier labor force. Tier 1 consists of regular employees while Tier 2 will encompass new workers, rehired workers and those recalled from indefinite layoff for more than six months.
Tier 1 employees, would be paid $30.50 to $34.38 per hour while Tier 2 employees would earn $21.96 to $29.87 per hour in the first year of the agreement. Tier 1 employees will receive no general wage increases in years two to four. All employees on the payroll as of April 1, 2016 will receive a lump sum payment of $1,000 in year five while Tier 1 workers may receive wage increases in years six and seven.
Harley-Davidson currently has 1,340 active employees in Wisconsin, and had threatened to move its operations to another state if it could not reach a deal with the unions.
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