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Thursday, January 3, 2008

HARLEY DAVIDSON IDLES 5400 WORKERS

Harley-Davidson Idles 5,400 Workers
Troy Siahaan
Rider Report
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Due to falling sales, this week Harley-Davidson is shutting down production plants in Wisconsin, Missouri and Pennsylvania, leaving 5,400 workers idle. The company announced the temporary layoff in September to give workers time to prepare for a week without pay. Company benefits, however, are not affected. According to Tom Boger, the business representative for the International Association of Machinists and Aerospace Workers Local 175 union, workers in the Pennsylvania plant seem to be taking the shutdown rather well as it's a short layoff and they had time to prepare. "People seem to be OK with it," he said. "It seems to be just no problem."




The layoff coincidentally comes at the start of deer hunting season, giving idle workers time to hunt without sacrificing days off from work. Harley-Davidson's third-quarter profits fell 15.3 percent amid a lull in the U.S. motorcycle market. The company said it expects next year won't be much better as rising oil prices and declining home sales will leave domestic buyers more cautious about their spending. The company cut bike shipments and earnings expectations in September. Shipments were down 10.8 percent to 86,535 units in the most recent three-month period. The company expects full year shipments to be between 328,000 and 332,000 units, down from 349,196 units last year.
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