Harley-Davidson workers digest 58-page tentative agreement: A tentative deal is expected to be put in front of Harley workers ah

At the York Expo Center this morning

Workers at the Harley-Davidson's Springettsbury Township operations are at the York Expo Center this morning to get a first look at a tentative new contract. The preliminary contract is ready more than a week and a half before the Dec. 2 vote.

Highlights of the contract:

It's 58 pages long.

The tentative agreement is proposing a 7-year-deal.

It includes a commitment from the company to invest up to $90 million to restructure York Operations and will discontinue its efforts to relocate to Kentucky.

The company commitment states: "The restructure operations will initially include the Softail, Touring and Tri-Glide products and the associated frames, fuel tanks, fenders, paint and vehicle assembly. Products and processes may change over time."

The tentative agreement's official name: letter of understanding-company committment.

It focuses on senority, job classification, vacation, overtime and union representation.

It details 5 labor grades, which is down from the current labor grades of 12.

For those who lose their job because of restructuring, employees can choose a lump-sum payment and will also get a $10,000 bonus. Or they can decline this and be eligible for recall to work.

Employees may also volunteer to be part of the reduction and receive the benefits if they lose their jobs.

Up to 572 employees who lost their jobs after Jan. 1, 2008, and before Dec. 2, 2009, will receive $1,000 each before March 1.

All active employees as of Dec. 2 also will receive a $1,000 payment before March 1.

The proposed wage rates are:

Tier 1

Production Technician 1: $24.10 through the life of the contract.

Production Technician 2: $26.05 through the life of the contract.

Maintenance

Mechanical: $29.01 from Feb. 2, 2010-Feb. 2, 2015; $29.59 from Feb. 2, 2015-Feb. 1, 2016; $30.18 beginning Feb. 1, 2016.

Maintenance Electrical: $29.01 from Feb. 2, 2010-Feb. 2, 2015; $29.59 from Feb. 2, 2015-Feb. 1, 2016; $30.18 beginning Feb. 1, 2016.

Maintenance Toolmaker: $29.01 from Feb. 2, 2010-Feb. 2, 2015; $29.59 from Feb. 2, 2015-Feb. 1, 2016; $30.18 beginning Feb. 1, 2016.

Tier 2

Production Technician 1: $19.28 through the life of the contract.

Production Technician 2: $20.84 through the life of the contract.

The contract also includes the possibility for wage increases in the later years of the contract. Production technicians would receive a $1000 lump-sum payment in year five and could see raises in years six and seven based on the Pennsylvania Annual Wage Survey for York County.

All union members could see a 0 to 3 percent increase based on "plant financial and non-financial performance."

Read more contract highlights

Workers react this morning

Brenda Karr, a 10-year line worker at Harley, said she has no choice but to take the contract.

"I love working at Harley and I want a job," she said.

Karr said the aggreement calls for new work rules.

"The company can do whatever they want with the workers," she said. "If I walk in one day and they want me to paint floors, that's what I'll have to do ."

Ron Strine, a 16-year electronics mechanic at Harley said he plans to vote yes on the contract.

"I want to work. I'm not pleased, but I want to work. It looks like if we vote yes on this, Harley will stay."

Dave Taylor worked with Harley for 19 years. He said his biggest concern was the labor grades.

There are now 12 labor grades. The company is going to knock that number down to 5, he said.

"It puts more people to work," Taylor said.

"I feel as that it's the company's ploy to hammer us down," Taylor said. "They might move whether we do this or not."

Outside the Toyota Arena he said he was wanting to see how the union was going to present (the tentative agreement to us).

One veteran worker, James Ickes,

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who has been with the plant for nearly 30 years, was looking forward to hearing the details of the contract.

He was happy a tentative deal has been reached, and reached early for the workers and for the people of York County.

He expected to be inside the Toyota Arena for the better part of the day.

Tom Santone, directing business representative with the International Association of Machinists and Aerospace Workers District 98, said Wednesday some details of the preliminary deal were still being ironed out.

Harley-Davidson spokesman Bob Klein said Wednesday that contract negotiations with the union have reached their conclusion, and he praised the hard work and diligence that went into reaching the tentative deal.

Klein also said he could not discuss details of the deal at this time.

Meanwhile, in Kentucky

The governor from Kentucky said Thursday that the chances of Harley-Davidson going to Shelby County, Ky., are lower now that a tentative contract has been worked out in York County.

Officials in the state are "reading the tea leaves" surrounding news that the union is seeing the contract today, said Kerri Richardson, spokeswoman for Gov. Steve Beshear.

She said that, coupled with Harley's previous statements that it would prefer to stay in York County, leads them to believe the chances Harley will make a move are lower.

Still, Richardson said, the governor's office remains committed to working with the company.

"We don't know anything for sure," Richardson said.

Shelbyville, Ky., was named in early November as Harley-Davidson's destination for its Springettsbury Township vehicle operations, if the company decides to move.

Negotiations began more than a month ago between the union and Harley as part of the efforts to keep York-area vehicle operations and more than 2,000 jobs in York County.

The current contract is scheduled to expire in early 2010, but the sides are working on an early deadline as Harley decides whether to stay in York County or move the operations to Shelbyville, Ky., to help make them more cost-effective.

Harley told workers in May it might move Softail and Touring manufacturing operations elsewhere in the United States because they were not cost-effective as structured.

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