Harley-Davidson Employees Enraged with Layoffs After Tax Cut
The iconic Harley-Davidson surprised thousands of its employees when they announced the layoffs, despite the company expecting huge privileges from the new corporate tax law.
The Sudden Layoffs
Last January 2018, the Harley-Davidson company plant in Kansas told its 800 employees that the plant will shut down next year. The management decided to shift the operations to their motorcycle manufacturer’s facility in York, Pennsylvania. This move puts around 800 employees at risk of losing their jobs and source of livelihood.
Tim Primeaux also revealed how he was disappointed with the sudden layoffs when they did everything the company asked them to do, especially since Harley-Davidson is expected to enjoy the huge benefits they get from the newly passed corporate tax cut which lessens tax from the previous 35%, down to 21%.
As if on cue, the company announced a few days later a dividend increase as well as a stock buyback plan as part of its rewards to their shareholders. The company repurchased 15 million of its shares, with its value amounting to $700 million. However, the company stated that the stock buyback, as well as the dividend increase, are unrelated to the tax saving.
Since then, Harley-Davidson’s employees have been wondering if the said tax cut will help boost their benefits. But they were taken aback when they announced the plant’s closure. Primeaux recalled how he could see the shock on everybody’s faces. It was like they were having a bad dream, and they’re still stuck in it.
Meanwhile, Michael Pflughoeft, the spokesman for Harley-Davidson, defended the company’s tough decision. He stated the closing had something to do with the plant’s declining sales vs. the cost they paid to keep their company. It was not an easy decision for the management to come up with such a tough decision.
However, he revealed that they had to do it to solve the company’s excess capacity in the US. Pflughoeft also addressed the employees’ assumptions that their shutdown has something to do with the Bangkok branch.Some say that the closing was to divert the funds of the employees’ pay to establishing the overseas plant. But the spokesman clarified that while it’s true that the company plans to build a new plant in Thailand, the layoff decision is separate and unrelated to their future expansion plans.
The Employees’ Disappointments
However, the employees from other branches fear that the Kansas layoff is just the beginning for the company. A Machine repairman named Rick Pence claimed that they are sending jobs overseas due to the cheaper pay. He recalled how he felt like he won the lottery when he got hired, but now it’s turning into a nightmare. Meanwhile, the union president at Harley, Kevin Amos, asked the company multiple times in the past what it would do to keep their branch in Missouri.
He also emphasized the workers were already doing everything in their power to keep the company there. Amos said they thought the matter was already settled, but clearly, it wasn’t. Primeaux also said that if he could, he wanted to deliver a message to the CEO Matthew Levatich, pleading him to keep the factory in Kansas City for the future of his three girls. He also added that his daughters plan to follow his footsteps and work in the company since it’s a great place to work. He’s still having a hard time accepting their fate especially since he’s set to retire next year.
More in Loans & Credit
Shattering The Myths Surrounding Real Estate Careers
Real estate is a lucrative career, there’s no denying that. But while it promises great money, it also brings along some...September 21, 2020
Two Retirement Dangers That You Have to Solve Sooner or Later
Retirement is a totally new life for anyone, moving from a congestion of ideas and persistent work to complete calm and...September 17, 2020
Here’s Why You Should Seriously Consider Refinancing Your Home Mortgage
If you’ve heard of mortgage refinancing but never really understood it, allow us to give you the simplest explanation for it...September 17, 2020
Basketball Sensation Dwight Howard Lists His D.C House on the Market
One of the most glamorous sports of all time is basketball. The sheer number of NBA fans across the world is...August 7, 2020
Big Budged: First Lady Melania Trump Has Some Reconstruction Plans Up Her Sleeves For Rose Garden
Melania Trump is ready to step into the limelight as a “traditional First Lady” with her recently disclosed plans of revamping...August 3, 2020
Legendary actor Anthony Hopkins Makes Huge Profit on the Sale of his Malibu Beach House
There would hardly be a movie buff who hasn’t watched, easily one of the most brilliant masterpieces of Anthony Hopkins, “Silence...July 29, 2020
Tristan Thompson Returns His Encino Mansion to the Market Less Than a Year after Buying It
It seems that flipping houses isn’t a hobby only A-list actors from Hollywood sport. Famous singers and even broadcasters like to...July 29, 2020
7 Must-know Property Investment Tips for Beginners
Real Estate investment is gaining a considerable amount of popularity as a means of passive income in the year 2020. Making money through investing in...July 29, 2020
After Two Years of Remodeling, Diane Keaton Finally Tosses her Tucson Desert Villa on the Market for $2.6 Million
The American actress, Diane Keaton, has a keen eye for aesthetics and real estate. Famous for featuring in all-time favorite movies like...July 22, 2020