USW@Work - National College Players Association - United ...

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Jamie FatlaDenise LedgerJeff HawthorneMedical BenefitsPROTECTEDPhotos by Gerald DickeyNew Deal for Harley-Davidson Employees in Wisconsin“We figured outa way to nottake moneyout of ourmembers’pockets to payfor health care.That’s a bigwin for us.Mike Masik”USW-represented workers at Harley-Davidson Inc. factories in Wisconsinhave overwhelmingly approved new contracts that raise wages and protectmedical benefits.The approvals came in ratification votes held in April for members of USWLocal 2-209, which represents about 1,700 Harley employees in Milwaukee, and USWLocal 460 in Tomahawk, Wis., which represents about 460 employees.A separate agreement covering about 150 members of the International Associationof Machinists and Aerospace Workers (IAM) Lodge 78 in the Milwaukee area wasalso ratified.The USW agreements call for a 2 percent wage increase in each of the four years.They also include an innovative way to help employees cover health care insurancedeductibles and other out-of-pocket expenses.Wage hike in tough times“We did get a wage increase in tough times,” Mike Masik, president of Local 2-209,said after the vote. “We figured out a way to not take money out of our members’pockets to pay for health care as long as they stay in network. That’s a big win for us.”Each employee will receive a $2,000 annual credit in a health savings programcalled a Health Reimbursement Arrangement (HRA). The HRA credits, available toemployees through a debit card, can be used for a wide range of medical care costswith the balance rolled over from year to year.The account balance accrued during working years can be accessed after retirementor a job change. If the employee dies, a spouse or other eligible dependents can use theHRA balance toward reimbursable expenses until they are exhausted.USW negotiator Steve Brady said the credit should be enough to cover the maximumamount of annual out-of-pocket expenses an employee could be required to paywithin a network of health care providers.“If you play your cards right, stay in the network, you can use a swipe card andnever pay anything out of pocket,” Brady said.12 summer 2008 • USW@Work
The USW contracts include annual general wageincreases for all employee classifications plus one-timeboosts of a $1 to $1.50 an hour for certain electricians andmachinist classifications.Two-tier wages addressedThe contract approved by Local 2-209 in Milwaukee alsoallows newly-hired skilled workers who started work at alower tier wage to progress to the top rate over four years.“Casual employees used to cover seasonal work at a partsand accessories warehouse received a rate hike of $6 an hourbefore the general wage increase,” Brady said.In 2006, Local 2-209 agreed to lower wages for futureHarley employees in exchange for production expansionsthat would create new jobs. The expansion has beenmoving forward.Not all of the bargaining goals were met. Masik said thereis some disappointment because the new agreement did notimprove pensions and did not grant job security language forany new products.The package was distributed to members several days inadvance of the ratification vote. Action team membersexplained the contract to members at work.“All in all it was a fair contract,’’ Masik said. “A youngcommittee worked very hard and very long hours to get thisthrough. They did a lot of communicating with the people onthe floor. That worked very well.”Shelba McKinneyHarley Announces RetrenchmentIn another sign of a continued slowdown in the U.S. economy, Harley-Davidson Inc. has announced plans to slashproduction and lay off hundreds of workers.The retrenchment plans were announced after USW members who work for Harley in Wisconsin approved newfour-year contract agreements.The job cuts, described by the company as permanent, are expected to include 360 non-production jobs and370 production positions.The majority of the assembly line cuts are expected to take place at Harley’s plant in York, Pa., where the InternationalAssociation of Machinists represents hourly workers. Since many of the company’s salaried workers are in Wisconsin,that state will bear the brunt of the non-union job reductions.Deepest cuts since the 1980sThe cuts, the deepest Harley has made since the 1980s, come amidsluggish sales for the U.S. company, the largest producer in the worldof heavyweight motorcycles.The company blamed economic difficulties in the United States, itsbiggest and most important market. U.S. consumers have been forcedto hold back spending as a result of a housing slump and a relatedtightening of credit markets.As a result of the slowdown, Harley plans to cut this year’smotorcycle shipments by 23,000 to 27,000 machines. Counting thosecuts, the company expects to ship between 303,500 and 307,400 motorcyclesfor the full year.USW@Work • summer 2008 13
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