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Harley-Davidson Employees in Wisconsin Approve New Deal

For Immediate Release                                              April 8, 2007

USW-represented workers at Harley-Davidson Inc. factories in Wisconsin have overwhelmingly approved new contracts that raise wages, protect medical benefits and make temporary two-tier wages for skilled craftsmen.

The agreements were ratified by overwhelming margins in April by members of USW Local 2-209, which represents about 1,700 Harley employees in Milwaukee, and USW Local 460 in Tomahawk, Wis., which represents about 360 employees.

A separate agreement covering about 128 members of the International Association of Machinists and Aerospace Workers (IAM) Lodge 78 in the Milwaukee area was also ratified.

The new four-year agreements were retroactive to April 1.

In addition to wage increases, the new contracts include an innovative way to help employees cover health care insurance deductibles and other out-of-pocket expenses.

Each employee will receive a $2,000 annual credit in a health savings program called a Health Reimbursement Arrangement (HRA).

The HRA credits, available to employees through a debit card, can be used for a wide range of medical care costs with the balance rolled over from year to year.

The account balance accrued during working years can be accessed after retirement or a job change. If the employee dies, a spouse or other eligible dependents can use the HRA balance toward reimbursable expenses until they are exhausted.

USW negotiator Steve Brady said the credit should be enough to cover the maximum amount of annual out-of-pocket expenses an employee could be required to pay within a network of health care providers.

“If members and their dependants are able to receive medical care in network, you can use a swipe card and never pay anything out of pocket,” Brady said.

The USW contracts include annual general wage increases for all employee classifications plus one-time boosts of $1 to $1.50 an hour for certain electricians and machinist classifications.

The contracts will also allow newly-hired skilled workers who start work at a lower tier wage than more experienced employees to progress to the top rate over four years.

Casual employees used to cover seasonal work at a parts and accessories warehouse received a rate hike of $6 an hour before the general wage increase, Brady said.

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