Harley Davidson Puts Labor Issues to Rest

[Omaha Steve]

http://seekingalpha.com/article/70993-harley-davidson-puts-labor-issues-to-rest?source=side_bar_long_ideas

On Friday the United Steelworkers and International Association of Machinists and Aerospace Workers, Local 2-209, is expected to approve a 4 year deal with Harley Davidson (HOG). Terms have not been disclosed.

Last summer 2,900 workers in York., PA struck and finally agreed to a 12% pay raise over 4 years and the agreement is widely thought to be a blueprint for the current negotiations.

Now that HOG has put to rest labor issues, the timing of this is very good for the company. Dealer inventories are reported to be tight all over and the spring selling season is beginning in earnest. With that being said, the last thing HOG would want at this time is a labor dispute that would cause delivery disruptions to dealers.

While 2008 is not supposed to be a banner year for sales by any means, all evidence is that the company and its dealer network have done a wonderful job controlling inventory levels.

With possible labor issues behind it, HOG will now be able to control production on its own term to assure steady inventory levels.