Harley-Davidson Ready to Lay Off Its Employees
A shocking revelation storms the US market and several affected citizens as Harley-Davison plans to shut down most of its operation. When approached, an employee of the firm, Tim Primeaux, expressed how taken he was with the development.
The employee expressed that he had been with the company for over 17 years of his life. During these years, he had worked with the plant of Harley-Davison located in Kansas City and had come to expect to work with the company till when he retires.
However, his expectation was thrown into the mud when he learned what the firm’s administration planned to do. According to him, he and other 800 affected employees were informed in January that come next year, the firm will be shutting down its operation, and any other activity in the country will be transferred to the Motorcycle arm of its business located in Pennsylvania, New York.
Tim went further to express that he and his fellow employees have remained compliant to all that the company has asked them to carry out. For this reason, it seemed a total waste to realize that the firm has not regarded their efforts.
The move made by Harley-Davison
Few days after the incident, the firm came out to announce that there will be an increase in dividend. Also, that they were to initiate buyback stock plan that will allow them to reward their loyal stakeholders. The program will enable Harley-Davison to reclaim about $15 million of the shares that amount to $700 million.
You should know that in the year 2017, the US government made a move to reduce the tax rate for corporations like Harley-Davidson. This move that the Fed took allowed the company to get a 14 percent relieve in tax, bringing their percentage from 35% to 21%. While many consider that the firm could be paying off its workers and stakeholders through the money they had saved from last year, Harley-Davison expressed that it was not so.
According to the corporation, all plans to initiate buyback and payment of the increase in dividend had nothing to do with the reduction in task rate.
What Paul Ryan has to say
The speaker of the House, Mr. Paul Ryan after visiting Harley-Davison plant located in Wisconsin, last year, September, expressed optimism and the need for tax reforms. According to him, when the government allows an improvement in tax to take place, manufacturing firms in America like Harley, and other American companies that are still active, will have a better foundation to broaden their exploits. Hence, making them capable of entertaining a healthy global competition, boost the economy, and keep more people employed.
Workers say on the matter
After the Federal government heard the demands of the people and Paul Ryan, and reduced the tax rate, many Harley-Davison employees were of the mindset that the firm would use the extra funds to increase their pay rate. However, things turned out in the negative.
A recently conducted survey shows that out of the one hundred S&P only 10% will be using their extra cash to boost the paycheck of their workers.
Primeaux expressed that while the decision of the company not to increase the pay rate of the eight hundred affected employees stunned them, the recent decision to shut down the Kansas Plant leaves them in a more severe state.
For him, the moment the news of closure reached him, he felt like he was living an awful dream he could not wake up from.
New Development in Harley
While several employees in America are about to lose their jobs come next year, Harley-Davison is currently constructing another Plant branch in Bangkok, Thailand. When asked, the firm expressed that their actions in Bangkok have nothing to do with their decision in Kansas City. According to their spokesman, Michael Pflughoeft, the two are completely unrelated
The firm went further to state that it took them long consideration before arriving at their position as it was a tough decision to make. However, the situation of things in the region was not encouraging. According to Harley-Davison, the Plant at Kansas City has experienced low patronage for a while. For this reason, the company needs to reassess the surplus capacity of the United States.
Take of Kansas workers
Another employee, of the firm, came out to express that it was unfair for the company to make such decision. To him, the firm was moving the jobs they had to others outside the country.
The president of the Harley workers’ union, Kevin Amos, has had the chance to be an employee of the firm for over 17 years. He stated that he had on several occasions met with the executives of the company and requested that they inform him on the various ways they the workers could continue to keep the firm running in Missouri. He said that during those times, all they told him was that they were doing everything needed to keep the company.
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