Harley-Davidson workers dumbfounded by plant closure after taxation cut

Tim Primeaux has worked during a Harley-Davidson plant in Kansas City, Missouri, for 17 years. He was certain he was going to retire from a company.

That all altered when Harley-Davidson told a 800 employees in Jan that a plant will be shutting subsequent year. Operations will be shifted to a motorcycle manufacturer’s trickery in York, Pennsylvania.

“We did all Harley-Davidson asked us to do,” pronounced Primeaux, a welder. “To have it all blow adult in your face is kind of disappointing.”

Days later, Harley-Davidson announced a division boost and a batch buyback devise to prerogative shareholders, repurchasing 15 million of a shares, valued during scarcely $700 million.

Like other corporations, Harley-Davidson is benefiting this year from a taxation cut law upheld in 2017, that slashed a corporate rate from 35 percent to 21 percent. The association maintains that a division boost and batch buyback is separate to a taxation savings.

House Speaker Paul Ryan visited a Harley plant in Wisconsin in Sep and said, “Tax remodel can put American manufacturers and American companies like Harley-Davidson on a most improved balance to contest in a tellurian economy and keep jobs in America.”

Many Harley-Davidson workers wondered if a taxation cut would drip down to assistance employees. But a new CNBC survey found that usually 10 companies in a SP 100 contend they have specific skeleton to use a assets to boost workman pay.

Workers were taken aback by a preference to tighten a plant. “You could see it on everybody’s faces, only startle and awe,” recalls Primeaux. “It was like we was in a bad dream, only stranded in it.”

Harley is also building a new plant in Thailand. However a association maintains that a Bangkok plant is “separate and unrelated” to a preference to tighten a Kansas City plant, according to Michael Pflughoeft, a orator for Harley-Davidson.

The association calls a shutting of a Kansas City plant a tough preference though says domestic sales are down and it indispensable to “address a additional ability in a U.S.”

But some Harley employees in Kansas City trust that their plant was sealed to make income for a Bangkok one.

“They are promulgation a jobs overseas. Absolutely,” pronounced Rick Pence, a appurtenance repairman in a upkeep department.

Kevin Amos, a kinship boss during Harley who has worked there for 17 years, pronounced he asked association executives mixed times what it would take to keep a association in Missouri and was underneath a sense that workers were doing all to safeguard that a association stayed.

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