Harley Davidson crisis: 200 employees fired

Hard times for Harley Davidson. The headquarters of the Milwaukee giant in Adelaide, South Australia, is closing its doors. There production of hubs and wheels of the Castelloy plant is moved to Japan and the United States, i.e. over 200 workers (183 employees and 29 on contract) are forced to stay at home. The $5.000 that the government will offer to every fired employee to relaunch themselves in the job market is not enough to appease the anger. Apparently, in fact, Harley Davidson brought forward the closure decision (less than three weeks before the Christmas holidays) despite the reassurances it would have given to unions and the Australian executive. The transition is expected to be completed by mid-2013 and is expected to result in annual savings of $9 million starting in 2014.

The decision is part of a more general context developed by the manufacturer in 2009 and which provides for the restructuring and consolidation of the production chain with the aim of returning greater competitiveness, efficiency and flexibility. Pat Sweeney, director of operations and communications of the American motorcycle manufacturer, tried to justify the decision: “It was a difficult decision. The workforce has been very attached to their work and we like what we do. The hubs will be made in Japan and the USA, contrary to what I've heard about China. Castalloy's company had several flaws that we wanted to close. We are making long-term investments in an increasingly tough economy, and we are currently restructuring industries in the United States. We try to remain competitive by continuing to offer the products our customers want".