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Harley plant: Ruse or real possibility?

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Frankfort’s top industry hunter says a plan to locate a Harley-Davidson factory in Shelbyville could be a company ploy to gain concessions from a union in York, Pa., where it’s currently located.

“In my 24 years of doing this, it’s not unusual to see that occur,” said Phil Kerrick, executive director for the Capital Community Economic–Industrial Development Authority. 

Harley-Davidson is currently negotiating a contract with the local automotive workers union in York, Pa., and has asked for cost-cutting concessions, according to news reports. It’s unclear what demands the company has made.

The company says the plant, which employs about 2,000, is not competitive.

A vote by union members on a proposed contract is scheduled for Dec. 2 and could affect the company’s plans to relocate.

Neither the union nor Harley-Davidson responded to a request for comment Wednesday.

However, company officials have spent a significant amount of time and energy meeting with state and local officials to discuss the possibility of relocating, Kerrick said. 

He said he hopes it’s not simply an effort to gain leverage over the union and extract more concessions.

“I hope for our sake it comes here,” Kerrick said. “It would mean a lot to this community.”

However, Harley executives also say they’d prefer to remain in York, according to news reports.

Employees who have been laid-off from manufacturers in Franklin County would likely gain employment at the proposed Harley plant, Kerrick said, although he couldn’t predict how many.

Hundreds of automotive workers have been laid off from Certified Tool, Bendix, Topy, Gecom and Montaplast in the last 24 months. Kerrick said that means there’s a pool of trained workers looking for jobs.

“We have a lot of people with a lot of skills looking for opportunities.”

Manufacturers in Franklin County could also receive contracts to supply parts for Harley bikes. It wouldn’t be hard to manufacture parts for Harley because the customers usually loan tools, die and presses to suppliers, Kerrick said.

“It could have a tremendous impact on the Franklin County economy,” he said.

However, relocation would be unlikely without a significant incentives package, given the current economic recession, Kerrick said. Tax credits are not attractive because they would not have an effect on start-up operations, he said.

“They are probably looking for cash on the front-end,” Kerrick said.

Gov. Steve Beshear has pledged to call a special legislative session in order to approve incentives for Harley-Davidson if it agrees to relocate to Kentucky, according to the Associated Press.

But Beshear issued a statement Thursday expressing doubt that Harley will relocate to Kentucky, saying chances were “significantly diminished.” 

Shelby County Fiscal Court has rezoned 214 acres near Interstate 64 from agricultural to industrial to accommodate the project.

A number of state, city and county officials also say they support efforts to bring Harley-Davidson to Shelby County but aren’t involved in the discussions.

A recent editorial in the Anderson News urged officials in Lawrenceburg to be proactive and ensure their constituents get their “fair share” of jobs that the Harley plant would bring to nearby Shelbyville if the deal goes through.

Harley’s third-quarter sales fell 23 percent and it plans to sell its sport brand, the Buell, according to the Associated Press.

A poll on the York union Web site shows members are most concerned with job security – two-thirds of the 540 respondents said that was the top issue in contract negotiations.