Harley Davidson has given its 2,000 York, PA, employees a choice. The motorcycle company won't move out of state if it has the freedom to cut approximately 1,000 jobs.
Harley presented employees with a 58-page, seven-year union contract that ensures its tenure in York if it can make some changes - most notably, major job cuts. The cost is high, but not as high as Harley shuttering its largest plant and moving operations to Kentucky.
In addition to the job cuts, the plan outlines reductions in employee benefits, such as vacation time, healthcare and retirement.
Harley also said it would invest up to $90 million in York operations.
If York workers do reject the plan, then it is doubtful that Harley would see any further reason not to relocate to Shelby County, KY, where a large land parcel is being rezoned and state officials are preparing an incentive package. The motorcycle company had been considering
three sites for its potential relocation before naming Kentucky as the winner.
A rejection of the contract is highly unlikely, however, as Harley is vital to York's economy. Even Kentucky Governor Steve Beshear said last week that the chances of the plant being moved to Kentucky have been "significantly diminished."
UPDATE: The contract was approved by Harley workers on December 2.