First, let it be said: Harley Davidson is not the enemy. The ""iconic"" Milwaukee brand has existed for 107 years and has steadily brought jobs and tax revenue to the state since the 1960s.
After threatening to move its operations out of Wisconsin, Harley Davidson reached a deal with its unions to make some necessary cuts. Harley plans to lay off 250 employees from Menomonee Falls and 75 employees from Tomahawk by April 2012, when the new contract goes into effect. But it also manages to save hundreds of jobs.
Harley CEO Keith Wandell announced that under the new contract Harley will employ a ""casual"" workforce of 150 to 250 union members who will basically work part-time, depending on seasonal demand for the motorcycles, and will get less pay than full-time workers with no benefits. Last year, the company laid off half of its production employees at its plant in York, Pa., and threatened to move operations to Kentucky as a cost-cutting measure, which forced union workers at the York plant to accept a similar seven-year contract.
Last Friday the State Department of Commerce gave Harley $25 million in tax credits. Some protested, saying the state redundantly dumped tax dollars on the company after it had already reached a deal with the unions. However, the DOC was in negotiations with Harley long before the deal with the unions was even reached, according to DOC spokesperson, Tony Hozeny.
Harley's threat to pack up shop is, unfortunately, not an extraordinary event in Wisconsin. Wisconsin has one of the least appealing corporate tax policies in the country. While we are not suggesting Wisconsin should become a free-for-all tax haven like Delaware, it can do a lot more before it even approaches that point. In July, Fitchburg's Wolf Appliance Inc. threatened to move to Kentucky if its workers did not accept a 20 percent pay cut and five-year wage freeze. Last year, the state offered Mercury Marine in Fond du Lac $70 million in tax credits as an incentive to remain in Wisconsin.
Yes, Harley has forced its employees to make a tough decision, but Harley is not the larger culprit—the state is. Giving tax incentives for well-heeled Wisconsin businesses such as Harley-Davidson should not be the exception but the norm. The state should look into offering specific tax breaks for businesses that stay in Wisconsin for a particular number of years and provide their employees certain benefits. Kraft and Subzero are just two businesses the DOC should court as it did for Harley and Mercury Marine.
Yes, the state needs to focus on reforming policy to support small businesses, but by the same token it cannot ignore the companies that have supported our economy for so long. To maintain businesses that have remained loyal Sconnies, as well as to support our working class, the state must be proactive in both recruiting and retaining companies, companies that can be called ""iconic"" Wisconsin institutions in another 107 years.
