Catherwood LibraryILR School

On June 29, the NLRB ruled that Harley-Davidson Motor Co. broke the law when it failed to notify the International Association of Machinists (IAM) before offering employees’ incentives to resign their jobs. Although a collective bargaining agreement grants the company authority to lay off employees on the basis of seniority without negotiating with the union, the IAM never agreed to give up its right to bargain over the company’s decision to offer employees $15,000 severance packages. The current contract between the IAM Lodge 175 and Harley Davidson is locked in until 2022 and allows the company to make layoffs without consulting the union if it’s on the basis of seniority. In 2016, the company decided to reduce its unionized production and maintained employees by 102 workers at it’s York, PA plant. The board found that in August 2016, the company had illegally announced that they could reduce the number of workers laid off if some employees accepted a $15,000 offer to leave. While an administrative law judge initially sided with Harley Davidson on the issue, the NLRB disagreed, saying that the incentive payments were a mandatory subject of bargaining under the NLRA because they encompass wages and terms and conditions of employment. Harley Davidson has been ordered to bargain with Lodge 175 before implementing any changes relating to the aforementioned conditions.