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Friday, November 20, 2009

Breaking News Harley demands concessions in contract offer to York County workers

Workers at Harley-Davidson Inc.'s largest production plant in York County, Pa., today received their first look at the company's proposed contract offer and the concessions that may be needed to keep their jobs.
The Springettsbury Township plant employs about 2,000 workers.
Workers and representatives of International Association of Machinists and Aerospace Workers Local 175 met today at the York Expo Center's Toyota Arena.
The company has given workers an ultimatum, saying they must approve the contract to prevent Harley's largest production facility from moving to Kentucky, workers told the Central Penn Business Journal.
However, Kentucky Gov. Steve Beshear on Thursday said the likelihood of Harley relocating its plant to Shelbyville, Ky., was "significantly diminished," The Associated Press reported.
Harley spokesmen did not immediately return calls seeking comment.
Under the proposed contract, union workers would pay more for their health care benefits, agree to fewer job classifications as well as increased flexibility to move from one job to another within the plant, workers said.
"This proposal is not all that bad," Jeffrey Stanley, who has worked at Harley for 20 years, told the Central Penn Business Journal.
Milwaukee-based Harley is offering early retirement and severance packages to Pennsylvania workers who want to leave the company.
The union was scheduled to vote on a new contract on Dec. 2.

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Breaking News Guiffres cry foul in Milwaukee Mile negotiations

A group of business owners led by Frank and Dominic Guiffre seeking to run The Milwaukee Mile says it is no longer interested in running the racetrack because of contractual changes made by the State Fair Park Board.
According to a letter sent to the board today, the board and the group agreed to terms that would have allowed it to run operations at the track in West Allis. Those terms required the management group to secure a national race within a three-year period. However, the State Fair Park Board, led by chairperson Sue Crane, recently shortened that time frame to two months.
"We now have no intention of going anywhere with Sue Crane and her board, because you quite simply can't be trusted," the letter stated. "Unfortunately, Sue Crane's unsophisticated, country pumpkin approach to contract negotiations is but one more chapter in the frustrating and embarrassing story of the board's mismanagement of the Mile's operation."
Craig Barkelar, interim director of State Fair Park, said the board revised the terms of the contract because it was concerned that the group would not be able to secure NASCAR racing at The Milwaukee Mile for 2010.
"We have a heavy commitment to having it here in 2010 and when it got to the point where we weren't quite positive that was going to happen, we went back to the old language of the contract," he said. "There were comments made by individuals that kind of indirectly made their way back to us. We know it's a really significant change. Honestly, it probably would lead to them paying a little bit more for NASCAR, and the old language gave them a stronger negotiating position, but we wanted to make sure
NASCAR runs next year at the mile."
The Guiffres, in their letter to the State Fair Park Board, say they were not notified about the contractual change. However, according Barkelar, the group was notified by e-mail last Thursday and agreed to the new terms Monday.
"I assumed they didn't like (the new terms) but I also assumed that they were as committed as we were," Barkelar said.
According to their letter written to the State Fair Park Board, the Guiffres do not agree.
"This unilateral change represents a complete lack of good faith on the part of Sue Crane and her board," the letter stated. "All of the work that we and others have done to move forward with rejuvenating the Mile's operations and bringing the vendors back into the fold which would both save and create jobs and to re-energize those involved, including the sponsors, is all for naught."
Earlier this month, Historic Mile LLC, a group that included Tony Machi, Jim Beaudoin and Steve Jones, said it did not have enough financial resources to fulfill the terms of its contract to run The Milwaukee Mile, which was signed in August.
The former promoter, Wisconsin Motorsports LLC, ceased its operation of the racetrack in July and reportedly owes millions of dollars to vendors, NASCAR and the Indy Racing League.
Frank Guiffre said the group still wants to run The Milwaukee Mile, providing the contract is returned to its original terms.
"If they come back, we'll work with them," he said.
However, it seems unlikely that the State Fair Park Board will be willing to re-revise its terms. According to Barkelar, there is a third group, which he declined to identify, that is interested in operating The Milwaukee Mile.
"I never want to say never, but there was a third group that submitted a proposal, and so we are going to give that group an opportunity to look at these exact terms, talk to NASCAR and work out a deal," he said. "They sort of deserve that opportunity now. I wouldn't even say that that third group is our last option. Other people have contacted us too."

Johnson Outdoors pares losses

Johnson Outdoors Inc. today reported a fiscal fourth quarter net loss of $14.2 million, or $1.55, which was an improvement from a loss of $74.6 million, or $8.07 per share, in the same period a year ago.
The Racine-based manufacturer of outdoor recreational products reported quarterly net sales of $65.3 million, down from $81.8 million a year earlier.
While restructuring costs accounted for more than half of the reported operating loss in the fourth quarter, cost-savings helped offset the impact of declining sales on profitability during the period, the company said.
Due to the seasonality of the warm-weather outdoor recreational products industry, the company's fourth quarter results historically reflect a loss due to the industry-wide slowing of sales and production.
"We have been strategic and aggressive in our efforts to increase flexibility and drive efficiency throughout our operations, while continuing to deliver innovative products and value-added service to our customers and consumers. As a result of this year's successful cost-reduction plans and debt refinancing, we believe our businesses are stronger, more competitive and better positioned to deliver sustained profitable growth and enhanced shareholder value in the future," said Helen Johnson-Leipold, chairman and chief executive officer of the firm.
"Disciplined working capital management and balance sheet focus enabled us to generate approximately $31 million in operating cash flow this year and successfully complete a new financing structure more reflective of our performance and better suited to our business model," said David Johnson, vice president and chief financial officer.

Koss Corp.'s board authorizes stock split

At a special meeting on Thursday, shareholders of Milwaukee-based Koss Corp. authorized the company's board of directors to increase the total number of shares of common stock from 8.5 million shares to 20 million shares.
The approval of the increase in the number of authorized shares was a condition of the two-for-one forward stock split that was approved by the company's board of directors on Oct. 7, to bring the firm into compliance with Nasdaq's continued listing requirements.
On Sept. 10, Nasdaq notified Koss that it no longer met the 750,000 minimum publicly held shares requirement. The proposed stock split will cause the company's total number of publicly held shares to exceed the 750,000 minimum threshold while maintaining Koss's compliance with Nasdaq's other continued listing requirements. Koss must regain compliance with Nasdaq's listing requirements by Dec. 24.
The forward stock split will be affected in the form of a stock dividend of one share of common stock for each share of common stock outstanding. Koss expects that the stock dividend will be distributed on Dec. 1.

Wisconsin DOT to make rush repairs to Zoo Interchange

Three bridges in Milwaukee's Zoo Interchange are crumbling and need to be rebuilt very
soon, according to the Wisconsin Department of Transportation.
The DOT announced Thursday it will rebuild the following three bridges: northbound Interstate 894/US 45 through the interchange to north U.S. 45; southbound U.S. 45 to the eastbound I-94 connector ramp; and northbound I-894/U.S. 45 to the westbound I-94 ramp.
Investigations of the bridges conducted over the past three months show significant deterioration that prompted the DOT to move forward immediately with plans to build new structures at the three locations, even though replacement and redesign of the entire interchange will needed further down the line.
The DOT is soliciting the construction industry in a request for proposals (RFP) to accomplish the bridge replacements by Memorial Day weekend 2010. The RFP also requires the use of accelerated construction technologies that will limit traffic impacts due to detours or closures to only three weekend periods.
"The Zoo Interchange is the busiest interchange in the state of Wisconsin. We must place a high priority on keeping travelers safe, commerce flowing and minimizing the impacts of construction on neighboring communities," said DOT Secretary Frank Busalacchi.
In mid-August, weight restrictions were posted for trucks until a more thorough assessment was conducted. Weight restrictions will remain in place to preserve the integrity of the structures until they are replaced.
Built in 1963, the Zoo Interchange is the busiest interchange in Wisconsin with more than 350,000 vehicles using it each day.
For more about the replacement plan, view this report from WISN-Channel 12, a media partner of BizTimes Milwaukee.

Stocks slip into weekend

Disappointing quarterly earnings from Dell Inc. brought technology stocks down this morning, prompting the overall stock market to slip today. The largest local decliners in the BizTimes Stock Index this morning were Joy Global Inc. (down $1.60 to $53.30) and Bucyrus International Inc. (down $1.48 to $51.16). The largest local advancers this morning were Koss Corp. (up $1.30 to $12.86) and Wisconsin Energy Corp. (up 30 cents to $44.78).

State headlines: Green Bay's CityDeck to open Saturday

CityDeck, the Green Bay riverfront project under construction for more than a year, will get its first public use when the University of Wisconsin marching band plays its way down the boardwalk Saturday. CityDeck is on the east bank of the Fox River between Walnut and Main streets. It consists of a boardwalk along the river's edge, a pier over the river called Shopko Landing and a paved walkway inshore that is an extension of the Fox River Trail. The project includes permanent seating and lighting to make it usable after dark. Green Bay officials hope the CityDeck will spur development in the downtown area, especially along the river. Read more in BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.

BizTimes Nonprofit Weekly: Greater Milwaukee Foundation launches 'Vital Signs'

The Greater Milwaukee Foundation has created a new online resource for measuring the
economic health of metropolitan Milwaukee. "Vital Signs" tracks and provides analysis
for unemployment, food stamp usage, foreclosure filings and W-2 payment cases in the
four-county area. The service also provides information on calls made to 211@Impact for
food assistance and shelter in Milwaukee County. To read more about the latest news in
southeastern Wisconsin, visit the latest edition of the BizTimes Nonprofit Weekly
bulletin.

 

Weekend preview

Busy readers of BizTimes Milwaukee can get a jumpstart on the weekend ahead by reading the OnMilwaukee.com Weekend Preview. OnMilwaukee.com is a media partner of BizTimes Milwaukee.

 

Milwaukee Biz Blog: Legalize medicinal marijuana in Wisconsin

The time has come for the use of medicinal marijuana to be legalized in Wisconsin, according to public relations expert Alan Gaudynski, author of today's Milwaukee Biz Blog. Do you agree? Take today's BizTimes Poll at www.biztimes.com.

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