Frequently Asked Questions – Volume Reduction/Restructuring 2009
Kansas City Hourly Bargaining Unit Employees
Although
reasonable attempts have been made to ensure the accuracy of the
answers provided, many of the answers provided rely on the applicable
collective bargaining agreement (CBA) and/or Plan documents. To the
extent there are any inconsistencies between the provisions of this
document and the provisions of the CBA or any Plan, the terms and
provisions of the CBA or Plan will govern. The CBA and official Plan
documents contain the controlling language and details. If a
description in this document or any oral representation differs from
the CBA or any Plan document, the CBA or such Plan document prevails.
No benefits will be paid to any person based on this document unless
the benefits are provided for in the CBA or Plan document as well.
Further,
because we cannot guarantee that the below answers will be accurate for
all employees, employees should contact their Benefits Administrator if
they have any questions regarding their particular situation.
Layoff Questions
How many days notice must the company give a person who is being laid off?
5 Days Notice is required
per article XVI Sec. 5 p.33
What form of notice must be given to absent employees?
Notice to absent employees will be made by registered mail to their last known address,
per article XVI Sec. 5 p.33
What are my recall rights?
Employees
laid off out of the plant will be informed of their recall by certified
mail to his/her address on record with the plant HR department.
Employees
will have seven (7) calendar days from the date the certified letter is
delivered to respond, and fourteen (14) calendar days from the date of
the response to return to work. If the employee fails to return
to work within the specified time, he/she will be considered to have
waived his/her recall rights. The employee’s
recall
rights will exist for a period of consecutive calendar days equal to
one-half (½) the employee’s seniority, as defined in Article XVI –
Seniority, Section 2 (e), or two (2) calendar years, whichever is
greater. Thereafter, if the need exists for additional employees, the job bids will be posted in accordance with the Labor Agreement.
Per article XVI Sec. 7 p.39 #11.
What happens if I fail to respond to the Recall Notification sent to me?
If the employee fails to return to work within the specified time, he/she will be considered to have
waived his/her recall rights.
Per article XVI Sec. 7 p.39 #11. If the employee waives their recall rights during the period of their benefits continuance
they will forfeit the remaining portion of their benefits continuance.
What happens if I don’t get recalled before my recall rights expire?
You
are no longer considered on layoff and you no longer have recall
rights. “Thereafter if the need exists for additional employees the
job bids will be posted in accordance with the labor agreement.”
per article XVI Sec. 7 p.40 #11.
Do you have to take the job offered to you even if it is not the same job you were laid
off from?
Yes,
you have to take the job offered to you by the company even if it is
not the job you held prior to the lay off. Refusal will result in your
loss of recall rights.
How much are the union dues for a laid off member?
If
you are an IAM member, there are a couple of options for you to
consider, please contact David Mattingly at 816-270-8558 for details.
If you are a USW member, Caryn Baker at 816-270-8839.
What happens if I move?
You are responsible to supply
both Harley-Davidson HR and your union with your contact information. Failure to do so could result in you not being notified of recall.
Can Laid off people from the other plants bump into our plant?
No, Kansas City is under its own labor agreement.
Can I transfer to another plant?
No.
Shoe truck billing is 2 months behind, what happens if I am laid off and my bill for the
shoes has not been deducted from my check?
The Company will ensure billing and deductions are current prior to the lay-off.
What will happen to service awards due before September 25th?
Employees
who reach service year milestones (5 years, 10 years, etc.) prior to
the layoff date should follow the established process to order their
award. Awards that arrive after September 25th will be mailed to the employee’s address of record.
I was drawn for a Rally; do I still get to go?
No, if the rally happens after your lay off you will not be attending a rally.
Will I continue to have access to the Wellness Center?
No, you will not have access to the Wellness Center or the rest of the facility.
If you are currently on track to receive a wellness credit for the year, will you be able
to file an appeal for the $150.00 if you are recalled?
No
Do I keep my sick days that I have banked and will they be there if I am recalled?
Yes. Banked sick days will still be a part of an employee’s accrued balances if the employee is recalled.
Will there be any early retirement incentives offered?
No, the company has decided not to offer retirement incentives to get people to leave voluntarily.
What happens if I get recalled and I have restrictions limiting what I can do at work?
Each
situation will be individually analyzed; however, in general, you will
have to be able to do the work in the job you’re being recalled for. If
you can’t you will be skipped, but will remain on the recall list in
the order you were in and the next person on the list will be called to
take that position. If another job comes up for which you are qualified
you will be called for that position until your recall rights are
exhausted.
If a person bumps into my NWG do we have the right to kick them back under a 10 day evaluation?
The contract does not provide for a 10 day evaluation for employees bumping into a new position.
Do attendance points roll off while I am laid off?
Yes. Attendance infractions will roll-off on their scheduled dates per the terms of the Attendance Policy.
Will there be an official call back date set before the layoff happens?
No
Retirement Savings Plan (401(k))
When can I access my 401(k) account?
Within
7-10 business days of your recall rights expiring
(NOT YOUR LAYOFF DATE) your status will be updated to an “inactive”
status with Fidelity, the 401(k) plan record keeper. Once you have been
updated to an inactive status you will be able to initiate a withdrawal
or a rollover from your 401(k). If you choose to take a lump sum
withdrawal and not complete a rollover to another employer’s plan or to
an IRA you may be taxed on your withdrawal and you may be required to
pay a penalty. When you initiate a withdrawal Fidelity will advise you
of the potential tax consequences or any penalties you may incur. In
the January following your withdrawal, Fidelity will send you a 1099 to
report the withdrawal on your income taxes. During your layoff period
you may only access your account for in-service withdrawals (for
example, hardship withdrawals and 59½ withdrawals). You may take a loan
from your 401(k) account, however since you will not have a payroll
deduction the loan will default unless it is paid off in full by the
time of default (see What happens to the outstanding loan I have on my
account?” below).
Do I get to keep my Company matching contribution?
If
you are vested, you may keep your Company matching contribution.
Vesting under the 401(k) plan means that you have worked for
Harley-Davidson for three years in which you have 1,000 or more hours.
If you do not meet these criteria, the company matching contribution
will be forfeited. All employees are eligible to receive a match if the
have contributed and one is payable.
If a match is payable for the 2009 plan year will I receive a match if I am terminated in 2009?
Kansas City hourly employees who contributed during the plan year are entitled to receive a match if one is payable.
What happens to the outstanding loan I have on my account?
If
you do not make the regularly scheduled loan repayments, or otherwise
default, the outstanding balance of your loan will be considered in
default and will be reported as taxable income to you (penalty taxes
may also apply). After the loan repayment deduction from your last
regular paycheck, your loan will begin to go into default. Fidelity
will send you a letter with the date your loan will be defaulted and
the pay off balance.
You
may pay off the balance of your loan at any time prior to it
defaulting. Contact Fidelity at 800-835-5091 for the pay off balance
and directions. Payment can be made with a money order or cashier's
check (made payable to FIIOC). Partial payments are not allowed. When
sending in your payment you will need to include your social security
number, the loan id number and the Fidelity assigned Plan number
(#35444). Send the pay off directly to:
Fidelity Investments Core Market Operations
P.O. Box 770001
Cincinnati, OH 45277-0018
If
your loan defaults, the outstanding balance of your loan will be
considered in default and will be reported as taxable income to you.
Penalty and/or excise taxes may also apply.
Can I leave my balance in the Harley-Davidson 401(k) plan?
If
the value of your vested account balance (excluding rollovers) is
greater than $5,000 you may keep your balance in the Harley-Davidson
401(k) plan until you choose to initiate a withdrawal or a rollover. If
your vested balance is $5,000 or less, your account will be paid
shortly following the date your recall rights expire.
Will
the same investment options in the 401(k) plan that are available to
employees be available to me once I am no longer actively employed with
Harley-Davidson?
Yes, the same funds will be available to you.
Where can I get more information?
Contact Fidelity at 800-835-5091.
Health Insurance
When does my coverage end?
During
a layoff, your medical, life, vision and dental insurances for you and
your eligible dependents will remain in effect for a period of one-half
(1/2) of your total plant seniority plus one (1) day not to exceed one
(1) year after the month in which the layoff begins. For example, if
you were employed for 180 days, you will have a 91 day benefit
continuance period. In no instance will the benefits continuance period
exceed one (1) year. Article XVI Sec 2 (e) 1) a) p. 32
Any
claims incurred after your benefits continuance period described above
will not be covered, unless you have elected and paid for COBRA
coverage. The Harley-Davidson Benefits Administrator (WageWorks) will
send you information about COBRA which will explain your rights and the
forms you need to complete to continue coverage under COBRA. [See
additional COBRA information, below.]
Will I have access to the Employee Assistance Program (EAP) after I am laid off?
Yes, access to the EAP will continue during your benefits continuance period.
What happens to my coverage if I do not get recalled before my benefits continuance period ends?
You will have the opportunity to continue your medical, dental and vision coverage through COBRA.
COBRA
Note:
This section only provides a short summary of some COBRA information
that may relate to you. When you receive your COBRA materials, it is
essential that you read them carefully and follow all instructions
applicable to your individual situation. In the event of a conflict
between the above, and the COBRA materials that you receive, the COBRA
materials mailed to you govern. Also, please note that this information
only discusses COBRA as it relates to the current reduction in force
and that there are other qualifying events under COBRA that are not
discussed here.
What is COBRA continuation health coverage?
The
Consolidated Omnibus Budget Reconciliation Act, otherwise knows as
“COBRA” allows you to self-pay for continued health coverage in certain
circumstances, such as separation from your employment, where your
coverage through a group plan would otherwise end.
The
benefits provided under COBRA will be the same as those provided to
active employees; however, the Company no longer shares the cost with
you. You pay the full health care premium, plus a 2% administrative
fee. If you are determined to be disabled during the first 60 days of
COBRA coverage and qualify for the disability extension (as described
below), the premium will be 50% higher during the 11-month extension.
[Information regarding the COBRA subsidy signed into law on February
17, 2009 will be provided when it is available. The provisions of this
legislation may reduce the amount you will be required to pay for
continuation of your medical coverage under COBRA.]
I was separated as part of the current reduction in force, am I eligible for COBRA?
Yes,
if your employment was separated due to the Company’s reduction in
force, you will be eligible for COBRA continuation coverage.
Your
enrolled spouse or enrolled dependents are eligible to enroll for COBRA
continuation coverage regardless of whether you enroll for COBRA
continuation coverage.
What process must I follow to elect COBRA continuation coverage?
Harley-Davidson
will notify the COBRA administrator (WageWorks) of your qualifying
event (retirement or involuntary termination of employment) within 21
business days of the end of your benefits continuance period.
Plan
participants and covered dependents and spouses generally will be sent
an election package from the Harley-Davidson COBRA administrator
(WageWorks) 21 days prior to the end of your benefits continuance
period. You (employee, spouse or dependent) then have 60 days to decide
whether to elect COBRA continuation coverage. You, your spouse or your
dependent have 45 days after electing coverage to pay the initial
premium. Once payment is received your coverage will be reinstated with
no break in coverage. During the period of time prior to receipt of
payment by WageWorks any claims submitted to the claims administrators
will be denied; once payment is received any rejected claims will be
reprocessed for payment.
When does COBRA coverage begin?
COBRA
coverage begins on the date that health care coverage would otherwise
have been lost (the day immediately following the end of your benefits
continuance period) by reason of a qualifying event, provided premiums
for such coverage have been paid.
How long does COBRA coverage last?
The
situations and the time limits during which you can continue coverage
vary based on the qualifying event you incur. Because you were
separated as a part of this reduction in force, your coverage will
generally last for 18 months. COBRA can be continued for an additional
length of time under certain circumstances. If you believe that you may
qualify for additional coverage, contact the Harley-Davidson COBRA
Administrator (WageWorks) at 866-491-8262 immediately.
What is the current cost of COBRA coverage?
· For 2009 the monthly
cost of COBRA coverage is found in the table below:
|
Employee Only |
Family |
|
|
Medical Coverage |
$417 |
$1,106 |
|
Dental and Vision Coverage |
$30 |
$89 |
· The
above rates are monthly and will be effective through December 31, 2009.
· COBRA
rates are subject to adjustment once a year, effective January 1.
· Dental
and vision coverage are bundled and must be purchased together.
· Information
regarding the COBRA subsidy signed into law on February 17, 2009 will
be provided when it is available. The provisions of this legislation
may reduce the amount you will be required to pay for continuation of
your medical coverage under COBRA.
How do I pay if I want to elect COBRA?
For
COBRA coverage to stay in effect, your premium payments must be
received by the COBRA Administrator the first day of the month in which
payment is due. Your first payment is due within 45 days after the date
of your election, and must cover the period of time back to the first
day of your COBRA continuation coverage.
President Barack Obama signed the American Recovery and Reinvestment Act of 2009 into law on February 17, 2009. The Act provides
for a federal subsidy for COBRA premiums. How will this impact my coverage?
We
are awaiting administrative guidance from the government regarding the
COBRA subsidy. This information will be provided to you with your COBRA
paperwork.
Under what circumstances can COBRA coverage be terminated before the end of the allowable time period?
Continued
coverage following a qualifying event is a right provided by COBRA
legislation. It is important to note, however, that continued coverage
can be terminated for any of these reasons:
· An
individual fails to make a timely premium payment, given the grace period provided by the Plan.
· The company ceases
to offer a group health Plan.
· After electing COBRA
continuation coverage, coverage begins under another group health Plan.
· An individual enrolls
in Medicare after electing COBRA continuation coverage.
· A
qualified beneficiary finds new coverage, unless the new coverage
contains a pre-existing condition limitation that affects the benefits
available to the qualified beneficiary under the new coverage. A person
with continued health coverage who finds new coverage with a
pre-existing limitation will be allowed to maintain the continued
coverage even though he or she is otherwise covered by a new health
Plan.
Once you cancel your continued coverage or your coverage is terminated, you cannot re-enroll in the Plan.
Other Insurance
If I elected a Flexible Spending Account (FSA) can I continue to use it? When must I submit my request for reimbursement?
If
you elected either a health care flexible spending account or
dependent care flexible spending account during the 2009 enrollment
period your claims must be incurred by your lay-off date (not through
your benefits continuance period). If you wish to utilize the Health
Care Flexible Spending Account through the entire calendar year 2009,
you will need to contribute the balance of your annual election from
your last regular paycheck or elect to continue participation in the
FSA under COBRA. Contact the Harley-Davidson Benefits Administrator
(WageWorks) at 800-774-4749 for additional information if you choose to
use this account through the entire calendar year 2009.
Requests for reimbursement under the flexible spending accounts must be submitted to WageWorks by April 30, 2010.
What happens to my life insurance coverage?
You
can elect to convert your basic life insurance to a private direct pay
plan. This is accomplished by making application to Standard Insurance
Company within 30 days following termination of coverage (the end of
the benefits continuance period). Contact the Standard Life Insurance
Company at 1-800-378-4668 ext. 6785.
You will need to reference;
Group Name: Harley-Davidson Motor Group, Inc.
Group Policy Number: 641147
Who do I contact with questions on my insurance coverage?
Contact
the Harley-Davidson Benefits Administrator (WageWorks) at 800-774-4749,
option 0 to speak to a benefits customer service representative or
e-mail harleydavidson@wageworks.com.
What
happens to my coverage if I have elected payroll deductions for
auto/home/renters insurance through MetLife or long-term care insurance
through John Hancock?
You
can continue to have coverage through MetLife or John Hancock. We will
notify these insurance companies of your lay-off date (which can take
up to 30 days). MetLife and/or John Hancock will set you up to be
invoiced monthly if you choose to continue your coverage. You can
contact MetLife at 800-438-6388 or John Hancock at 888-258-7449 if you
have questions or if would like to have your policies converted to home
bill sooner.
Employee Stock Purchase Plan (ESPP)
Can I keep my account balance in the Employee Stock Purchase Plan?
Yes;
however, you may not make additional purchases under the plan. If you
wish to purchase HOG common stock, you may contact Computershare to
purchase it via the Computershare CIP, a direct stock purchase plan
which may save you money, as the commissions and fees may be lower than
regular stock brokers.
How do I access my account?
Contact Computershare at 866-360-5339.
Employee Purchase Plan and Easy Own
Am I still eligible for the Employee Purchase Plan?
Until your lay off date you may incur claims to be submitted under the Employee Purchase Plan.
The
same policy and due dates for claims forms still apply. Claim forms for
Parts & Accessories and General Merchandise must be received
(postmarked) by the Harley-Davidson Benefits Administrator (WageWorks)
within 30 days of the close of the plan year. The plan year for the
Employee Purchase Plan is January 1 through December 31.
Can
I sell the motorcycle I purchased and received the Employee Purchase
Plan discount on prior to the required twelve month holding period?
As
long as you are still actively employed the guidelines of the Employee
Purchase Plan policy must be followed. Once you receive your lay off
notice you may sell or trade in your motorcycle.
Where can I get more information?
Contact the Harley-Davidson Benefits Administrator (WageWorks) at 800-774-4749, option 0 or e-mail harleydavidson@wageworks.com.
What will happen to my Easy Own loan?
It
is your responsibility to contact HDFS (1-800-696-3422) to make
arrangements to make payments on Easy Own loans. The loan provisions
will not change (for example, if you are in the first year, there are
no interest or principle payments; if you are in the second year, there
is no interest payment; if you are in succeeding years, both interest
and principle payments must be made according to the loan agreement).
If you don’t make payments, the loan would default just like any other
retail loan (the default provisions are in the loan documents you
received at the time the loan was finalized). (Loan Supervisor Phone
Number 1-800-555-1807).
Payroll
What happens to the computer purchase plan loan or outstanding employee store balance?
The
balance of payments will be deducted from your last paycheck including
any outstanding vacation pay. If your balance exceeds your final pay
you will be required to make repayment.
Am I eligible for Unemployment pay?
Each
state unemployment office handles unemployment compensation. You will
be eligible to apply for unemployment compensation benefits and the
company will not challenge any claims for unemployment compensation and
will indicate that your employment ended due to lack of work. However,
the unemployment compensation office will determine whether to grant or
deny the benefits. Please contact your local Unemployment Compensation
Office.
What happens to the Vacation pay I have accrued?
You will be paid for all accrued time not already used.
Tuition Reimbursement
If I am currently enrolled in classes will I be able to continue?
Yes. You will be allowed to continue any courses that
you are currently enrolled in as well as any courses that have already
been approved over the next 90 days under the Harley-Davidson Tuition
Reimbursement Procedure. Any courses that have been approved under the
Harley-Davidson Tuition Reimbursement Procedure beyond the 90 day
timeframe will no longer be reimbursable. You are responsible for
notifying your education institution of your employment status. We will
not be accepting or approving any additional reimbursements after
September 25, 2009.
Will I be responsible for repaying the company back for my tuition?
The hourly employee repayment clause does not apply to employees who are terminated due to workforce reductions.
Will there be tuition assistance available for impacted employees?
No, tuition reimbursement is a benefit available for active employees only.
Will I be responsible for submitting my grades to the company upon completion of my courses that end after September 25, 2009?
Impacted employees will be responsible for submitting
their grades to the company upon completion of courses that end after
September 25, 2009. This is also a requirement for employees who paid
for their courses initially and are seeking reimbursement. Acceptable
proof of grades is (1) a receipt of an official school copy of
grade(s), (2) if MSF, a copy of the MSF Certificate card or (3) an
itemized receipt from the school. The grades may be submitted via the
following:
HD-Tuition@harley-davidson.com
(External H-D email)
Harley-Davidson Tuition (USPS)
P.O. Box 653
Milwaukee, WI 53201
Spousal Reimbursement
How does Spousal Reimbursement work once I am laid off?
The spousal reimbursement benefit will continue
throughout the employee’s medical insurance benefit retention period
(as defined in
Article XVI Sec 2
(e) 1) a) p. 32). The employee may claim reimbursement for spousal
medical insurance premiums incurred during this period. Claims must be
submitted prior to March 31st of the following calendar
year. For example, an employee who’s benefit retention period ends
August 30, 2010, must claim reimbursement for premium expenses through
the month of August, 2010, by March 31,
2011. The months of September, October, November, or December, 2010 would not be reimbursable.
Additional Questions
Will there be any recall to temporary jobs?
At this point, there are no plans for temporary jobs in the factory.
Will there be a mass filing for unemployment or do I have to file on my own?
At this point, we are not sure. The company has
agreed to do a mass filing if the unemployment office will allow it.
You will be updated prior to the layoff date as to what you need to do.
Will people from the unemployment office be here to speak to the members?
During the last layoff, we were able to get them to
come speak to the members. We are planning on doing that again but
have not had our meeting with representatives from the unemployment
office at this time. We are going to request a meeting so all affected
employee’s questions can be answered.
Are there any voluntary layoff provisions?
No
If you have a Corp Credit Card what happens?
You need to turn in your credit card and submit an expense report to cover all outstanding items.
Contacts
HR
Matt King 816-270-8825
Todd Frohner 816-270-8580
Kim McClellan 816-270-8828
Unions
Tony Wilson 816-270-8036
Al Hahn 816-270-8881
Bill Crowdes 816-270-8667
John Braswell 816-270-8847