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    8/24/2009
    News out of Oklahoma is much more welcoming

    I took Mercury Marine at its word. No, I’ve not scrutinized the books, but it seems very believable that demand for their products is off 40% and they – and the union jobs they support - will not survive with the current labor contract.

    Blogger. Michael Leon disagrees andgoes for the jugular:
    It's up to the union, they say with no mention of the deranged character of the Brunswick Corp. that would devastate a community with premeditation and in cold blood.

    The company has eroded the number of workers and the union at its Fond du Lac site for the past several years. Now, it's time to really kill.

    …. Just like NewPage and GM before it, Mercury Marine is putting corporate greed before the good of the Wisconsin community in which it has resided for lifetimes.

    Fondy will see a signal moment in its life today but please note that it is corporate greed and betrayal that ought to be on trial and not the union members of (IAM) Local 1947.

    It is Mercury Marine that has given the workers an untenable choice. It is the company that wants to move all its operations to Stillwater, Oklahoma, to be in a non-union state, even though the city of Fond du Lac and the state of Wisconsin have been loyal and faithful partners.
    And Chris Liebenthal adds his thoughts..
    It also appears that Mercury Marine was ready to move anyway. They had already laid off hundreds of workers over the last several years. Now, they were just looking for a convenient excuse. So they offer a piece of crap contract, figuring that the union will reject it, and viola, instant excuse.

    All that said, without knowing all the facts, I cannot say if the union members did the right thing or not, or if it even mattered what they did.
    And Jerry K., who claims to be a stanch (sic) union man and a conservative.
    The sitting management is making an offer the workers will refuse. I understand that with the downturn in the economy that the contracts need to be opened and changes are needed but they must be fair.

    The company is not willing to give guaranties that the jobs will be safe or the company will stay in Fond Du Lac. They only want to give assurances.

    When will someone stickup [sic] for the workers? That is what the union is doing!
    News out of Stillwater, OK is much more welcoming. According to news accounts in the Fond du Lac Reporter and the Stillwater News Press (hat tip to Ripon Mayor Aaron Kramer), Mercury expects to finalize “full consolidation” and a move to Stillwater in the next 24 to 36 months.
    The vote is a strong signal from the union that cannot be overlooked, said Larry Brown, president of the Stillwater Chamber of Commerce.

    However, said Brown, it cannot be ignored that the union retains the opportunity to vote again until Aug. 29…. The union could be playing political mind games with the company and communities, said Brown.

    “They could vote no today to send some sort of message to community and Mercury management," he said, "and turn around tomorrow to vote yes.”

    …. “We will keep fighting until it’s decided … We are a non-union facility. We are a right to work state. We will continue to work with Mercury management … to make sure the best option for future growth and economic viability for the company is Stillwater, Oklahoma.”
    As included in FoxPolitics News Friday, AP over the weekend repeated some of the essentials.
    ….If Mercury Marine, a subsidiary of Lake Forest, Ill.-based Brunswick Corp., shuts down the Fond du Lac plant, it would mean an annual loss of $353 million in workers earnings and an additional 5,900 in lost jobs due to the impact on suppliers, government and business in the area, according to the Fond du Lac County Economic Development Corp.(Emphasis is mine.)
    According to union information via news reports, the average hourly wage is about $20; the proposal calls for 30% lower wages for new hires and workers called back from layoffs. It’s my understanding (again, from news reports) that a key piece of the renegotiated contract included mandatory overtime, as management believed they needed more flexibility than the current voluntary overtime allowed. In what I believe is a management letter to employees, additional contract details are revealed.
    • Buy-out packages of $5,000 to $25,000, based on years of service
    • Medical coverage and contributions will be the same as salary plans.
    • Pension plan frozen, not eliminated, at current $48 per year of service multiplier.
    • Retirement plan becomes defined contribution plan (401K) with Company matching 50 cents for every dollar contributed up to 6 percent on top of benefits already earned.
    • Employees retiring in 2009 may elect current retiree medical plan at current contribution rates.
    • Employees retiring after Dec. 31, 2009 will be offered an optional retiree medical plan with contributions equal to salary retiree medical plan.
    Union workers believe the 30% wage cuts for new hires and those brought back from layoff are untenable and claim retirement and health benefit changes would cause hardships.

    You decide. Have union members made a good decision?

    Jo Egelhoff, FoxPolitics.net




    COMMENTS

    I read the note that the management sent the union workers. Do we have access to the materials provided to the employees from the Union?

    I cannot imagine that sales are going well for the company. I personally bought Yamaha motors. I would have preferred to buy Mercury, but when you are talking thousands of extra dollars......

    Either way, this is a very sad day.

    fox cities news, appleton, wi
    David (Mon Aug 24 07:53:02 2009)

    Jo:
    Well what do you expect when the President of the Union goes on TV and not only states that he and his bargaining committee will vote no, but also goes on to blame not only management but also the community for not supporting them in the past.
    I really feel sorry for the businesses and governing bodies that will be seriously hurt by this move.
    It is not corporate greed but corporate survival. Most contracts give the management the right to set schedules including overtime. I can't believe this contract, if your statements are factual, would make it totally voluntary. The customer doesn't care what is or is not in your contract and will go elsewhere if they cannot get what they want when they want it at a good price.
    I wish the best for Fond du Lac and the surrounding communities. They are going to need it.

    fox cities news, appleton, wi
    Mike Thomas (Mon Aug 24 09:20:04 2009)

    "You decide. Have union members made a good decision?"

    Good for them, I suspect. Bad for the rest of us.

    I recall a report I read a few years ago following a similar decision in Tennessee: company said they could not operate, union defacto voted to close the plant rather than concede wages and benefits.

    The senior members of the union made out like bandits: with state-provided unemployment benefits, union-provided benevits and etc. they were making more money after being laid-off than they were when working.

    How will the guys in the union make out, is my question.

    fox cities news, appleton, wi
    Brian Dunbar (Mon Aug 24 09:35:31 2009)

    When will people wake up and realize that unions are there not for the workers, but for the union bosses, and for political power? Has anyone seen the obscenely expensive union headquarters on some of the online videos, exposing unions for what they are?
    fox cities news, appleton, wi
    emily matthews (Mon Aug 24 10:46:49 2009)

    Great job Jo - People have to remember that the vast majority of people that will lose jobs and income are not the Merc union employees. The company I work for owns 3 properties in FDL that have a total of 325 apartment units. This could drastically impact the vacancy rates in these apartments as well as their overall value. This will have a massive trickle down effect on all business in FDL.
    fox cities news, appleton, wi
    Jim Steineke (Mon Aug 24 10:58:11 2009)

    I happened to be in the car earlier today, listening to Charlie Sykes on WTMJ. A few union guys from Merc had called in and explained why 94% of them voted 'no'.

    I summarize: it's in their best economic interests to do so. An older guy - most of the membership are within a decade of retirement - has no incentive to take a pay and benefits cut if he does not have to.

    I can understand this. There is no loyalty from business to employees, there should be none expected to go the other way. As for loyalty to community ... why should they take one on the chin for Fond du Lac? What has Fond du Lac done for them?

    fox cities news, appleton, wi
    Brian Dunbar (Mon Aug 24 11:50:45 2009)

    As long as the antiquated, adversarial labor/management paradigm remains, these kinds of situations will persist. Business leaders need competent, dedicated employees and employees need fair compensation and some assurance of security for their future. Business managers making 40 times the amount of line workers is just as obscene as line workers making $75 per hour wage and benefits. Until this reality sinks in many other manufacturing businesses will go under. A great opportunity for entrepreneurs who value their colleagues help in building and delivering quality products at an affordable price.
    fox cities news, appleton, wi
    Dennis (Mon Aug 24 18:30:00 2009)




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