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Mercury Marine To Close And Move All Production From Fond du Lac, Wisconsin......
- Thread starter MacGyver
- Start date
phragle
Charter Member
Hopefully Darwinism will prevail....Anyone living under the false reality that they are entitled to $25~$30 an hour for inserting bolt 'B' into hole 'C' all day long with no further knowledge or critical thinking needed is simply dellusional. Destined to implode when finally confronted with reality.
Assistance for "releasing new products? Hard to say what's going on without facts and figures. Also hard to say what the state and local governments have to pay to get them to stay. An awful lot of companies decry government regulations and all, but they almost never do anything without government help.
One has to wonder how attractive manufacturing jobs will be once they move the jobs South. Is this a case where good paying jobs are a thing of the past, and Americans will not only be paying for government incentives for the company's to stay, while having pay reduced 50%? Manufacturing jobs have been moving overseas and elsewhere since the 80's, when it became easy for them to do so. Certain tax benefits (paid for by US), have enabled it to happen. Obviously, some states are easier to deal with than others, but one has to look at historical changes to see how it's actually panned out.
At any rate, everyone's in the same boat, so to speak.
Interesting perspective...
http://bloggingblue.com/2009/08/24/my-thoughts-on-mercury-marine-the-iamaw/comment-page-2/
"Earlier tonight I mentioned that union workers at the Mercury Marine plant in Fond Du Lac rejected contract concessions that would have included a 30% wage cut for new hires and employees called back from layoffs and severely slashed retirement and severance benefits, in addition to the 7-year wage freeze union members had already accepted as part of their last negotiated contract with Mercury Marine. While some conservatives have been quick to attack union members for voting to kill their own jobs.. "
They had already shipped a bunch of jobs to China. I doubt anyone here would be tickled pink if their own jobs had the same changes offered to them.
MacGyver
Charter Member
I wouldn't be happy, but I'd still have a job. The unemployment rate in Fond du Lac county is already over 12%.
Ratickle
Founding Member / Super Moderator
Yes, unless government does something completely different than what they currently do which drives companies completely away from manufacturing in the US.
There was a funny (sick) one here last week. Michigan gave huge tax incentives, as did Holland, so Howard Miller could add 400 jobs. Come to find out that is less than 1/3 of their reductions, and every job is coming from closing a facility in Canada where they went in the first place to save money.
So, drive them out with the highest corporate taxes in the world, lure them back with zero taxes for 12 years. New jobs, Woo Woo!!!!!! Dumb-azzes
Michigan Democrat job creations.....:boxing_smiley:
MacGyver
Charter Member
Looks like the union shouldn't have waited until the last minute.
FOND DU LAC - The union that represents hundreds of workers at Mercury Marine in Fond du Lac ran out of time Saturday night to vote "yes" on a package of contract concessions that the boat engine maker said it needed to remain profitable. Mercury Marine will now start moving jobs out of the state.
"The proposal lapsed and therefore the contract proposal time expired," said Steve Fleming, a company spokesperson.
"This coming week or two we will finalize details of programs that we have with the governments of Oklahoma and Stillwater as well as Wisconsin and Fond du Lac. We expect to be moving work from Fond du Lac to Stillwater by the end of the year."
The union had gathered for a second vote on the concessions package at around 10 o'clock Saturday night, about a week after it overwhelmingly rejected the deal.
Mercury Marine had repeatedly said the deadline for a "yes" vote was midnight, and the union just couldn't assemble enough people in time.
One of the reasons for this was confusion among union members, as some believed the deadline had been extended into late Sunday.
The company said it never approved such an extension.
"That was never agreed upon by us," said Fleming. "We responded to them when we heard that had gone out and we reiterated at that time that the deadline remained midnight."
JOBS MOVING
A couple hours after the deadline passed, the company released a statement saying it will be moving the 850 union manufacturing jobs to the non-union plant in Oklahoma.
The future of the company's corporate headquarters, which includes more than 1,000 additional jobs, still remains in question. Company officials say "in the near future" they expect to make a decision on to what extent the headquarters will remain in Fond du Lac.
Mercury Marine's post-deadline statement included this message from the company's president Mark Schwabero:
“We want to personally thank the business and community leaders of Fond du Lac and Stillwater, our local and state government officials and all of the committed employees of Mercury Marine who have supported us and given us their full effort during this difficult process. This has been a very difficult and stressful time for all involved but, as we said at the beginning of this process, it is our responsibility to make the best business decisions for the company to have a sustainable future."
FOND DU LAC - The union that represents hundreds of workers at Mercury Marine in Fond du Lac ran out of time Saturday night to vote "yes" on a package of contract concessions that the boat engine maker said it needed to remain profitable. Mercury Marine will now start moving jobs out of the state.
"The proposal lapsed and therefore the contract proposal time expired," said Steve Fleming, a company spokesperson.
"This coming week or two we will finalize details of programs that we have with the governments of Oklahoma and Stillwater as well as Wisconsin and Fond du Lac. We expect to be moving work from Fond du Lac to Stillwater by the end of the year."
The union had gathered for a second vote on the concessions package at around 10 o'clock Saturday night, about a week after it overwhelmingly rejected the deal.
Mercury Marine had repeatedly said the deadline for a "yes" vote was midnight, and the union just couldn't assemble enough people in time.
One of the reasons for this was confusion among union members, as some believed the deadline had been extended into late Sunday.
The company said it never approved such an extension.
"That was never agreed upon by us," said Fleming. "We responded to them when we heard that had gone out and we reiterated at that time that the deadline remained midnight."
JOBS MOVING
A couple hours after the deadline passed, the company released a statement saying it will be moving the 850 union manufacturing jobs to the non-union plant in Oklahoma.
The future of the company's corporate headquarters, which includes more than 1,000 additional jobs, still remains in question. Company officials say "in the near future" they expect to make a decision on to what extent the headquarters will remain in Fond du Lac.
Mercury Marine's post-deadline statement included this message from the company's president Mark Schwabero:
“We want to personally thank the business and community leaders of Fond du Lac and Stillwater, our local and state government officials and all of the committed employees of Mercury Marine who have supported us and given us their full effort during this difficult process. This has been a very difficult and stressful time for all involved but, as we said at the beginning of this process, it is our responsibility to make the best business decisions for the company to have a sustainable future."
MacGyver
Charter Member
More...
Second Mercury Marine Contract Vote Termed Invalid
Mercury Marine union members got their opportunity for a second vote on a proposed contract from the company, but it turned out too little too late Saturday night. Two-hundred and fifty workers cast their ballots before midnight, but the company stuck to its deadline and declared the results invalid. Union negotiator Rollie Chase says as a result the company official they talked to on the phone, Mercury Vice President of Human Resources Ray Atchinson, termed it a rejection. Mercury spokesman Steve Fleming says they'll start developing their plan for consolidation of manufacturing jobs to Stillwater, Oklahoma. He says it will take some time now to make a decision about plans for Mercury's corporate headquarters. Fleming says there's still some work that has to be done with state and local officials before that decision is reached.
8/30/09 - 2:16am: Mercury Issues Press Release
Mercury Marine Proposal Lapses Without Acceptance by IAM
FOND Du LAC, Wis., (August 30, 2009) - Mercury Marine on Sunday confirmed that the contract proposal formally rejected by union members Aug. 23 expired at midnight Friday, Aug. 29, without acceptance by the International Association of Machinists and Aerospace Workers (IAM).
The IAM conducted a last-minute vote on the original proposal terms and conditions but did not complete the process to a definitive conclusion prior to the expiration of the proposal.
As a result, Mercury said it will continue to operate the Fond du Lac facility under the terms and conditions of the existing contract, which expires in 2012. Manufacturing workers in Fond du Lac are represented by the IAM, Local chapter 1947. As previously announced, the company will now begin the transition planning process to its Stillwater, Okla., facility.
"We want to personally thank the business and community leaders of Fond du Lac and Stillwater, our local and state government officials and all of the committed employees of Mercury Marine who have supported us and given us their full effort during this difficult process," said Mark Schwabero, president of Mercury Marine. "This has been a very difficult and stressful time for all involved but, as we said at the beginning of this process, it is our responsibility to make the best business decisions for the company to have a sustainable future.
"We will work closely with our teams in Fond du Lac and Stillwater to develop and communicate a smooth transition plan which we hope to implement with minimal disruption to our business and the communities."
In light of extreme economic conditions that necessitate the consolidation of its manufacturing capacity, Mercury had submitted a contract proposal to the union leadership that would have enabled the Fond du Lac facility to more effectively compete in a different, much smaller market.
Mercury said it expects to finalize the details of state and local programs over the next few days and that detailed plans for the transition will be announced as they become available. The company expects the full consolidation to take between 24 and 36 months.
"As we begin the planning process, we value the ongoing support of our community, employees and local officials," Mr. Schwabero said. "We will continue to communicate regularly and openly as transition decisions are made over the coming months."
Second Mercury Marine Contract Vote Termed Invalid
Mercury Marine union members got their opportunity for a second vote on a proposed contract from the company, but it turned out too little too late Saturday night. Two-hundred and fifty workers cast their ballots before midnight, but the company stuck to its deadline and declared the results invalid. Union negotiator Rollie Chase says as a result the company official they talked to on the phone, Mercury Vice President of Human Resources Ray Atchinson, termed it a rejection. Mercury spokesman Steve Fleming says they'll start developing their plan for consolidation of manufacturing jobs to Stillwater, Oklahoma. He says it will take some time now to make a decision about plans for Mercury's corporate headquarters. Fleming says there's still some work that has to be done with state and local officials before that decision is reached.
8/30/09 - 2:16am: Mercury Issues Press Release
Mercury Marine Proposal Lapses Without Acceptance by IAM
FOND Du LAC, Wis., (August 30, 2009) - Mercury Marine on Sunday confirmed that the contract proposal formally rejected by union members Aug. 23 expired at midnight Friday, Aug. 29, without acceptance by the International Association of Machinists and Aerospace Workers (IAM).
The IAM conducted a last-minute vote on the original proposal terms and conditions but did not complete the process to a definitive conclusion prior to the expiration of the proposal.
As a result, Mercury said it will continue to operate the Fond du Lac facility under the terms and conditions of the existing contract, which expires in 2012. Manufacturing workers in Fond du Lac are represented by the IAM, Local chapter 1947. As previously announced, the company will now begin the transition planning process to its Stillwater, Okla., facility.
"We want to personally thank the business and community leaders of Fond du Lac and Stillwater, our local and state government officials and all of the committed employees of Mercury Marine who have supported us and given us their full effort during this difficult process," said Mark Schwabero, president of Mercury Marine. "This has been a very difficult and stressful time for all involved but, as we said at the beginning of this process, it is our responsibility to make the best business decisions for the company to have a sustainable future.
"We will work closely with our teams in Fond du Lac and Stillwater to develop and communicate a smooth transition plan which we hope to implement with minimal disruption to our business and the communities."
In light of extreme economic conditions that necessitate the consolidation of its manufacturing capacity, Mercury had submitted a contract proposal to the union leadership that would have enabled the Fond du Lac facility to more effectively compete in a different, much smaller market.
Mercury said it expects to finalize the details of state and local programs over the next few days and that detailed plans for the transition will be announced as they become available. The company expects the full consolidation to take between 24 and 36 months.
"As we begin the planning process, we value the ongoing support of our community, employees and local officials," Mr. Schwabero said. "We will continue to communicate regularly and openly as transition decisions are made over the coming months."
Ratickle
Founding Member / Super Moderator
I think you mean already happening.
In Michigan , they give the deals by having companies promise to create more jobs with the tax savings. Then, when you try to check how well it worked, the results are illegal for the Executive branch to give out, so no one knows.:boxing_smiley:
Magicfloat
Charter Member
If I were going to buy a new Merc outboard,I would have the dealer check the build date.It is very easy to do if you have the engine serial #.
Ratickle
Founding Member / Super Moderator
Which models are made at which locations?
And, does the same union represent both locations? Or, with Oklahoma being right to work, no union there?
phragle
Charter Member
I am wondering if property/buisness/income taxes can legally be selectively imposed in the first place...I believe it must somehow be some kind of discrimination. If you have a company building widgets and your faithfully paying your taxes, and the city lures another widget company with promises of no taxes, free water and sewage, a new driveway and parkinglot plus zoning variances... how is that fair for your company? how does that help the local economy when company A (who has been paying all along) realizes that if they move 2 states over, they can get a deal where they don't pay taxes etc..... company A would be stupid NOT to move.l
It is and endless cycle. Most companies do what is expedient and short-term profitable to do. They don't have much long range vision, but state and local governments always give them the benefit of the doubt. If you give them some freebies, they'll take them. The actual terms of the deals are never really interpreted as being a contract to the companies, so you'd be a fool to rely on them long term.
I suspect the people of Stillwater and surrounding areas will find this out at some point, the same as every other locale has. I seriously doubt that, with current ownership and management, Mercury can be relied on long term no matter where they locate. It always sounds great when you read their claims and problems, but when you follow the situation to the end, all you generally find is one of management problems and mistakes continually addressing long term problems with short term solutions.
I believe their shareholders are all too familiar with their decision making.
Buoy
Founding Member
In many ways, I agree.
But Mercury... why should they honor the vote?
The union was greedy, and felt it couldn't be replaced. When Merc said "OK, see ya later, bye!"
Now the union realize they don't hold the trump card.
Merc put out a deadline to make a deal - the union didn't meet the deadline.
Merc will incur expense to move the machinery, and tooling, and hiring new employees and training.
But, in the big picture, what is best for Merc?
I understand this affects guys like you and Wayne that live in that area, and Merc is a major job source for the area. It affects the entire area financially. "Sarah's sandwich shack" won't have any lunch customers anymore... etc, etc...
But, they did it to themselves.
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