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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."