Made the Wall Street Journal:
SEPTEMBER 4, 2009 Two Cities in Fight Over Factory Jobs at Mercury
By JOE BARRETT
FOND DU LAC, Wis. -- As union workers at a Mercury Marine outboard-engine plant here vote on a contentious new contract, the fates of two cities hang in the balance.
This city of 43,000 on the southern tip of Lake Winnebago stands to lose many of Mercury's nearly 2,000 union and other jobs if workers reject the contract for a second time in less than two weeks. More than 800 miles away, Stillwater, Okla., a town of about the same size, is waiting to see if it will pick up many of those jobs or lose most of the 385 jobs at Mercury's plant there.
View Full Image
Associated Press
A sign urging a 'no' vote on the third round of balloting on the proposed Mercury Marine labor contract sits on the terrace Thursday at the Fond du Lac, Wis., Labor Center.
"It's an emotional time for both communities," says Tim Larkin, Fond du Lac's city council president.
In an added twist, the battle in Wisconsin is being led by workers who acted without the backing of their own union in a desperate attempt to save their jobs.
While the U.S. appears to be headed out of one of the steepest recessions in decades, companies are playing hardball with unions and even entire cities in an effort to cut costs, improve efficiency and push through changes that will help them perform better over the long term. Mercury Marine, a unit of Lake Forest, Ill.-based Brunswick Corp., has been offered undisclosed financial incentive packages by both Oklahoma and Wisconsin to try to sway the company one way or the other.
The Mercury episode shows how determined workers are to hold onto precious jobs in this economy. Mercury is Fond du Lac's largest employer and has produced outboard motors there for nearly 70 years. Mercury's jobs are critical in a city where unemployment hit 11.4% in July, up from 5.4% a year ago, according to the Wisconsin Department of Workforce Development.
Mercury Marine's tale has taken some unexpected turns. When workers first saw management's contract proposal a few weeks ago, they were upset that it called for deep concessions, including a three-year wage freeze and higher out-of-pocket costs for health care, said Fred Toth, a 15-year company veteran.
When the proposal came up for a vote on Aug. 23, it was resoundingly rejected.
Most workers figured it was just the first round in a protracted battle. But on the night of the 23rd, Mercury said it would begin moving some of the 850 jobs in Fond du Lac to Stillwater. Another 900 salaried workers are employed at the facility, including at the corporate headquarters. Many of those jobs could also go to Stillwater if the vote stood.
Larry Brown, president of the Stillwater Chamber of Commerce, said he and other officials immediately started preparing for the influx of jobs.
But Mr. Toth and two friends from the plant, Rick Schmidt and Felipe Rodriguez, weren't giving up. They started gathering signatures on a petition for a new vote. By the end of last week, they had hundreds of signatures, but were thrown a curve when union officials said they were in the wrong format. Among other things, some signatures were illegible.
Undaunted, the trio started over Saturday afternoon in the rainy parking lot of a shuttered grocery store. They broadcast over local radio that they were still gathering signatures. Within about five hours, they had gathered more than 300 names.
"People came from Sheboygan, Madison, Wisconsin Dells. People showed up in suits from wedding receptions," Mr. Schmidt said.
That night, around 10 p.m., the union began another vote, trying to get as many ballots cast as possible before the old contract expired at midnight.
Mr. Brown in Oklahoma monitored events at his home computer until about 3 a.m. Sunday, when he felt satisfied by a management statement that the new vote wouldn't be accepted because the contract had expired. Union officials formally called off that vote Monday.
Both union and company officials declined to comment.
On Tuesday, union officials and Mercury managers met for more than two hours. Mercury agreed to allow yet another union vote. That evening, Mercury issued a statement saying workers who had expressed a desire for another vote deserved to be heard. Suddenly, there was optimism again in Wisconsin and confusion and anger in Oklahoma. "It's been a roller-coaster," Mr. Brown said.
Thursday and Friday, union workers are again casting ballots. Those in the "yes" camp are optimistic. "When we saw the contract for the first time, everyone you talked to said it was garbage," Mr. Rodriguez said. "But at least with this, you have a job."
Write to Joe Barrett at
joseph.barrett@wsj.com