Fond du Lac workers reject Mercury Marine's contract offer

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Business Times, Milwaukee, WI

Published: 08/21/2009

By a "wide margin," members of the International Association of Machinists and Aerospace Workers (IAMAW) Local 1947 rejected a contract offer by Mercury Marine this morning, meaning approximately 1,800 jobs could be leaving Wisconsin for Oklahoma.

Specific numbers were not released by union officials early this afternoon, but The Fond du Lac Reporter reported that the union members rejected the company's offer, which included reduced wages and benefits and came just one year after the company had approved a previous contract with the union.

Company officials said last week that if the union rejects the latest offer, the firm will move to consolidate its manufacturing operations in Stillwater, Okla.

Late last week, company officials said the deadline for a final decision from the union is later this week, leaving the door open for another vote by union members, according to The Reporter.

“Obviously we are extremely disappointed in the outcome of the vote,” Joe Reitemeier, president and CEO of the Fond du Lac Area Association of Commerce, told The Reporter. “We would hope that the fact that the contract offer doesn’t expire until next weekend that that would provide some opportunity for a second vote or a reconvening of the negotiations."

Mercury said it expects to consolidate much of its Fond du Lac manufacturing operations with its existing operations in an expanded Stillwater facility. Movement to Stillwater could begin within 30 days, the company said.

"We appreciate the patient support of our employees and communities as we’ve gone through this process," said Mark Schwabero, president of Mercury Marine.

"This has been a very difficult and stressful process for all involved. We will work closely with our team in Fond du Lac to develop and communicate a transition plan for this 24-36 month process."

Brenda Hicks-Sorenson, president of the FDL Economic Development Corp., said, "We've asked them (Mercury Marine) if there is an opportunity to have a discussion about the location of the headquarters and they said yes. We're going to meet and focus on the headquarters possibility."

People in Fond du Lac are now concerned about the future of their community, Hicks-Sorenson said.

"We've had a number of hits to manufacturing here," she said. "And for a city and state that was build on manufacturing it's sad and disheartening now."

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