Union Vote Could Send 800 Mercury Marine Jobs to Stillwater

Union workers in Wisconsin rejected cuts, so Mercury Marine said it will send over 800 jobs to Stillwater's non-union plant.

Sunday, August 23rd 2009, 6:41 pm

By: News 9


Staff and Wire Reports

FOND DU LAC, Wisconsin - Over 800 jobs could be making their way to Stillwater after a union vote was made for a boating business that has a factory in Stillwater.

Union workers at Mercury Marine in Wisconsin rejected a package of wage and benefit concessions in a vote that could jeopardize their jobs. The boat engine maker said the concessions, including lower pension plans and health care benefits, were needed or it would move the work to a nonunion plant in Oklahoma.

On Monday, Mercury Marine President Mark Schwabero agreed to meet with union leaders.  Mercury Marine spokesman Steve Fleming said Monday the meeting is Tuesday at the request of International Association of Machinists and Aerospace Workers, Local 1947.

Mercury Marine manufactures higher end boat engines and has been a major part of Stillwater for nearly 35 years.

Mercury Marine issued a statement after the vote saying it will move many of its Fond du Lac manufacturing operations to its facility in Stillwater over the next two to three years.

The vote is exciting news for those in Oklahoma but city leaders say they're cautiously optimistic.

"The union has until the 29 to accept the contract changes put forth by the MM management. It's definitely a good sign for us, but that means there's a long way to go," said Josh McKim, the Stillwater Director of Economic Development.

Manufacturing jobs have been on the decline as the recession takes its toll on Oklahoma. Track jobs losses by county and industry.

Steven Fleming, the spokesperson for Mercury Marine said the company is not surprised by the union vote and there is a slight chance for a re-vote by Saturday. There will be a meeting between the company and the union this week to discuss details.

"We're disappointed because it takes away one option that's a good option and on the other hand, we have an equally viable and good option in Stillwater," Fleming said.

Union leaders did not immediately release Sunday's tally but said the vote was "overwhelming" to reject what the company called its final offer.

The International Association of Machinists and Aerospace Workers, Local 1947, represents 850 workers at Mercury Marine, the largest employer in the eastern Wisconsin city of Fond du Lac.

Mercury Marine had asked for changes to a four-year contract it signed a year ago. The company had said workers would see no pay cuts under its proposal, but the union said workers were asked give up 2 percent pay raises in each of the last two years of the contract. The average hourly wage now is about $20, the union said.

The company said it would continue to operate the Fond du Lac facility for now under the terms and conditions of the existing contract, which expires in 2012.

"This has been a very difficult and stressful process for all involved," Mark Schwabero, president of Mercury Marine, said in a statement. "We will work closely with our team in Fond du Lac to develop and communicate a transition plan for this 24-36 month process."

Local 1947 President Mark Zillges said Friday there would be no further negotiations. He did not immediately return a phone call Sunday seeking comment.

Fond du Lac city manager Thomas Herre called the vote "a huge disappointment."

"Time will tell what it means," he said. "On the face of it, certainly nothing good is going to happen as a result of turning it down today."

Mercury Marine's MerCruiser plant in Oklahoma, where Fond du Lac's production jobs could go, employs about 380 people.

The Stillwater community had posted banners and Web sites to support the long time company

"MM is a part of a character of Stillwater, so you pull apart of what Stillwater is away and it really has a deeper impact than just the monetary," McKim said.

The number of jobs that could move will be determined by the economic situation.

The company founded in 1939 as Kiekhaefer Corp. of Cedarburg also has manufacturing operations in Tulsa, Okla., as well as South Carolina, Florida, Mexico, Japan, United Kingdom, Belgium and China.

More on News9.com:
Union Votes Sunday to Decide Fate Of Stillwater's 'Mercury Marine'
Stillwater Leaders Fight to Keep Research and Development Company

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