MERCURY MARINE - SUNDAY UPDATE

Mercury Marine says it won’t honor second vote - Company begins planning transition to Stillwater, Okla.
SOURCE: Milwaukee Journal-Sentinel
A last-minute decision Saturday to have a second vote on a labor contract at Mercury Marine Inc. was effectively killed early Sunday when the company said it would not accept the results of any ballots cast after midnight.

Late Saturday night, the International Association of Machinists and Aerospace Workers Lodge 1947 announced there would be a second vote on the contract proposal that was scheduled to expire at midnight. Voting began at the union hall in Fond du Lac shortly after 10 p.m., was expected to last until midnight and continue on Sunday until 6 p.m.

But early Sunday morning, union officials said a Mercury Marine executive told them the company would not accept any ballots cast after midnight.

Thus, the polls will not be open Sunday as announced earlier, said Dan Longsine, the union’s chief negotiator.

Ballots cast Saturday night will probably be voided, Longsine said. The union had wanted to continue voting on Sunday, thus giving members adequate opportunity to cast their ballots.

In a statement released at 2:15 a.m. Sunday, Mercury said:

"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."

Last Sunday, union members turned down the seven-year contract proposal that would have resulted in a wage freeze and a 30% pay cut for new hires and any employees called back to work after being laid off. Health care costs paid by employees also would have been increased.

Union officials said that proposal was rejected by a wide margin. As a result of the vote, company officials have said they’re moving hundreds of manufacturing jobs to a non-union plant in Stillwater, Okla.

But some employees circulated petitions calling for a second vote on the contract proposal before it expired. Several hundred employees signed the petitions, which resulted in the last-minute decision to schedule another vote.

The company has repeatedly said its proposal was a best and final offer, and it was not interested in further negotiations after the deadline.

Union blames the company for failed tally
SOURCE: Fond du Lac Reporter
Three union members emerged Saturday as leaders in the fight to keep Mercury Marine in Fond du Lac.

As the clock ticked down to a deadline of midnight Saturday, Mercury Marine employees Fred Toth Jr., Rick Schmidt and Felipe Rodriguez stood in the rain, rallying in the 11th hour for "yes" votes in an effort to save more than 800 manufacturing jobs.

Their perseverance bought them a second vote on a union contract proposal that was "overwhelmingly" rejected the first time in an Aug. 23 vote by International Association of Machinists and Aerospace Workers Lodge 1947.

"We will have a second vote tonight," Toth confirmed earlier in the evening. "People were telling us to keep fighting. Not to give up."

Mercury Marine company spokesperson Mark Lee said that company officials would not extend the deadline, and the company stood firm with a midnight Saturday deadline.

"That means that votes have to be cast, tabulated and communicated to the company by that time," Lee said.

Rollie Chase, IAM Lodge 1947 union negotiator, said plans were to run a vote from 10 p.m. to midnight and continue Sunday and Monday to allow members time to vote.

Chase said at about midnight Saturday that Mercury Marine sent a letter to union leaders that if votes were not tallied by midnight, Mercury Marine would deem that as a rejection.

"(Merc) had no intention of staying here," IAM Lodge 1947 President Mark Zillges said. "They wanted to leave and this is what they did again. We can't run an election on a two-hour notice and be fair to any of these members."

Deadline

Mercury Marine had given the midnight deadline for the union to accept a contract proposal that calls for wage and benefit concessions, otherwise the company would begin transitioning jobs to Stillwater, Okla.

The Labor Center on East Bank Street remained an epicenter of activity late into the night Saturday as the contract vote awaited an outcome. Union employees turned out by the hundreds to vote again on contract changes that would freeze wages for seven years, and lower rates for new employees or recalled employees.

"I feel grateful that people who had the opportunity to really think about their choice were able to vote appropriately," said Kati Ford at the Labor Center on Saturday night.

Public officials remained in meetings most of the day with IAM Lodge 1947 representatives, urging them to hold a second contract vote.

Fond du Lac County Executive Allen Buechel said it's what they'd been hoping for all along.

"I think it's terrific. It shows that democracy still works. They clearly decided that there was a majority of members who wanted a second vote, and it likely means that they would vote in favor of the contract," he said

Buechel was joined during the talks on Saturday by City Manager Tom Herre and state Sen. Randy Hopper.

Herre said good, positive discussions went on inside the Labor Center.

"I'm extremely pleased that at the very least folks are getting the opportunity to express their opinions now that they've had time for this to sink in," he said. "Certainly we are hopeful the company will accept this. There's a lot of good groundwork that's been done over the past few days."

Mercury Marine President Mark Schwabero has said the concessions are needed to keep the company competitive in a shrinking market.

Before the union's Aug. 23 vote, he said, "This isn't a business cycle. This is a fundamental resizing of the industry we serve."

Signatures

By Saturday afternoon, the trio of foundry workers had staked themselves out in the parking lot of the old Pick 'n Save on West Scott Street, beseeching their fellow union members to come down and sign a petition calling for a second contract vote.

Rodriguez said he was told by Mercury Marine Union President Mark Zillges Saturday morning that 440 signatures, or half of the potential union voters, might be enough to make a difference. Local union officials had said they were waiting for clarification on the legality of a second vote from the International Association of Machinists and Aerospace Workers nine-state Midwest territory.

AIM union leaders, however, told local union officials a second vote on Mercury Marine's contract offer won't happen unless there are significant changes to the proposal. Mike King, a representative from that office, had said, "We have nothing new to vote on."

Undaunted, Toth said that they had received 455 signatures by 8 p.m. and noted that Hopper had taken down that number and was heading off to the labor union.

A rally held Friday night at Lakeside Park drew about 200 people in support of the petition calling for a second contract vote. All three employees revealed they had voted yes to contract concessions to save everyone's jobs.

Throughout the city, the focus in the 11th hour extended beyond just the future of 1,900 employees of the local marine engine manufacturer. The economic loss of the Wisconsin company could impact 250 companies in Fond du Lac County, and another 1,000 statewide, said Brenda-Hicks Sorensen, president of the Fond du Lac County Economic Development Corporation.

City and county leaders and a Mercury Marine representative met behind closed doors for several hours Friday to go over new incentive packages. County Executive Al Buechel said the package offered by the county was the biggest any county has made to a Wisconsin business, but that was inclusive of Mercury Marine remaining and expanding here.

Another incentive package had been developed if it came down to keeping just the headquarters of the company, which affects about 850 jobs, here in Fond du Lac.

"Actually the company, the city and county have pretty well worked out either option," Buechel said.
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And the view in Oklahoma:
NEW: Union deadline passes
SOURCE: Stillwater NewsPress
Mercury Marine plans to move to Stillwater.

"The company will now begin the transition planning process to its Stillwater, Okla., facility," according to a statement from Mercury.

A few hours into Sunday morning, Mercury confirmed plans to relocate plant operations to Stillwater from Wisconsin. The company expects the full consolidation to be completed within 24 and 36 months.

According to a Mercury statement, time expired on a last-minute Saturday union revote, declaring it invalid because it was not completed by midnight. The proposal rejected by the union August 23 was upheld as the final word of the union to the last, best offer of Mercury management.

“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.”

A worker at Mercury Marine's Stillwater MerCruiser plant, poised to gain hundreds of jobs and an expanded product line with the move, expressed relief, saying stress should ease and the Stillwater plant should now be able to get back to normal working conditions.