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Posted: Aug. 24 2009,4:50 pm

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NEW: Mercury will expand Stillwater MerCruiser

Stillwater NewsPress

Now that union workers have rejected a contract with concessions for Mercury Marine labors in Wisconsin, the company will move forward to expand its MerCruiser plant in Stillwater, the company announced today.

Union workers at Mercury Marine voted this morning to reject a contract proposal that company officials said was necessary to keep Mercury in Fond du Lac.

Members of the International Association of Machinists and Aerospace Workers â€“ the union that represents production workers at Mercury Marine in Fond du Lac â€“ met at Fond du Lac High School at 9 a.m. today to cast ballots that were later tallied at the headquarters of the IAMAW Local chapter 1947.

The proposal, which was presented to the union Aug. 19, is valid until Aug. 29 at midnight. The union leadership chose to accelerate the vote to Aug. 23.

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.

In light of economic conditions the company says will lead to a smaller market, Mercury had submitted a contract proposal to the union in an effort to reduce costs, improve operation efficiencies and ensure the company's competitiveness, company officials said.

Following the unionâ€™s vote, the company will consolidate much of its Fond du Lac manufacturing operations with its existing operations in an expanded Stillwater facility, Mercury Marine said Sunday.

Mercury said it expects to finalize details of state and local support programs over the next few days. Detailed plans and programs will be announced as they become available, and the company said it expects the full consolidation to take between 24 and 36 months.

"We appreciate the patient support of our employees and communities as weâ€™ve gone through this process,â€ said Mark Schwabero, president of Mercury Marine, in a statement posted on the corporate Web site. www.mercurymarine.com â€œThis 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.â€

"Local Lodge 1947 of The International Association of Machinists and Aerospace Workers has overwhelmingly voted to reject the "final contract modification proposal" of Mercury Marine," the IAM Local posted on its Web site www.iam1947.org after Sunday's vote.

Mercury Marine Union Rejects Company's Final Offer.

The AP (8/24) reports, "Union workers at Mercury Marine put their jobs at risk Sunday when they rejected a package of wage and benefit concessions the boat engine maker said it needed or it would move their work to a nonunion plant in Oklahoma." Union leaders said "the vote was 'overwhelming' to reject what the company called its final offer." The International Association of Machinists and Aerospace Workers "represents 850 workers at Mercury Marine, the largest employer in the eastern Wisconsin city of Fond du Lac and the world's largest manufacturer of boat and recreational marine engines." 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 to give up 2 percent pay raises in each of the last two years of the contract."

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