Mercury Marine on Sunday confirmed that the contract proposal formally rejected by union members Aug. 23 expired at midnight Saturday, Aug. 29, without acceptance by the International Association of Machinists and Aerospace Workers (IAM).
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.
“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.”
In light of extreme economic conditions that necessitate the consolidation of its manufacturing capacity, Mercury had submitted a contract proposal to the union leadership that would have enabled the Fond du Lac facility to more effectively compete in a different, much smaller market.
Mercury said it expects to finalize the details of state and local programs over the next few days and that detailed plans for the transition will be announced as they become available. The company expects the full consolidation to take between 24 and 36 months.
“As we begin the planning process, we value the ongoing support of our community, employees and local officials,” Mr. Schwabero said. “We will continue to communicate regularly and openly as transition decisions are made over the coming months.”By: Steve Fleming, Communications Manager / Mercury Marine
