Monday, August 17, 2009

We need Merc

Letter to the Stillwater NewsPress

We need Merc

I have lived in Stillwater since 1963. During this period I have seen Stillwater grow and develop into a viable and complex economic community.

Over 30 years ago Mercury Marine became part of our community and a major manufacturing company that has provided employment for hundreds of people and has taken on the role of a responsible community citizen.

I have had the privilege of knowing a number of persons associated with Mercury Marine/Mercruiser, and I often heard great things about the company.

It was a pleasure to work with Bud Agner, a former manager, and a number of other employees over the years, who were and still are responsibly working on community issues to improve the Stillwater community. Always, I appreciated their efforts.

Stillwater, in my view, must not lose Mercury Marine/MerCruiser! During these difficult economic times we must do our very best to support and maintain Mercury Marine’s position in Stillwater.

I want to thank the president of the Chamber of Commerce, Larry Brown, Sen. Halligan, and Reps. Williams and Denney for their very active efforts to enable Mercury Marine to give serious consideration to staying in Stillwater.

Also, I want to express my appreciation and thanks to other business leaders who have been part of this effort. I appreciated Barry Eller’s recent letter to the editor.

My plea is for Mercury Marine to stay in Stillwater. Mercury Marine is critical to the economy of Stillwater and Oklahoma.

It has had over $100 million in contracts with Oklahoma suppliers and logistics companies.

In the Stillwater plant it has invested over $20 million annually in research and development, and nearly $10 million a year in capital improvements.

As our economy improves, and it will in time, Mercury Marine/Mercruiser will continue to grow and develop. It enjoys the foundation and the insightful leadership to make that happen.

I am looking forward to Mercury Marine/Mercruiser continuing to be part of our community and continuing its role as a great business and citizen of Stillwater.



Harold Sare

Stillwater

Thursday, August 13, 2009

Mercury Marine, union continue talks

Article from The Business Journal of Milwaukee

Management of Mercury Marine Inc. continued negotiations with the International Association of Machinists and Aerospace Workers in Fond du Lac on Tuesday in talks aimed at saving about 1,900 local jobs.

The two sides resolved several items and remain on track to meet the target of completing negotiations by Aug. 17, according to a statement issued by the company.

Representatives of the company and the union met for about seven hours Tuesday.

Negotiations were scheduled to continue Wednesday morning, with additional sessions planned for Thursday and Friday, if needed.

Mercury Marine is attempting to decrease the level of underutilization of its facilities and consolidating its operations in either Fond du Lac or Stillwater, Okla., is being considered.

If an agreement is reached, union members would then vote on ratification. A decision by Mercury Marine regarding its next step would be determined in part by the union’s response to the tentative agreement, company management said.

The marine engine manufacturer employs about 1,900 workers in Fond du Lac, split about evenly between hourly production employees at its factory and salaried personnel at the company’s corporate headquarters.

Mercury Marine is a subsidiary of Lake Forest, Ill.-based Brunswick Corp. (NYSE: BC) with about $2 billion in annual revenue.

'Roadblocks' noted by Mercury Marine union leader

Article from Oshkosh, WI. The Northwestern

The business representative for District 10 of the International Association of Machinists and Aerospace Workers said Mercury Marine has thrown a "lot of roadblocks" their way.

"We're talking about 40 to 50 years of hard negotiations with a company — in our talks going on — I would say they're rewriting (the contract)," Russell Krings said Wednesday night.

The two sides were set to resume talks at 9 a.m. today at Ramada Plaza Hotel. The session would mark the third this week as the sides work toward finalizing negotiations by Monday.

Mercury officials say they intend to reach a decision by Labor Day regarding possible consolidation of operations at its Fond du Lac headquarters or at Stillwater, Okla.

The company says if an agreement is reached with the IAM, it is expected that a vote would be conducted by members of the union within the following two weeks.
Krings said "it's way too early" to be making that type of statement.
Negotiations could continue Friday, if needed.

The company, in a press release issued Wednesday evening, said a decision by Mercury regarding its next step would be determined in part by the union's response to any tentative agreement.

Krings said he would do everything in his power, along with the negotiating committee and other representatives, to keep as many jobs as possible at Mercury Marine in Fond du Lac.

Wednesday, August 12, 2009

Merc union talks set to wrap up Monday

Article from Stillwater News Press
by Monique Headley


Merc union talks set to wrap up Monday

• Former president says long-range operation costs favor Stillwater

Union negotiations with Mercury Marine are expected to conclude by Monday. If an agreement is reached between Mercury and the union, union members may be called upon to vote on ratification within the following two weeks. A corporate decision regarding the next step would be determined in part by union response.

Mercury continues to work toward reaching a decision by the end of summer regarding possible consolidation of its Fond du Lac, Wis., and Stillwater operations.

The company has had several meetings with members of Local 1947 of the International Association of Machinists and Aviation Workers. Additional sessions were slated for 10 a.m. today with others possible on Thursday or Friday, said a representative of Mercury Marine.

According to posted comments from Mercury Marine President Mark D. Schwabero, “The current market requires us to make some very critical decisions over the next few weeks. We are bargaining not for enhancements or over political or philosophical differences, we must restructure our business to compete successfully in a very different market.”

All aware weigh the pros and cons of the situation.

Having spent time in Stillwater and Fond du Lac, former president of MerCruiser from 1990-2001, Barry Eller said to move operations, machinery, equipment and people from Stillwater to Fond du Lac, would be less work.

“The major issue for me, personally, that I would be looking at are the long-range costs of operation,” Eller said. “In the long run, I think being a nonunion workforce in a Right To Work state, you have a lot more flexibility which allows you to be a lot more productive.”

Eller believes the post-recession market will return to previous levels.

“Every time there has been a recession, the industry has come back - bigger and stronger,” he said.

Though not involved in negotiations, Eller said management is likely working to determine what the union will agree to and to make a decision. The company must also consider the incentives offered by Wisconsin and compare with those of Oklahoma, he said.

“They have good management and are accountable to shareholders,” Eller said. All employees are shareholders, he said.

As shareholders, said Eller, the top priorities are to have a job and protect the value of Brunswick stock shares.

“They will benefit from whatever decision is made,” he said.

Ultimately, said Eller, the decision management makes is not a reflection on the people or whether they do a good or bad job. “The industry has shrunk so much, management has to consolidate operations in order to survive and ... be a viable company,” Eller said. “The marine industry has been devastated. What is the recession for everyone else is three to four times that for the marine industry.” The perception of recreational dollars must return to income and consumer confidence, he said.

According to Eller, such unprecedented and low boating industry sales are no reflection on management. Mercury has maintained marketshare, he said.

From 2001-2004, Eller was also responsible for Wisconsin operations of the Original Equipment Manufacture division sales and product to boat building customers.

“I think the quality of the workforce in Stillwater is second to none. They have an excellent work ethic and are very conscientious on quality of product. They are very, very understanding on what it takes to keep a customer,” Eller said.

Terms of negotiation remain closely guarded.

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Mercury: Talks with union to continue

Below is a post from the FDL Reporter regarding negotiations between Mercury Marine and its union in Fond Du Lac:

August 12, 2009
Mercury: Talks with union to continue

Negotiations between representatives of Mercury Marine and its hourly union employees — a key component as Mercury decides whether to consolidate all or part of its operations in Fond du Lac or Stillwater, Okla. — are expected to continue today.

Company officials said some issues were resolved Tuesday.

Mercury Marine officials have presented wage and benefit proposals to the leadership of the International Association of Machinists (IAM) and Aerospace Workers Local 1947.
The two sides have been meeting at Ramada Plaza Hotel. The company is seeking changes in three areas: work force flexibility, benefits and wages.

Further discussions are planned Thursday and Friday, if needed. Negotiations are scheduled to conclude Monday. If an agreement is reached, a vote by union members is expected within two weeks.

Mercury: Some union issues resolved today

Below is a post from the FDL Reporter regarding negotiations between Mercury Marine and its union in Fond Du Lac:

August 11, 2009
Mercury: Some union issues resolved today

Negotiations between representatives of Mercury Marine and its hourly union employees — a key component as Mercury decides whether to consolidate all or part of its operations in Fond du Lac or Stillwater, Okla. — are expected to continue today.

Company officials said some issues were resolved Wednesday.

Mercury Marine officials have presented wage and benefit proposals to the leadership of the International Association of Machinists (IAM) and Aerospace Workers Local 1947.
The two sides have been meeting at Ramada Plaza Hotel.

The company is seeking changes in three areas: workforce flexibility, benefits and wages.

Further discussions are planned Thursday and Friday, if needed. Negotiations are scheduled to conclude Monday. If an agreement is reached, a vote by union members is expected within two weeks.