Mercury Marine Workers Shoot Themselves
In a move that could cost them their jobs, Mercury Marine Inc. employees Sunday by a large margin rejected contract concessions that would have included lower wages for new hires and employees called back from layoff.
Not only have they voted themselves out of a job, but they have voted to piss away the thousands of jobs that rely on that plant too.
Well…I guess they showed them, huh?!
Fricken morons.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1412 hrs
Before you all act like it’s over, you should remember that the company’s supposed best and final offer is still valid for nearly another week. This is just a game of chicken right now.
There’s no incentive for a union to accept an entirely concessionary deal a week before a deadline, especially when it can always schedule another vote. And it makes complete sense for the company to assert that it’s not interested in further negotiations. To do otherwise would weaken its position.
Each side is playing its hand just like it should. I suppose we’ll get a better sense this week of who’s sincere and who’s posturing. But I’ll reserve judgment, since those who cast pejorative words now could easily end up looking like idiots themselves if both sides end up going back to the table.
Posted by Recess Supervisor on August 23, 2009 at 1435 hrs
Way to stand on principle, union goons. Now prepare to stand on the unemployment line.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1438 hrs
Congratulations, Stillwater. The unemployment rate in Payne County, Oklahoma, is 7.5%, I’m sure these jobs will be much appreciated.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1441 hrs
Wisconsin, unemployed like you mean it. Whose got the light switch covered?
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1522 hrs
RS- if they are playing that game, they are too stupid to realize that rules are different now.
I think that anyone who voted to reject the concessions should not be eligible for unemployment as I consider it a voluntary termination.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1530 hrs
Recess Supervisor,
http://www.jsonline.com/news/wisconsin/54335897.html
Mercury Marine is leaving, keep up that whistling.
Posted by Marcus Aurelius on August 23, 2009 at 1540 hrs
Okay, so just because a company in the middle of a negotiation says that it’s going to do something means it’s going to do it? Because companies at the bargaining table are always honest and say exactly what they mean?
Of course not. Management always lies at the bargaining table. So does labor, for that matter. Hell, even if they’re being 100% honest (which I doubt - who’s 100% honest in a negotiation?), the union still has six days to reconsider the offer.
This is over when it’s over, and it’s not over until the offer lapses. It’s not over just because the company says it is.
Posted by Recess Supervisor on August 23, 2009 at 1558 hrs
As I stated earlier “you can’t fix stupid”.
RS the game has changed, Mercury holds “all” of the cards, the union only has the jokers. Get a clue RS this union is doing to these workers the same as most unions have done of late, cost employees their jobs. The incentive to move was given by Doyle’s combined reporting, this vote just sealed the deal.Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1606 hrs
Like I stated earlier “you can’t fix stupid”.
RS Mercury holds “all” of the cards, the union only holds the Jokers, so what you’re going to see is what most other unions members have seen in this same circumstance, the loss of their jobs, Doyle provided the incentive for Mercury to leave, the unions vote just sealed the deal. Get a clue RS, the times have changed and most workers are realizing their unions are a detriment. not an asset.Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1612 hrs
owen
please…if the company had any interest in staying in Wisconsin, they would not have asked for a 7 year wage freeze! sure 2 or 3 to get things turned around…but 7 years,
funny that they aren’t doing the 7 year freeze to management isn’t it.they knew the union would vote this down and your ilk would blame the big bad nasty union.
you were played like a fiddle by a company that never had any inclination of staying.
yes you can blame the corporate conditions, but not the Union.
they were a patsie in this case!Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1630 hrs
By all means, if we’re here a week from now and the workers decide to pass, feel free to call them whatever you want. Frankly, I could give a crap about what the workers decide to do. It has absolutely no bearing on my life whatsoever. It’s their decision, and just like Brett Favre, they don’t owe anyone in that community squat. I’m just pointing out that the fat lady’s not singing yet.
Of course Mercury holds all the cards. The employer always holds all the cards, in theory. And in countless instances, we’ve seen companies posture and plead and talk about how terrible things were, only to see them agree to terms that they initially said there was no way they could accept. Why is that? Because everyone lies in a negotiation.
We also know that if Mercury wants to move regardless, that’s exactly what they’re going to do. They’re going to negotiate in bad faith, put a ridiculous offer on the table, and see what the workers do.
“Times are different?” No, a negotiation is a negotiation, whether in good times or bad times. Both sides have the same goals regardless of how the economy is doing. A union is looking to maximize compensation and working conditions, and management is looking to maximize profit for its owners and/or shareholders.
Oh, and “most workers” realize their union is a detriment? Evidence please. Support your claim.
Posted by Recess Supervisor on August 23, 2009 at 1632 hrs
It reminds me a few years ago when i was with IBC = wonder hostess cakes.
We had a contract proposal, we wanted a small raise the company said that there offer was the only offer, i told our union rep that we go high they go low and we compromise. he said no that the company offer was the only offer. we voted no but the other 2 districs voted yes.
we had no power and i believe with all my being our union was in the company pockets.
that is why our last contract was opened up for bankruptcy. they asked for 140 dollors concessions a week.
we voted no but the company wide vote was yes.
i dont know because the union counted the vote.
so i quit and got a good paying job that is non union.Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1636 hrs
We’ll see what the end of the week brings - but I can’t see anyone changing their vote - hence say goodbye to Mercury in Wisconsin.
Doyle is still laughing at anyone who wants to run for governor.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1701 hrs
OK everyone take a deep breath, there are five more days to work this out. Both sides are likely to come back to the table and work out a compromise.
If Mercury does move to the Oklahoma it will be only a matter time until those employees unionize. The Free Choice act will make it out of Congress then the savings the company thought it would gain will vanish. That plus the poor quality educational system that is systemic in the south will make Wisconsin look like a bed of roses.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1705 hrs
Yeah, Merc is bluffing, just like Pabst and Schlitz and numerous other now non-existant companies were bluffing. The only way a union can survive is to convince the employees that the company is screwing them at every turn, which in turn leads to poor attitude from said employees, making working conditions worse for everyone, but then that’s not the union’s concern, collecting dues is the union’s concern.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1711 hrs
Kay,
Mercury has had a facility in Stillwater for a long time now—they know the situation there and it doesn’t appear to phase them.
You will notice the Japanese auto manufacturers are NOT locating plants in state but down south, doesn’t seem to have hurt their quality ratings one bit.
Posted by Marcus Aurelius on August 23, 2009 at 1716 hrs
It’s time for a reality check….the days of high wage pay is over. Now the union has not only hurt themselves,but they are hurting an entire city.
Good for Oklahoma…bad for Fond du Lac.
So all the restaurants around MM, the gas stations and so on will also be hurt by the selfish decisions of union workers. Good luck finding a job and take off your union stickers when applying somewhere.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1717 hrs
Marcus Aurelius,
Yes the Japanese are location plants in the south. It is not because of the wages and lack of union, but it is a matter of incentives. It rather the number of concession the locals are will to sweeten the deals with such as free infrastructure and tax breaks.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1724 hrs
I agree with RS. I guarantee the union will have another vote. It happens all the time. I’ve seen these votes go 80/20 to 20/80 in three days…
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1729 hrs
Woo hoo! That’s a win for Oklahoma! (Sorry, I shouldn’t mock, but seriously, what the hell were they thinking? Oklahoma has been very pro-active about wooing the outdoor industries to the state. They’ve been working on gun makers in anti-gun states for a few years.)
Posted by Bitter on August 23, 2009 at 1806 hrs
If the so called free choice act gets passed it will only be a matter of time before the jobs in Oklahoma move to Mexico. The companies that add more value to the raw materials they consume also have free choice.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1833 hrs
so here is what happened at my company. they used the excuse of the economic downturn to say a zero percent raise this spring and then turn around and give management a 100% increase this summer after announcing record 1st quarter profits.
this is managment is trying to stampede the weak.
i heard of a book called “disaster capitalism”. this fits nicely.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1903 hrs
what i find absolutely HIlarious is kelly.
she is all about defending the rich guys one week ago in the string
http://www.bootsandsabers.com/index.php/weblog/permalink/fair_share1/
saying “stop the class warfare” because several of us were hating on the rich and now kelly is all about the beatdown of a couple thousands guys trying to find out what is the best deal that they can get with mercury marine.
mercury marine management knows that they are going to get a much better product out of wisconsin workers.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1910 hrs
give management a 100% increase this summer
really?
what company was that?
Posted by dad29 on August 23, 2009 at 1921 hrs
mercury marine management knows that they are going to get a much better product out of wisconsin workers.
Absolutely, positively FALSE.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1927 hrs
Kay has some old data. The WI educational system has slipped a bit and Oklahoma is hardly a bunch of hicks. For what its worth for those who could possibly move with their jobs - the weather in OK will be nicer than WI, the taxes are lower and the Okies have been weathering this downturn much better than the Badger State has.
Yes, where the auto makers (Toyota, Mercedes, et al) eventually built their plants had much to do with the incentives offered to them by the states, but they weren’t even looking in union states. All the right to work states have been the beneficiaries. So yeah, the union is most certainly a factor.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1939 hrs
vic - where exactly is all of this data that Mercury is rolling in the profits and trying to just screw the union to benefit management?
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 1940 hrs
Right, Kay. Our education system is so great. That’s why I have to explain how to figure sales tax an how to count back change to 17-20 year olds every time I go to a restaurant that’s had it’s registers go down. Or why so many young people have no idea which branch of Government controls the purse. Sometimes I think that the ones that do excel do so in spite of our system. No offense to Mr. Bullock.
Posted by Billiam on August 23, 2009 at 1951 hrs
Kay,
Tthe floor workers in the FDL Mercury shop are not going to be winning any academic contests in the near future. The only thing they excel at is patience in waiting for the clock (a line that begins probably ten minutes prior to shift end) and the 40 yard dash to their cars after their shift is done (at which point they become stock car race drivers par excellence).
In addition, you make a great point and one I agree with. It isn’t all union that is driving MM out of WI, after all, the sound of another business leaving the state is becoming like the tic-toc of the clocks on our walls. Our legislature seems to be setting up disincentive after disincentive for companies to do business in WI.
Mercury will do just fine in OK.
Posted by Marcus Aurelius on August 23, 2009 at 1955 hrs
i am not suggesting that mercury is rolling in profits. i am just saying that they are taking maximum advantage of a situation where they can stampede their workers into a 7 yr contract at 30% lower wages and yous guys are hating on the union to refuse a bad offer and get better contract terms. like a 1 yr 30% then when the economy recovers they get to enjoy the benefits of a stronger mercury.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2014 hrs
Neomom and Billam,
I have personal knowledge of more than few adults well into middle age who care incapable of doing the very tasks you are describing. Any educational system, even one as good as the one here in Wisconsin, and it is a very good one, will have individuals graduates who are not the best examples of its potenial.
The desire to learn and succeed is a personal one and some systems are better than others in instilling this drive. The degree to which systems succeed may well be cultural. For example please see the following:
http://www.act.org/news/data/08/states.html
The majority of the lower scoring states are from the south.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2031 hrs
I am not trusting any descriptions of the contract I am seeing of late. One general feature I’ve seen a number of characterizations at odds is the pay bump increase.
I’ve seen people claim the offer halts all pay increases for the entire seven years, I’ve seen claims the contract halts them for a couple of years.
Vic, one thing I’ve seen is those currently working at Merc do not get pay cuts but the contract has pay cuts for new hires and those called back from layoffs and the cut you describe is pretty consistent with what I’ve been reading elsewhere.
Now, I agree, it is not the Union all to blame for this situation, read my previous note. However, that Union pushes the Dems real hard and look what that voting got them.
Posted by Marcus Aurelius on August 23, 2009 at 2038 hrs
wow kay. that is one tough statistic to make any conclusion from because the percentage of graduates tested is all over the place.
although i do believe that mississippi is last. it is last in everything. oh except avg weight then it is first.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2043 hrs
I’m tired of all this talk about management screwing over the workers while they keep getting big raises. The company I work for froze all salaries were frozen this spring until further notice but the hourly employees received their raises just 2 months late. Of course the unions will get their increases on schedule.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2044 hrs
kay -
First that table really doesn’t tell anybody anything. The scores vary a bit, but the percent of students taking the ACT varies tremendously. But seeing that the percentages of students in OK and WI were fairly close, the test scores really weren’t that far off. Not that your average line worker takes the ACT and is a college graduate….
I moved south a while ago. My kids were in parochial school in WI, they are in parochial school now. I’d encourage those that can move with the company to go to OK. I’ll never live north of where I am now again.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2045 hrs
Well them dumb southerners are getting our jobs, who are the dumb ones?
Posted by Marcus Aurelius on August 23, 2009 at 2047 hrs
neomom,
i move north quite awhile ago. I love it here. I would never move south.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2058 hrs
At the end of the day, all this stuff can be made in China for half the price and it won’t be subject to supporting Obama-care, Wisconsin teacher lifetime pensions and cap and trade rules.
About 10-15 years ago we made the decision to let 2 billion Chinese and Indian people into our labor market. It is a zero sum game that only ends with complete annihilation of our labor market in the next 10-years or so. Oklahoma will “compete” here for a couple years before Merc goes under completely and we are buying foreign boat engines from Merc’s competitors overseas.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2100 hrs
Steve,
Mercury has to a certain extent joined in. They have an assembly plant in China for smaller outboard engines. Mercury competes quite well vs. other boat/marine engine manufacturers, Merc will be around for more than just a few years.
Posted by Marcus Aurelius on August 23, 2009 at 2107 hrs
vic: What company gave their company 100% increases after getting their union to concede to a wage decrease? Answer dad29’s question of forever be branded as a total BS’r. I am betting you don’t have an answer.
Anyone: Name one industry that unions have saved in the United States!
Textiles, Steel, Auto? None. They have driven them all out of production in the US.
Next stop. Teachers, Gov. workers. None too soon.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2146 hrs
Would you want unhappy union workers making things for your company. The Union is constantly telling the workers that they are being cheated by the company. After time many of workers believe it , and do half ass work to get even.
PS How much do the Union bosses get paid ?Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2203 hrs
OK, I guess there’s still the chance they resolve this by Aug 29, but right now it doesn’t look good. If Mercury does move these jobs to OK, I agree with Rick. These people effectively quit. They should be denied unemployment benefits. Its too bad for the hard working non-union people that depend on this plant - they’ll get to join the steady stream of people leaving this state and its archaic blue collar mentality.
And Kay, the Japanese automakers locating in the south has EVERYTHING to do with the lack of unions. All states offer incentives, and richer states are probably able to offer better ones than poorer southern states, yet the new plants always go to the south.
Posted by .(JavaScript must be enabled to view this email address) on August 23, 2009 at 2229 hrs
I agree with RS (it’s ok Sup, we’ve been there before). This dance will get played out over the rest of the week. Maybe they stay, maybe they go, but it’s too early for The Fat Lady.
In response to Vic, the assertion that management is getting huge increases is utter BS. But not an unusual comment from Union-types. Fact is, any management in a manufacturing organization right now is “sharing the pain” in a big way. No raises, no promotions, 20% reduction in pay….if you even get to keep your job. And management doesn’t get to “vote” on it.
Manufacturing jobs will continue to flow to China and India. It can’t be stopped. They will only return when a couple things happen. First, the cost of manufacturing in India or China has to be on a competitive par with the US. This has happened with other manufacturers (Japanese and South Korean auto manufacturers, among others). Second, US tax and regulatory policy has to be manufacturer-friendly. I don’t see that happening with this administration (Cap & Trade, Socialized Healthcare, EFCA).
Merc may head to OK, but only for a relatively short time. If Unionized, it will be an even shorter time.
Posted by Steve on August 24, 2009 at 0315 hrs
The State should step in and match Oklahoma deal.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 0638 hrs
saying “stop the class warfare” because several of us were hating on the rich and now kelly is all about the beatdown of a couple thousands guys trying to find out what is the best deal that they can get with mercury marine. -Vic
I’m glad you admit that you are “hating on the rich”.
They beat themselves down, by passing on a job that would give them money and stop MM from closing its doors and killing a city.
If they refuse to accept the offer they are only hurting themselves and the city they live in.Obama taxed the “rich”, the rich now have less money to buy boats, boats that use MM motors, no one buying means less work, less work means less money, less money means you have to cut costs.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 0813 hrs
Obama taxed the “rich”, the rich now have less money to buy boats, boats that use MM motors, no one buying means less work, less work means less money, less money means you have to cut costs.
Just wanted to add something - it’s not just that less boats mean less MM motors - the parent company Brunswick builds more boats than anyone else as well. Think GM here - Bayliner, Boston Whaler, Sea Ray, Maxum, Lund, Triton, Crestliner and more are all sibling companies to Mercury. It’s not just that it’s tough for their Mercury Marine division to be profitable, all of the marine products struggling so they all need to cut expenses as much as possible to survive.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 0910 hrs
If there’s any industry that’s in a depression it’s the boating industry.
Genmar which makes Carver, Four Winns, Larson and other lines went into Chapter 11 earlier this year.
Brunswick has discontinued the Maxum line altogether
GE capital and other financing companies have pulled dealer floor plans meaning dealers can’t carry new inventory and will sell from websites
Every, every boat manufacturer has downsized dramatically. Not 10%, not 25% but many cases 75% fewer employees due to slow / non existent sales. I’ve heard of one manufacturer who hasn’t built a single boat this year when they were building dozens a month in previous times.
Boat shows have disappeared or when still around show 75% pre-owned and 25% new when just two years ago 90% were new boatsAnyone who thinks that Merc is rolling in the money and is bluffing or somehow short changing their employees is either smoking something or a democrat.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1048 hrs
I didn’t realize the MM was affiliated with all those other companies.
Trickle down recession.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1059 hrs
yeah - those greedy S.O.B.‘s just want to give all the money to the office folks - screwing the guys on the line. Oh wait, what’s that:
“The company’s salaried employees have accepted wage freezes and furloughs, Schwabero said,”
http://www.jsonline.com/news/wisconsin/54321942.html
Gee - I guess it is not always some grand Marxionian struggle between management and labor. Sometimes a company is just hurting and needs everyone to share the pain.
Also, given the huge economic impact this decision has on the entire fox valley, do the Union members have a duty to think about all of the other jobs that will be affected? Solidarity and all that.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1101 hrs
Well, if nothing else is clear, the fact that the Liberal’s plan to weaken America’s economy is working beautifully. They have been tirelessly working to this end, and it’s finally coming to fruition.
The few have effectively determined to future for the majority.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1139 hrs
If one can believe Plunkett’s Sports Industry Almanac 2009, here’s how Brunswick (Mercury’s parent) is faring these days:
2003: $135MM profit on $4.1B in sales
2004: $270MM profit on $5.1B in sales
2005: $385MM profit on $5.6B in sales
2006: $134MM profit on $5.7B in sales
2007: $111MM profit on $5.7B in salesBrunswick’s margins have narrowed a bit but this is hardly the picture of a company that’s in the throes of corporate death.
Brunswick recorded over a billion dollars of profit in the last five fiscal years for which complete numbers are available. I don’t know for certain, but I would suspect it’s numbers like these that are leading some to believe Mercury’s offer is a bad faith effort by Brunswick to do what it wanted to do all along - move the jobs to Oklahoma.
Posted by Recess Supervisor on August 24, 2009 at 1141 hrs
Odd how the union pigs are the first to belly up to the trough demanding their “fair share” of the profits in times of plenty, but never want to take less when the profits slip.
I’d be elated do any one of those jobs for half of what the union workers are getting.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1147 hrs
hey, RS. Did you ever think that the new combined reporting might have something to do with it? That just started in 2009. You failed to report 2008. That is when our economy started to go in the tank. It’s not about the past, but what is happening to the company right now. Boat sales are in the tank.
The company offered to let the jobs stay and the union thumbed their noses at them.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1150 hrs
Paul, I simply reported the most recent data that was available in the 2009 almanac. If you have access to audited numbers from 2008, feel free to share them with us.
I understand companies have to make decisions going forward. I also understand that a billion dollars in profit is a billion dollars in profit.
Like I’ve said before, I could give a flip about what happens. I get why both sides are taking the positions they are. I don’t think one side is more right or less right. I don’t care. I’m just trying to put some facts on the table for people to consider - you know, the things that rational people use to form opinions instead of uninformed stereotypes.
Posted by Recess Supervisor on August 24, 2009 at 1207 hrs
RS - they posted a $163.7 million loss in the quarter ending July 30, driven by a 77% decrease in sales in its boat division and a 33% decrease in its billiards and bowling division(s). I think the issue here is the drop in sales. I wound not even consider buying a new outboard motor right now. Last few road trips I took, I passed the time counting the boats and motors for sale on the side of the road.
http://www.bizjournals.com/milwaukee/stories/2009/07/27/daily66.htmlPosted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1252 hrs
RS,
Interesting because while sales are indeed growing profit isn’t necessarily following. I wonder why the profit side took that huge leap in ‘04 and ‘05? It appears that is when they released the Verado line of engines, but then again that is Brunswick corporate wide which includes more than boats & marine engines.
A few things. I can not recall exact years but in the early part of the range you put up, MM moved its assembly lines for small outboards to China—not the entire process but just assembly (parts production still stateside). Another thing in those years is the OMC/Bombardier/GenMar shakeups.
One thing that is clear, once the ‘04 & ‘05 bumps are past profit is reducing despite increasing levels of sales.
Posted by Marcus Aurelius on August 24, 2009 at 1258 hrs
RS - it’s perfectly understandable why you don’t list 2008 numbers. But it is still not at all accurate to characterize Brunswick as a healthy company based on financial numbers there were on their way down before the economy really got bad. One has to wonder to what extent the profits they had came from their non-marine companies as well.
But let’s think about where the numbers go following 2007. You had gas hit it’s peak in mid to late 2008. In addition to increasing production costs and lowering margins, a spike that high murders boat sales. The bottom fell out of the economy, further hurting both sales and profitability as big ticket, optional purchases all but disappear and forcing down prices on the sales they do have. I think it’s a fairly safe bet sales for ‘08 won’t end up being above $4 billion and profit will probably be very ugly - if they only lost a couple hundred million, they’re lucky. If they aren’t cutting everything they can, they’re in trouble because the rebound for that industry is at least 3-5 years away.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1304 hrs
Also,
I don’t see the word consolidate anywhere in this thread.
Posted by Marcus Aurelius on August 24, 2009 at 1313 hrs
Brunswick like all boat manufacturers is struggling and cutting costs all over the place to survive.
http://www.soundingsonline.com/news/todays-top-stories/238902-brunswick-discontinues-maxum-line
Aug 11, 2009 - Brunswick stops production of all Maxum boats and dropped all dealers.
May 2008 - Brunswick ceased prodcution of: Sea Pro, Sea Boss, Palmetto and Lagua boat lines.
Anyone who follows boating knows that this economy is even more difficult for boat manufacturers than back when the government imposed a 10% “luxury tax” on boat purchases.
A friend of mine purchased a boat earlier this year from a manufacturer he’d been talking to for a couple of years. Last summer they wouldn’t budge on the boat price. Late spring this year he got a call offering a substantial discount, 3 years of summer slip rental, 3 years of winter storage and 3 years of fuel reimbursement.
The offer came after the manufacturer hadn’t built a single boat in nearly six months time. They went from 150 employees last summer to less than 50 now…. simply trying to hold on to a base core of employees. That after the firm had been in business for 50+ years.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1535 hrs
-
Brunswick stock just one month ago was down 90% from 2004 timeframe. That type of drop isn’t reflecting a strong company. Anyone who trys to spin that the company is doing well is either a liar or stupid.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1539 hrs
MB,
Well put. Their current financials are a mess, but even the 2007 numbers that RS showed as signs of a healthy firm, were fairly awful. A 2% profit margin doesn’t leave much of a return for your investors, nor does it leave any cushion for a downturn.
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1858 hrs
2008 Brunswick Benefits Summary for WI Salaried Employees
http://wwwarchive.mercurymarine.com/benefits2Jobs Salary at Brunswick Corporation (mercury Marine Division
http://www.salarylist.com/all-real-jobs-salary-at-brunswick-corporation-(mercury-marine-division).htmCan’t find the CEO and administrator pay…
The real story behind Mercury Marine’s labor collapse
By Steve Jagler
” . . . The first thing to understand is the history that brought the Mercury Fond du Lac contract dispute to this point.
The company signed a contract extension through 2012 for the workers in Fond du Lac only last year.
“Now, they turn around and say, ‘We need a complete rewrite, from cover to cover, of the contract THEY negotiated. It’s union busting,” said Mike King of the IAMAW. “When it’s told to you across the table by a union-busting consultant (hired by the company), it really leaves a bad taste in your mouth.”In recent years, Mercury Marine had laid off about 600 people from the Fond du Lac plant and shifted production to China. The laid off employees could not participate in Sunday’s contract vote.
The layoffs left the Fond du Lac plant with a senior-laden workforce. Most of the employees who still have jobs there have 25 to 30 years of experience at the plant. For many of them, retirement is on the near horizon.
Put yourself in their shoes. You are very near retirement. You are making a fine living wage. You have negotiated health care and pension benefits. The company is proposing a new contract that will slash your pay and eliminate most of your benefits, including severance pay for outgoing workers. The contract will cut benefits for retirees and will cut wages for new hires.
Even if the contract is rejected by the union, the company will need two to three years to move all of its production out of Fond du Lac to Oklahoma. If you can ride that time out, you’ll walk away with the severance pay from the current contract. And then you can retire.
Or, you could take the figurative kick in the teeth - a pay cut and loss of benefits, including severance - and retire with less.
Union officials say the company’s latest proposal is a “suicide offer.” . . . “
Posted by .(JavaScript must be enabled to view this email address) on August 24, 2009 at 1914 hrs
Nice theme to make the concept more interesting and meaningful.
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Posted by .(JavaScript must be enabled to view this email address) on August 25, 2009 at 0255 hrs
No announcements of exec pay reductions. Stock is up.
BC Top Compensated Officers (From Business week dot com)
Mr. Dustan E. McCoy, Chairman and Chief Executive Officer
Age: 59, Total Annual Compensation: $888.6KMr. Peter B. Hamilton Chief Financial Officer, Senior Vice Pres
Age: 62, Total Annual Compensation: $144.0KMr. Andrew E. Graves, Vice President, Pres. of US Marine & O…
Age: 50, Total Annual Compensation: $371.7KMr. John E. Stransky, Vice President, President of Life Fitness ...
Age: 57, Total Annual Compensation: $309.5KMr. B. Russell Lockridge, Chief Hum. Res. Off. and Vice Presid
Age: 59, Total Annual Compensation: $352.1KPosted by .(JavaScript must be enabled to view this email address) on August 25, 2009 at 0902 hrs
Owen,
You write: “they voted themselves out of a job, but they have voted to piss away the thousands of jobs that rely on that plant too.” However, below are two quotes from you stating contracts are to be observed. Perhaps you are unaware of the contract extension through 2012 for the workers in Fond du Lac only last year. It’s described in a post a little above this.“Yes, there are ridiculous compensation packages out there, but inserting politicians into the mix will only make it more absurd. Leave compensation between the owners and the employees.”
Saturday, March 21, 2009. Posted by Owen at 1724 hrs.“The people who are getting these bonuses are getting them because of contracts negotiated as part of their employment. They earned the bonuses on the terms of their contracts and AIG is contractually obligated to pay them their money. Let’s imagine, for example, that the Milwaukee Public Schools decided to withhold 1/3 of the teachers’ salaries because 1/3 of them failed at their jobs. Would that be OK? Or would we be obligated to stick with the contract? Yeah, I thought so.”
Tuesday, March 17, 2009 Posted by Owen at 0000 hrsPosted by .(JavaScript must be enabled to view this email address) on August 25, 2009 at 0903 hrs
JPenterman,
Wow, way to dig out old quotes…
Yes, I support the honoring of contracts. In this case, the company has seen a 50% decline in sales. They are permitted by that very contract to close the plant and consolidate the jobs in another city. The company went back to the workers and explained that the economic conditions on which that contract was based no longer make the contract viable in the long term interests of the company. The employees had the choice to reopen the contract and accept some concessions or refuse - in which case, as I said, the company can eliminate their jobs fully within the terms of the contract.
Nobody here is saying that the contract should be broken or that either side is trying to do so. The company has committed to honor the terms of the contract in terms of compensation, pension, etc. right up until the point that they lay off everyone.
Posted by Owen on August 25, 2009 at 0934 hrs
Wow, that’s pretty low exec pay for a company of that size. A CFO/Senior VP at just $144k? Ouch.
Posted by .(JavaScript must be enabled to view this email address) on August 25, 2009 at 1311 hrs
Thanks, Owen, for the clarification.
Wendy: re: $144k per year exec pay: I am to lazy/busy to hunt up his stock options, which I believe are taxed far less. Yes, for the company commitments of a CEO, $144k seems small. Better money could be had as a doctor handling skin ailments.
Posted by .(JavaScript must be enabled to view this email address) on August 25, 2009 at 2020 hrs
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