The Industrial Age collapses: Part I

Mercury Marine, probably the world's largest (certainly the best) maker of outboard motors, has a factory that is literally a mile long in my hometown of Fond du Lac, Wisconsin.

But because of falling sales, Mercury has to cut its workforce wages, down from a liveable (house, spouse, kids) $20 an hour down to a meager $12 an hour (good luck with the house, spouse and kids).

With 2,000 workers in Fond du Lac (FDL), pop 42,000, it is the largest employer by far, one of two great industrial giants from the old manufacturing age. Every worker creates 4 jobs, so at least 8,000 people are dependent on it.

Unlike auto companies, which just close plants, Mercury Marine gives its union and workers a choice: 1) Take $12 an hour;  or  2) Keep making $20 an hour for 2-3 years and then lose your job as we move to Stillwater, Oklahoma. 

The workers in the union vote.  They vote to lose their jobs!  The town is incredulous. Unbelievable. Thousands of other jobs will be lost.  The county executive Alan Buechtel says the town could become another Detroit, hollow, vacant buildings, unemployment, dismal.   People are enraged. But the story continues. Stay tuned.

Comments

[Account Deleted]

That’s really a bad news for the workers, the reason for this big change is that there are lot of other major companies coming up with very good and top quality outboards which are available at a competitive price.

[Stephen Downes]

Ah - looks like I was right. This is _after_ they agree to the concessions...
http://www.jsonline.com/business/58505672.html

[Stephen Downes]

If I were voting in that vote... I would be thinking, I'm going to be laid off by this company in 2-3 years no matter what they're paying me.

Companies that want to retain their work force don't cut wages 40 percent. What they're doing is lowering their current costs & making it easier to lay them off shortly.

I'd vote 'no' as well.

[Kevin Czmowski]

According to the Journal Sentinel, the union eventually agreed to the giveback to save their jobs (http://www.jsonline.com/search/?searchType=site&keywords=mercury+marine -- check out the articles from September 8th, 11th and 12th.)

KCz