Posted on 09/19/2009 4:58:36 PM PDT by Diana in Wisconsin
As union workers at Mercury Marine fought over contract concessions meant to save hundreds of jobs in Wisconsin, the company's midlevel managers filed a lawsuit over unpaid bonuses.
The class-action lawsuit, filed last month in federal court, argues that the Fond du Lac-based outboard-engine maker failed to pay $7 million in bonuses to roughly 100 managers. According to the suit, senior Mercury executives instructed lower level managers in April 2008 to implement a cost-savings program and assured managers that they would receive 10% of whatever savings they managed to achieve as an incentive.
The suit names Brunswick Corp., Mercury's parent company, as defendant. Brunswick cancelled bonuses despite repeated assurances that the managers were entitled to a "self-funded bonus program," said Gregory Gill Sr., the attorney representing the managers.
Each of the approximately 100 people covered in the suit "is alleged to be entitled to an amount greater than $75,000," the suit says. In addition to the $7 million in bonuses, the suit seeks additional damages that could exceed $3.5 million, Gill said.
The initial suit was filed Aug. 21 just as the International Association of Machinists and Aerospace Workers struggled over a company proposal to freeze wages, increase health care costs and cut pay by 30% for new hires and employees called back from layoff. The labor dispute, which split the union's membership, dragged out into a third vote that the union approved this month.
To keep its operations in Wisconsin, Mercury also will receive aid and incentives from local government and the state. The company scrapped plans to move operations to a non-union plant in Oklahoma.
More than two-thirds of those eligible under the class-action suit are residents of Wisconsin, according to an affidavit filed last week.
Representatives from Mercury Marine did not return phone calls Friday.
Ping!
100 managers??
Doesn’t that sounds a lot.
Dumb company should have moved to OK. I do not like their engines.
I heard a radio report about this earlier today. What are these idiots thinking?! Their jobs were saved.
These are managers suing, not union members.
“What are these idiots thinking?! Their jobs were saved.”
No kidding! I’d be kissing the ground and thanking God for my many blessings, versus suing for more money.
Have you had a problem with their engines? We have a Mercruiser 5.0 and really like it.
Most people I know with outboards like Yamaha’s. I know someone that had Honda’s too. The old Johnsons were good in their day.
What’s the difference if it’s going to harm the company that BEAT the Unionistas and saved the managers’ jobs?
If there was a contract signed that they would get bonuses, that’s one thing but according to this article, Brunswick just ‘promised’ them bonuses based upon a ‘self-funded bonus program’...whateverthehell that is, LOL!
We shall see. That company has taken so many hits, it’s doomed anyway. All manufacturing has been sucked dry by the unions in our state, it’s amazing we can produce a No. 2 pencil in this country without them costing $50.00 each, let alone something really needed...like an outboard motor...for boats that no one is buying because manufacturing is so screwed up in great part due to the unions.
It never ends! *Rolleyes*
Frantzie has a problem with EVERYTHING no matter WHAT the topic. ;)
Management is not unionized. Mercury Marine decided to stay in WI after negotiating with the union employees who made major consessions to keep their jobs, major pay and benefit cuts. Also, the county created a sales tax, I think it’s .01%, to help bolster MM. Now these managers are pulling this stunt.
Sickening.
We’re just waiting for the old dogs and the Grandparents to pass on; then we’re moving to a SANE state for the remainder of our lives. ;)
“$7 million in bonuses to roughly 100 managers”
Ack! Sorry to go on about this but SHEESH!
The first year they made a 7% profit, and the employees at all levels got a nice incentive payout. The following year they made 12% profit. Employees at the bottom were saying wait don't replace Joe who is retiring we can pick up his job.
The bank was happy, and the employees were ecstatic. Top level mgrs were getting $40,000 plus incentives. entry level employees were getting $4 - 5,000.
Of the incentive money 40% was paid out in cash, %40 went into a 5 year pay out, and the balance into equity in the company.
So, is that what they’re talking about? This is money they they earned in the PAST that the company is now refusing to pay them?
If the deal was that they got a percentage of the money they saved, the company needs to pay up. If they didn’t get it in writing, they’ll have a hard time collecting.
I have no problem with the managers trying to get MM to live up to their agreement. Without this type of basic contract law, the United States no longer exists.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.