marine industry professionals
Mercury union angry about compensation decision
"It doesn't sit good with anybody here," Mark Zillges, president of the International Association of Machinists and Aerospace Workers Local 1947, told Gannett Wisconsin Media.
Zillges said news of the compensation, which is tied to performance goals for 2009, is insulting to hourly workers who took major concessions last year to keep Mercury Marine in Fond du Lac.
Mercury Marine spokesman Steve Fleming said the incentives from the city, county, state, as well as the changes that came from concessions during contract negotiations, "do not fund the (variable) compensation and are not in any way related to it."
Fleming said variable compensation is also referred to as "at-risk pay" because it's not always issued. In 2009, he said, Brunswick did not pay any portion of variable compensation.
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Steve , you are correct in your analysis, and comment. I'm not upset either way. The company management does manipulate the basis for which they pay out. The Stillwater employees found that out a year ago.
When goals are met all should be rewarded for meeting the objectives. Times are bad, nobody should get anything including management. When management makes bad decisions, they should be removed, not allowed to continue to cover up mistakes and make more bad decisions.
Thanks for your comments, you obviously understanding what's happening.
You should not be too upset about Merc Marine salaried works getting variable pay. I’m a salaried worker who has worked at two high tech Fortune 500 companies (over 15 years) that have variable pay structures and it has not benefitted me or my salaried colleagues. Variable pay has become a very popular way to control (decrease) the overall costs associated with exempt employees. Traditionally exempt salary costs have been hard to control. With variable pay they control cost by constantly manipulating the formula that the variable pay component is based on. It is totally unregulated. He who controls the formula controls the pay out. HR will sell it to the employees like it is the greatest thing but I can tell you that it doesn’t typically work to the employee’s advantage. Check the studies of companies that have gone to this type of pay structure. There is a reason it’s becoming popular and it’s not to benefit salaried employees.
Rather than be upset you should be educating all workers about what this variable pay is really about. Unite and fight the corporatocracy.
Dear FG:
You quoted the statement correctly, however you missed the point totally. Unless Merc management starts playing fair and dealing the cards on top of the table, things WILL change in the future. Unfortunately, the union will deal those cards out and the dealers and customers will have to pay the price.
No, I am not a union member but view the future differently than you do. I see a union that will strike in the future, and with the Stillwater plant closed, they will have the management right where they want them. The City of FDL will have raised taxes, and the union will have control. You can bet the wages will rise and the competitiveness will suffer.
Management does sign agreements with the union, and they get the benefits of a contract. The salaried people do not get any contracts, but it takes both entities to do the business of the company!
Management will certainly be gone by the time this comes to a vote, unless it happens this year. No upper management has stayed here when things have gone this bad. Stock prices are a reflection of business, but not discounted because of strikes.
Gman
Are you saying the union learned something? Or perhaps made a mistake? If so, would admitting it be a first?
How much more division can be hand than that of the union -we, and Mercury - they?
The union workers are very lucky to have a negotiated job, with a pay rate set prior to this economy, and benefits far superior to many, especially those who lost their jobs (and homes, and savings). Get over yourselves, do the job you said you would do at the pay rate you agreed to.
"Incentives are paid out for performance and meeting goals, including profits etc. It takes a TEAM to make this happen. Salaried personnel can project and process business, but manufacturing produces the end results of the purchasing, and sales efforts. It seems unfair that one part of the equation gets a bonus, while the other part gets nothing."
Your logic is flawed because union members are not a part of the company TEAM, they are a member of their union TEAM.
Each union member gets exactly what they CONTRACTED for....nothing more and nothing less.
You see Mr. Union Man, you are not an employee of Mercury Marine. You are contracted labor.....nothing more and nothing less.
You work for and your allegiance is to the International Association of Machinists and Aerospace Workers Local 1947....nothing more and nothing less.
Incentives are paid out for performance and meeting goals, including profits etc. It takes a TEAM to make this happen. Salaried personnel can project and process business, but manufacturing produces the end results of the purchasing, and sales efforts. It seems unfair that one part of the equation gets a bonus, while the other part gets nothing.
Yes, the union shop gets a contract where the salaried people do not. It is employment at risk, but it takes everyone to get the results of the goals set forth.
This action by Mercury management only creates more division between management and the union. Unless Management is willing to make it fair to "all" workers, this will be a sticking point in negotiations in the future. The union will hold the cards then, and prices will certainly make the company less competitive. The union is going to be a difficult challenge to say the least in the future. Why create the problems now?
People in Stillwater know first hand those promises about "Bonuses" and not getting paid. I hope things will get settled and everyone get their fair share of the bonus for meeting projected goals.
"variable compensation" - a sum of pay that is similar to profit sharing,"
And how much profit did they produce last year??
Try making a marine manifold that last more than a few years and
you might deserve a bonus.....
Unions negotiate their deal and usually vote on it's acceptance only to whine when they find out someone else has what appears to be a better deal.
Why don't you work a little harder than is required of an union employee and try to get a salaried job if you like their deal so much better. Oh I forgot, that would be against union rules.
American Unions have been the best thing to ever happen to Japan, Korea, China, India, Mexico, etc.