Catherwood LibraryILR School

Unionized employees at Mercury Marine's engine plant in Fond du Lac, Wisconsin have agreed to a sweeping set of concessions, after an initial flat-out refusal to accept the proposals. The concessions include increased health care costs, some pay cuts, and a seven-year freeze on wages. Faced with Mercury Marine's threat to move all operations to Oklahoma, employees at Fond du Lac accepted the concessions in a second vote. Now, over $50 million dollars in loans and aid have been offered to Mercury Marine by the county, state, and federal governments as an incentive to continue and expand operations in Wisconsin. County sales taxes will be raised 0.5%, $3 million will come in grant money, and $50 million in low-interest loans has been offered by the county. Mercury can earn a $1,000 credit for bringing in new jobs, but faces a $500 penalty for every job lost during the 12-year agreement period with the county.