Mercury Marine has shut down all manufacturing operations this week in its headquarters in Fond du Lac, Wisconsin. According to a story in the Fond du Lac Reporter, the shutdown was an effort to "balance supply of products with demand".

The paper said that it comes after 48 employees volunteered to take temporary layoffs starting last week.

Mercury spokesperson Steve Fleming told the paper that the shutdown was a necessary economic move. "We constantly monitor supply and demand and adjust our work force accordingly," he said.

Mercury Marine employs about 3,300 workers at its Fond du Lac facilities. Fleming told the paper that he would not rule out additional layoffs or shutdowns this year. "We anticipate 2008 to be a challenging year for the US boating industry. As such, we will continue to take steps to react to the situation throughout the year," he said.

Mark Zillges, president of Mercury's employee union, said workers were willing to stop work this week in order to prevent permanent layoffs. Zillges said each year the company is allowed four such shutdowns per contract agreements. The union's four-year contract with Mercury is set to expire in June, and negotiations are under way.

Both Fleming and Zillges told the paper that contract discussions are moving forward. "We hope we can come to terms and survive these hard times," Zillges said.

The last time Mercury laid off salaried employees was in November 2006, when about 125 workers lost their jobs.

Fleming told the paper that the 48 workers who volunteered for temporary layoffs on February 18 will return to work in June.

(28 February 2008)