Mercury Marine sued over unpaid bonuses

GREEN BAY - About 100 Mercury Marine employees are suing the parent company, Brunswick, claiming they weren't paid bonuses promised as part of cost-cutting measures, according to a lawsuit filed in federal court.

The lawsuit was originally filed in Fond du Lac County Circuit Court, but documents were filed this week, seeking to have the suit moved to the federal court branch in Green Bay.

Henry Hegel, who address is listed in North Carolina, and 106 other managers, are seeking $7 million in bonuses, plus 50% in punitive damages, for a total of $10.5 million.

According to the lawsuit:

In April, 2008, top Mercury officials called a meeting of management employees. A cost-reduction plan was laid out to the managers. As an incentive, the managers were promised that 10% of whatever savings were achieved would be paid to those managers as a bonus.

Those efforts resulted in about $78 million in cost savings. However, in December, the company decided not to pay the bonuses, the suit claims.

An affidavit filed in federal court says about 70% of the managers involved live in Wisconsin.

Thursday afternoon, Mercury Marine released a written statement. It read: “It is the Company's policy to refrain from commenting on pending litigation. However, we can confirm that, due to very weak market conditions, no bonuses were paid by Brunswick Corporation, including Mercury Marine, in 2009 for the Company's 2008 business performance.”

The attorney for the managers says the bonuses were promised on the savings achieved, not the company's profit.

"The plan was self-funded," said Greg Gill, Sr. "Independent of how Brunswick performs and independent of how Mercury Marine performs if you meet this stated criteria you will unequivocally receive the bonus."

No court dates have been scheduled.