New Era Closing

[LPL]

Just heard that New Era will be closing at the end of May or first of June. As of right now this is just what I have heard from a good source, can anyone confirm?

[lowdown]

Originally Posted by LPL

Just heard that New Era will be closing at the end of May or first of June. As of right now this is just what I have heard from a good source, can anyone confirm?

[H-D Rider]

It's on the Demopolis Times website. Did anyone really expect them to keep this one open and not the one in New York that is close to company headquarters.

[Kagan]

That will effect families in five counties. May God bless the workers.

[dave]

Press release:

New Era Cap Announce Agreement with CWA to Keep Derby, NY Facility Open
Company has been consolidating its U.S. manufacturing operations

BUFFALO, New York, (January 27, 2010) - The New Era Cap Company today announced a tentative agreement with the Communications Workers of America (CWA) to retain New Era’s Derby, NY plant as the company’s sole U.S. manufacturing facility. A final agreement is contingent on the Derby employees’ ratification of a new contract, which represents operational efficiencies and cost savings. If the agreement is ratified, New Era said it will close its plant in Demopolis, Alabama sometime in the second quarter of this year. Today’s announcement follows New Era’s decision last November to consolidate its domestic manufacturing operations in the wake of significantly reduced consumer demand for its U.S-made products. The company has previously announced the closure of its Jackson, Alabama plant.
“This was an incredibly difficult decision to make,” said Christopher Koch, CEO of New Era. “Both our Demopolis and Derby plants are highly efficient and have made enormous contributions to New Era’s success over the years. In the end, our decision to keep Derby open was based largely on the need to retain our most senior and experienced unionized employees.”
The company also said that selecting Derby would result in less disruption to cap production operations than the Demopolis plant which would require significant renovation if it was to serve as the company’s sole U.S. production facility.
The tentative agreement came after weeks of discussions between the CWA and New Era, the company said. Employees at both plants are represented by the CWA. New Era also held meetings with local and state economic development officials in Alabama and New York.
“Both Alabama and New York offered generous economic incentives for each plant location and we factored these into our final decision.” said Koch. “We sincerely appreciate their efforts.”

The Derby ratification vote is scheduled for February 2
. There are currently 351 employees in the Demopolis facility and 330 employees in the Derby facility.

[Ruthie]

Originally Posted by dave

Press release:

This is sad news not only for the employees but the Community - let's show them our support as much as possible...my heart goes out to each and every family.

[mmcd3182]

Sorry to hear this. How high did new era rank as being an employer for the area? 300-400 jobs for Demopolis is a really hard hit.

If you've got any kids getting ready to graduate highschool -- point them in the direction of trade school or a 2-year community college degree -- we're going to be needing a lot of laborers for all of the work being done to repair / re-arrange infrastructure. Most four year degrees aren't going to help very much right now in most areas, and I don't see it getting much better. However, with a trade or a degree in nursing or teaching they would be in a good place for the future years.

[duddlebug]

My thoughts and prayers go out to the friends and families of the ones affected by this sad news! Demopolis and the surrounding areas are going to take a BIG hit from this!!

[Kagan]

I want to offer encouragement to the Demopolis New Era employees. Hit the ground running...today. Find something to do immediately. Take this as the opportunity to pursue that lifelong dream. Step into the next phase of life with expectations.

[Eagle101]

Soon you will read where New Era caps will be made in China, Mexico or some other overseas location. One of the reasons some manufacturing plants move to the south is for the tax breaks and cheap labor with non-union workers. Many will disagree with me but I believe the process started to close the Alabama plants was when they voted to go union. I have friends at New Era and I know they will be hurting because there are few jobs in the area. Also due to the lack of spending power of the former New Era workers some local businesses will suffer income losses and may have to downsize their work force. This also puts 350 people on the state unemployment rolls.

[blueheeler]

Originally Posted by Eagle101

Soon you will read where New Era caps will be made in China, Mexico or some other overseas location. One of the reasons some manufacturing plants move to the south is for the tax breaks and cheap labor with non-union workers. Many will disagree with me but I believe the process started to close the Alabama plants was when they voted to go union. I have friends at New Era and I know they will be hurting because there are few jobs in the area. Also due to the lack of spending power of the former New Era workers some local businesses will suffer income losses and may have to downsize their work force. This also puts 350 people on the state unemployment rolls.

It will be the same as Vanity Fair, send all of our American's work to Mexico. I can't knock the Mexican's for now, they are paying my pay check now...

[Papa2]

All I can say is Im so very very sorry that people may or as it looks like they will lose their job dont go blaming it on the Unions if it hadnt been for the Unions over the years people woudlnt have what they have now! And if you wish to argue wiht it go back and lookhow it was before unions were formed!

[uwa_amanda]

Originally Posted by mmcd3182

Sorry to hear this. How high did new era rank as being an employer for the area? 300-400 jobs for Demopolis is a really hard hit.

If you've got any kids getting ready to graduate highschool -- point them in the direction of trade school or a 2-year community college degree -- we're going to be needing a lot of laborers for all of the work being done to repair / re-arrange infrastructure. Most four year degrees aren't going to help very much right now in most areas, and I don't see it getting much better. However, with a trade or a degree in nursing or teaching they would be in a good place for the future years.

I wouldn't put too much stock in a teaching degree right now. My husband has been out of college as a certified science teacher for over a year and has yet to find a job other than substitute work. He has been looking at everything now because of the budget cuts by the state.

[mmcd3182]

Originally Posted by uwa_amanda

I wouldn't put too much stock in a teaching degree right now. My husband has been out of college as a certified science teacher for over a year and has yet to find a job other than substitute work. He has been looking at everything now because of the budget cuts by the state.

There are some availabilities in some community colleges in this area. I don't see many high schools hiring other than substitutes right now, but universities and community colleges are both really looking for teachers right now. I know Livingston High was looking for someone -- basically was offered a math / sci teach job over there right out of college; but that was 2 years ago.