CWA-Represented New Era Cap Co. Workers Ratify New Agreement That Keeps Derby Manufacturing Plant Open
Three-Hundred-And-Fifty Local Jobs Saved By Union Workers’ Decision That CWA Officials Say “Was Really Made To Save The Derby Plant”
(DERBY) - By a vote of 197-to-57, Unionized Workers at Buffalo-headquartered New Era Cap Co.'s Derby facility today ratified a new four-year agreement that will keep the Erie County plant open and make it the only major licensed collegiate and professional sports head-gear manufacturing operation in the U.S., Communications Workers of America (CWA) announced.
"It was a tough and painful decision," CWA District 1 Upstate New York and New England Director David Palmer told WNYLaborToday.com this evening after today's vote. "But at the end of the day it was in everyone's best interest."
New Era recently announced it would cut back its U.S. manufacturing plants and had begun the process of making a decision to close either its Derby operation or its Alabama plant. Each plant produces about six million hats a year, the CWA said.
"(New Era's) volume has fallen off," Palmer had told WNYLaborToday.com of the economic problems faced by the company, which is most known for its production of hats for Major League Baseball. "What's happened, in this economy, is that people are not buying as many hats anymore, and the boutique-type/specialized hats they've been making for small companies is drying up because those businesses are closing. So they're rolling back their manufacturing operation to 'pre-1998.' The company hopes the level of business will come back at the end of 2010. When that happens, they've told us they'll look to hire more employees."
Last Wednesday, CWA representatives announced that a tentative agreement had been reached between New Era and the Union on a new four-year agreement that will now keep the Derby plant open, where 350 are employed. The agreement involved concessions in the areas of wages and a bonus system, Palmer said. However, the Derby vote meant New Era will close its Union-represented manufacturing plant in Alabama.
"We had some very good group meetings with our members and it was tough (for them) to step up and make concessions. There was anger on their part because their hard work had helped build the company, but the table had been set and (the decision to approve the agreement) was really made to save and keep the Derby plant open," Palmer told WNYLaborToday.com.
Palmer also said New Era had "engaged" the CWA since a 2001 Labor dispute and has "a good working relationship" with the Union. "These discussions occurred sooner than later," said Palmer - making the impression both sides had worked together to come to an acceptable end.
It is the CWA's anticipation the Union will bargain "first refusal for vacancies (at the Derby plant) for Alabama workers who want to be transferred up," he said. Another 350 CWA-represented workers are employed at New Era's Demopolis, Alabama plant.
"Absolutely," Palmer said, "It's my understanding workers in Alabama will be given the opportunity to relocate to new jobs at New Era's Derby plant."
On another front, Palmer said CWA will continue to reach out and work with United Students Against Sweatshops (USAS), as well as and New York's two U.S. Senators, Charles Schumer and Kirsten Gillibrand, for their help in an overall effort that could ultimately convince the NCAA of the worth of relocating its university products manufacturing base from China to the United States. If done, those manufacturing jobs would be moved back to U.S. soil and create a number of new jobs at New Era's U.S. manufacturing operation, which Palmer says is "the only one of its size that makes six-to-seven-million hats a year in the United States."
"In the event we're successful, the Derby plant has the capacity to handle that work. It would mean just adding more jobs," Palmer said.
In late December, Palmer made WNYLaborToday.com aware of what the CWA hoped to accomplish by keeping New Era's two U.S. manufacturing plants here and in Alabama open while moving forward on this unique approach.
"We wanted to try to convince them to keep both plants open and we're confident we can figure this out. In Derby you have the most senior, productive workforce that makes a quality, on-time product. (For example,) You could increase production without any additions to that workforce. In the year 2000, they produced six million hats in Derby," Palmer said.




















































































