Demopolis’ New Era industry to close
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 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 Derby ratification vote is scheduled for Feb. 2. There are currently 351
employees in the Demopolis facility and 330 employees in the Derby facility.
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