(BUFFALO, NEW YORK) – In what Union Officials describe as “devastating news,” 192 Workers employed at the last Unionized New Era Cap Company Manufacturing Plant in the United States is slated to close its doors in March 2019.  World-known New Era, which is headquartered in Buffalo, made its plans known publicly Tuesday (November 13th), which shocked its Communications Workers of America (CWA)-represented Employees.

“A number of the Workers have been with New Era for forty years - families, husbands and wives.  One Worker said today he’d worked there since he was (18 years old).  It all comes as a ‘shock.’  It’s ‘devastating,’” CWA District 1 Staff Representative Erin Bowie, who was at the plant in the Town of Derby this morning for meetings, told WNYLaborToday.com.

The Buffalo News reported the closure of the Derby plant represents a “pivot” in New Era’s business model, which means now focusing on social marketing, e-commerce and quick turnaround times for customer orders.  

New Era is world-known for the design, marking and branding of on-field headwear and caps for Professional Sports and their fans, including the Major League Baseball, the National Basketball Association (NBA) and the National Football League (NFL).

The Buffalo News also quoted unnamed company officials at New Era who expected orders will be shifted around their global supply chain - “from whomever can make it.”  In that context, they told The News, a plant with a fixed capacity and a single product line - baseball caps - was no longer viable.  Those same company officials The News talked to disputed the notion that New Era was closing a more costly Unionized plant in favor of shifting work to Miami, where 120 Workers are not Unionized.  New Era closed its Unionized operations in Alabama a decade ago.

New York State’s two U.S. Senators - Chuck Schumer and Kirsten Gillibrand - are “upset” over New Era’s plans to leave Western New York, Bowie told Your On-Line Labor Newspaper. 

In the past, a number of high-profile Lawmakers – from New York State Governor Andrew Cuomo to Schumer, stepped forward to help keep the NFL Buffalo Bills in Buffalo after long-time and founding owner Ralph Wilson passed away.

Ironically, New Era bought the naming rights for the Bills’ home stadium in Orchard Park, which is now known as New Era Field.

On another front, it was not known how much in taxpayer incentives New Era has received over the course of time to improve its Derby Plant, but Bowie said the Town of Derby was certainly going to take a hit – from a loss of property tax revenue to the loss of jobs.

“While this is ‘devastating’ news, CWA will work (with Federal, State, County and Local Elected Officials in an effort) to keep the plant open,” Bowie said.

The Derby Plant is New Era’s only U.S. headwear-manufacturing facility - producing between two million and 4.5 million caps a year, which includes all headwear worn on-field by MLB Players, The News reported.

The company, which employs 1,400 people globally and has revenues of about $750 million, according to The News, produces 65 million caps and hats each year.  Most of those are made in China, Vietnam, Bangladesh and Haiti, where New Era purchases the headwear from third-party manufacturers. 

The CWA-represented Workers in Derby – who make $20 to $30 per hour according to Union Officials, stitched logos on the headwear.

New Era’s deal with Major League Baseball, which runs through 2030, requires all on-field caps be American made, The News reports.  In accordance with that contract, New Era is shifting the manufacture of its on-field headwear to Miami, where it owns a plant that specializes in the on-demand screen-printing of apparel for its 5th & Ocean label.  That Miami facility is the sole manufacturing plant still owned by New Era, which opened the Derby facility in the 1960s.

During the last decade, New Era has focused intensely on design, marketing and branding, The News reported.  Along with its pact as the on-field headwear provider for MLB, New Era has an exclusive deal with the NBA through 2025 and a multi-year pact with the NFL, which the company is currently in talks for an extension.

New Era’s Collective Bargaining Agreement (CBA) is with the CWA Local 14177, which represents those 192 workers in Derby. 

The CBA required the company inform the Union of its plans.

New Era’s CWA-represented Workers struck for a better contract back in 2004.

In its release, New Era said: “The company has informed the Union of its contemplated decision and expects to meet with the Union to discuss the matter in the coming weeks.  New Era is prepared to offer the affected Employees benefits and severance at levels beyond what is required in the current agreement.”

New Era’s Downtown Buffalo headquarters, where 337 people work, is reported to be not affected by the Derby Plant closing.

For More On This Labor News Story, Go To: https://buffalonews.com/2018/11/13/new-era-plans-closure-of-derby-manufacturing-plant-in-march-2019/