New Era announces temporary layoffs
Published 9:22 pm Friday, August 14, 2009
New Era Cap Co. Inc. has announced limited layoffs at its three domestic manufacturing plants in Alabama and New York state, including the plant in Demopolis.
According to Demopolis plant manager Ken Upshaw, those layoffs would begin Monday.
The limited layoffs will affect about 40 percent of the company’s U.S. workforce over the next eight weeks.
On Thursday, Upshaw was not sure how many local workers would be affected, but he did know that it would be “a significant number.”
According to a press release issued by New Era Caps, the layoffs were made in close association with New Era’s union partners, Communication Workers of America and the International Brotherhood of Teamsters.
“While seasonal layoffs like these are part of New Era’s regular business cycle and have happened before,” the press release states, “the company is seeing a slowdown in consumer demand for its products as a result of the global recession.”
The release also states that New Era will monitor its customer order volume carefully and plans to bring the affected workers back if order volume rebounds.
Affected workers continue to receive company benefits in accordance with New Era’s collective bargaining agreements.