New Era Cap Co. and the local teamsters union have reached a deal at the company's 118-worker distribution center in Mobile, AL. Details weren't released.





This marks the first contract for the warehouse, where workers voted 57-53 on July 12 for union representation. Recent accusations of racial discrimination led to major media play for the situation with advocate for civil rights and worker rights becoming involved.



The agreement arrived at a deadline set by the union and the National Association for the Advancement of Colored People after which they promised to pressure Major League Baseball to take action against New Era.



The contract provides a comprehensive package which includes hourly wage increases and enhanced health insurance coverage for the workers, while allowing New Era to bring best practices to its Mobile DC to increase efficiency. Importantly, the contract also addresses the worker rights issues raised by the NAACP in a report released last month, including a strong diversity policy.

“We are pleased to have reached what we feel is a mutually beneficial agreement for both New Era and our workers,” said Christopher Koch, CEO of New Era. “This contract solidifies what I hope will be a long-standing and positive relationship between New Era, the Teamsters Union and the NAACP who are all committed to producing a great American product that is part of our national pastime.”

The collective bargaining agreement is being recommended by the Teamsters Local Union 991 New Era Bargaining Committee for ratification by 95 workers in New Era's Mobile, Alabama distribution center. New Era Cap workers at the facility voted to join Teamsters Local 991 on July 12, 2007.



In addition to the Mobile DC, New Era also has manufacturing facilities in Jackson and Demopolis, Alabama, as well as Derby, New York. As part of the agreement, New Era and the Teamsters mutually agreed to neutrality, which will permit the union to begin organizing efforts of New Era employees in its Jackson facility. Moreover, New Era agreed last month to allow the Communications Workers of America to freely solicit employees in Demopolis to unionize that facility.

“This agreement represents a culmination of a substantial effort on both sides. We feel confident that New Era Cap is committed to providing a diverse workplace where everyone is respected, supported and provided with opportunity. The proposed contract will provide a framework that will benefit New Era workers and the company's growth,” said Teamsters General President, Jim Hoffa.

Last month, the NAACP made recommendations to New Era to address a variety of issues. This labor agreement includes provisions incorporating the NAACP's recommendations. New Era and the NAACP have agreed to work together to implement best practices in its Mobile, Alabama facility.

“This was the perfect collaboration between organized labor, business and the civil rights movement. Working together we will promote the rights of New Era workers and the vitality of this company,” NAACP Chairman, Julian Bond said.

New Era has been producing headwear for over 87 years, and is the exclusive supplier of Major League Baseball's on-field caps. Unlike the vast majority of other apparel manufacturers, New Era makes a substantial portion of its product in the U.S., and is the last American company capable to supply domestically-produced caps to major professional and college sports teams.




New Era was also under fire from college students who push for better working conditions for its workers. The University of Wisconsin-Madison cut off its license to the company, and other schools have moved in that direction.





A contract could help ease those concerns at least partially, said Larry Root, a professor at the University of Michigan told the Press-Register in Alabama. Root is the head of a university committee that monitors labor conditions. The school is among several that have written to New Era with concerns.



 

“If the Teamsters felt the concerns that they had earlier were no longer a concern, that would be an important piece of information for us,” Root said.