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New Era Cap, Teamsters Union Reach Agreement

New Era Cap, Teamsters Union Reach Agreement

Contacts: TeamstersGalen Munroe (202) 439-7427NAACPRichard McIntire (410) 580-5777New Era CapDana Marciniak (716) 536-9913NAACP Endorses Measures Covering New Era Workers in Mobile Facility

February 13, 2008

(WASHINGTON and BUFFALO, N.Y.) New Era Cap Company, the Teamsters Union and the NAACP today jointly announced a tentative three-year labor agreement between New Era Cap and Teamsters Local 991 for employees in New Era's Mobile, Alabama distribution center (DC).

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 the highest quality 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.

About New Era Cap

Founded in 1920, New Era Cap Company, Inc., is the nation's leading headwear manufacturer and creator of New Era Apparel, brings to market products that transcend time, culture, sport and fashion. Producing more than 35 million caps per year, New Era is the exclusive manufacturer and marketer of the official on-field cap worn by every Major League Baseball team and their Minor League affiliates and maintaining agreements with other licensed entities. On the street, New Era is known as the Originator of the True Fitted for its signature cap style, the 59FIFTY. Some of the Company's core markets include Action Sports, Children, Fan, Suburban, Women and Fashion/Lifestyle. The Company, headquartered in Buffalo, New York, employs approximately 1,700 people world-wide in New York, Alabama and at its operations in Canada, Europe, Japan and Hong Kong. New Era is a 'Category A' affiliate of the Fair Labor Association.

About the Teamsters

Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico.

About the NAACP

Founded in 1909, the NAACP is the nation's oldest and largest civil rights organization. Its members throughout the United States and the world are the premier advocates for civil rights in their communities, conducting voter mobilization and monitoring equal opportunity in the public and private sectors.

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