Remington Arms Will Furlough Many Employees This Summer

Remington Arms will furlough up to 500 employees at its Illion, NY plant and up to 199 employees at its Huntsville, AL plant this summer. The upaid furlough will be from June 3rd until August 2nd.  The Ilion plant was already scheduled to be scheduled for a maintenance shutdown for the first two weeks of July and employees are getting paid leave for that time.

Ilion Mayor Brian Lamica had this to say to the Utica Observer-Dispatch:

Ilion Mayor Brian Lamica received word of the layoffs Tuesday. He was told that one of the product lines, employing about 280 people, will continue to run through the summer, but the rest will be idled.

“During that period there’s a normal two-week shutdown. That will be a paid vacation period for those who have paid vacation,” Lamica added.

He noted that Remington is planning to bring back the entire workforce Aug. 9.

“It’s not good,” Lamica commented of the move. “I’m optimistic things will pick up for them come early fall and everybody will be back to work. Two weeks is one thing, but two months — even though two weeks would be paid — I feel sorry for the workers and their families.”

The furlough could result in some workers leaving the area to find another job, the mayor said.

“I’ve been hearing rumors for about two weeks. I was hoping things would turn around. There’s too much in the warehouse and not enough being bought,” Lamica said.

According to the Rome (NY) Sentinel, no notice was given to the NY State Department of Labor as may be required under the New York State Worker Adjustment and Retraining Notification Act. However, in Alabama, the Department of Commerce did receive notice and has said it will work to help the impacted employees.

No stories have detailed which product assembly lines will be affected by the furloughs.

Chuck Lester of the Village of Illion Board of Trustees was interviewed by Utica WIBX Radio and had more details in the video recording of it below.

Remington Makes It Official

Rumors started on Saturday that Remington Outdoor Company was going to fold the Para-USA label into the Remington label.

From the blog of a Raleigh, NC gun store called Carolina Gunrunners which broke the news early:

We have just gotten news that Para will no longer make pistols after the first quarter of 2015. If you currently own a Para 1911 they will continue to honor the warranty. The plan is to focus on one 1911 brand, and that will be the Remington 1911. We will start seeing new Remington 1911’s but they will look more like a Para. The new Remington 1911’s will be available in various sizes from 3 and ½” barreled compacts to full size double stacked frames. The new Remington 1911’s will be announced as they begin to approach manufacturing readiness. Until then, they will not be making any announcements about the change.

Remington had already announced that they were closing the suburban Charlotte facility that housed Para and moving it to their new facility in Huntsville, Alabama.

I think Remington has been telegraphing the end of Para-USA over the last year. You saw a lot of $100 rebates plus amazingly low prices on the Para-USA 1911s. I think this was an effort to clear out inventory before the rebranding. Then at the SHOT Show, I saw Para’s pro-shooter Travis Tomasie wearing Remington colors along with Gabby Franco.

Yesterday, Remington Outdoor Company made it official in an amazingly frank press release. They admitted that they botched the Marlin relocation and the introduction of the Remington R51 pistol. I doubt there is anyone out there that would disagree with them on this. That is why my one and only Marlin lever action was built in 1962 and not 2014.

The press release continued:

In 2012, with a goal of expanding its handgun line, ROC acquired Para USA (“Para”), a company that specialized in the production of competition, high capacity, and double action 1911-style pistols. Following Remington’s acquisition, Para, which had been experiencing quality control issues, saw a steep decline in warranty claims.

In 2014, ROC announced its new, world-class firearms center of excellence in Huntsville, Alabama. Here, Remington is integrating product development, engineering, production, and quality control – a first in Remington’s 200-year history. The integration of modern sporting rifles, suppressors, and Remington pistols commenced immediately, and Para is scheduled to move to Huntsville next month.

I remember speaking with a Para USA engineer at the NRA Annual Meeting in St. Louis in 2012. This was soon after the Freedom Group acquired Para. He made the point that Remington engineers had started working with Para to tighten up quality and tolerances in their products. He told me that before then they just didn’t have access to this level of expertise.

Remington says that they will be keeping their own R1 line of 1911s along with “popular Para products, characteristics, and names such as the ‘Warthog'”. I take this to mean that you will see a rationalization of the two lines with duplicate products dropped and the best selling of the Para products retained. I do wonder if they will continue with the LDA or light double action line of pistols.That is one of the things that made Para-Ordnance and Para USA distinctive.

I do have one Para 1911 in my collection. It is a Officer-sized model called the CCO with a the LDA trigger. It is from the Para-Ordnance days and is roll-marked “Ft. Lauderdale, FL”. It is a fairly accurate pistol but it does have its ammo preferences. I have had no problem feeding it .45 ball but give it any hollow-point ammo and it just stops. I haven’t tried it with stuff like CorBon PowRBall but I really don’t consider it my carry gun so why bother.

Remington says that they will continue to honor Para’s lifetime warranty and continue providing warranty service.

I hope this goes well for both Remington and Para. Remington has a sullied reputation for handguns given the R51 while Para had a reputation for innovation but was plagued by quality issues. Given that the R51 was in actuality made by Para, I guess their quality issues carried forward on that as well. Still, a new plant with new machinery and improved engineering (and proper testing) should put both of these brands back on the road to success. Here’s hoping that “should” becomes “will”.

Some Thoughts About Remington, Jobs, And Its Union

I will be the first to admit I don’t know much about the inner workings of unions. I was born and bred in North Carolina which is both a right-to-work state and the least unionized state in the nation. While I have and have had relatives who were union members in the North, I’ve never worked in a job that lent itself to unionization.

Yesterday I received a very perceptive and enlightening email regarding Remington, jobs, and unions. The person who sent it to me is very well versed in the inner workings of unions but prefers no attribution and to remain anonymous.

The first point he made is that Remington Outdoor Company will say nothing about moving jobs from Ilion to Huntsville for a couple of reasons. First, anything that Remington says that could be interpreted as coercion or related to bargaining would likely lead to serious charges brought by the National Labor Relations Board. The second reason is that Remington’s contract with UMW Local 717 could very well contain language or clauses that would lead to automatic unionization of the Huntsville facility. This is referred to as successor language.

The second point he made is that without successor language, it doesn’t look good for union representation in the South especially given the loss at the Volkswagen plant in Chattanooga. Interestingly enough, Alabama has the highest unionization rate of any Southern state.

Remington has a large operation in Ilion and it won’t be easy to move. But given time, you will start to see operations begin to move South. It is my understanding that R&D is already slated to move to Huntsville. The city, by the way, is also home to the Redstone Arsenal which has as one of its component organizations that Army Material Command as well as a number of Ordnance Corps units. If the Republicans take control of the US Senate, Sen. Jeff Sessions (R-AL) is the 3rd ranking Republican on the Senate Armed Services Committee and could easily get the ear of the DoD for Remington.

I was able to look at an earlier collective bargaining agreement between Local 717 and Remington. While I did not find successor language in it, I did see language that mandated certain models produced by Remington must be made in Ilion. Article II- Scope and Coverage, Section g – Job Security says that products such as the Remington Model 7, 700, 7400, and 7600 rifles and the Remington Model 870, 1100, and 1187 shotguns “will continued to be produced only at the Ilion plant”. It did allow for Remington to procure component parts elsewhere. This contract expired in 2007 and I can’t imagine succeeding contracts not containing similar language.

The current contract was ratified in December 2012. The highlights of the contract as publicized by the United Mine Workers of America HQ include:

The new pact includes a provision extending Local 717 jurisdiction to any new plant that Remington builds, as the company is presently considering, within a 100-mile radius of the main plant in Ilion, N.Y. In addition to a $500 signing bonus, the contract features 3 percent wage increases in each of the first four years, and 3.5 percent in the final year. It also maintains the current level of medical benefits, improves the language governing overtime and creates a new position, Utility Specialist, aimed at reducing the reassignment of regular workers.

This contract was ratified two days before the shootings in Newtown, Connecticut. They could not have imagined the NY SAFE Act when the collective bargaining agreement was ratified. If this contract contained the same earlier language as to what models would be produced at the Ilion plant, you have to wonder if it extended to the Bushmaster AR-15s whose production had been shifted from Windham, Maine to Ilion. It is hard to conceive that a company would want to take the chance of producing a firearm in a state where it couldn’t be sold.

To sum it all up, while Remington’s current contract with Local 717 may preclude the rapid transfer of existing production lines from Ilion to Huntsville, production will start shifting South over time.

The Official Announcement From Remington And Alabama

Remington, the Governor’s Office, and the local governments involved sent out a joint press release yesterday announcing the expansion of Remington Outdoor Company in Huntsville, Alabama.

The release is below:

OFFICE OF GOVERNOR ROBERT BENTLEY

FOR IMMEDIATE RELEASE: MONDAY, FEBRUARY 17, 2014

Remington Outdoor Company Announces Expansion to Alabama

HUNTSVILLE AND MONTGOMERY, AL — Governor Robert Bentley on Monday announced Alabama has recruited the country’s oldest firearms manufacturer to Alabama.

Remington Outdoor Company (ROC) will expand to the old Chrysler building in Huntsville, and create more than 2,000 new jobs within the next ten years. Governor Bentley joined Remington Chairman and CEO George Kollitides and other state and local leaders for the official announcement.

“I am honored to welcome Remington to Alabama,” Governor Robert Bentley said.

“The Alabama workforce, our business climate and our quality of life continue to make Alabama extremely attractive to companies. Remington will soon experience the same type of success that other companies in Alabama have already experienced. Today’s announcement will create more than 2,000 jobs in Huntsville, and reflects a statewide capital investment of $110 million. Our relationship with Remington is just beginning, and I look forward to a continued partnership with the company.”

“With the acquisition of this facility, we plan to create more than 2,000 jobs in Huntsville over the next decade,” said George Kollitides, Chairman and CEO, Remington Outdoor Company. “This additional capacity is essential to fulfill demand and introduce new products. Having watched our Company grow from 2,400 employees in 2008 to 4,200 employees by the end of 2013, a five year, 75 percent increase, it is easy to see why we’re investing now.”

In 2013, ROC made significant strides including its ammunition facility expansion, firearm capacity growth, winning a multitude of highly competitive military and law enforcement contracts, launching its 1816 lifestyle brand, and introducing a series of exciting new products such as Ultimate Defense Handgun Ammunition and the 783 bolt action rifle. Bolstered by record sales, the company chose to expand operations to Alabama.

“2013 was an outstanding year during which we grew by every key measure,” continued Kollitides. “We are capitalizing on this momentum by strengthening our positions across the board. With demand for our products at an historic high and more new product launches planned for 2014 than ever before in our 200-year history, we are investing in the future.”

Last year, ROC modernized its production facilities, re-focused its research and development on customer requirements, and ensured consistent, high-quality manufacturing. Together, these advancements demonstrate a commitment to meeting customer demand. The Huntsville expansion provides for future needed capacity to support existing product demand and a robust new product pipeline.

ROC has 19 locations in the United States, and Huntsville and Madison County officials praised the company’s decision to expand to Huntsville.

“With news of this Remington facility expansion, we have yet another example of Huntsville fulfilling its economic development promise,” Huntsville Mayor Tommy Battle said. “Our workforce is among the best and brightest in the nation, and they deserve challenging career opportunities, along with the high quality of life Huntsville provides. We are thrilled to welcome Remington to our city and region.”

“Our pro-business environment, along with the region’s extensive manufacturing experience, helped us outmaneuver two dozen other states looking to attract Remington,” Madison County Commission Chairman Dale Strong said. “This announcement represents new diversity to our local economy, and will provide an array of opportunities for skilled tradesmen, engineers and support personnel.”

Following facility upgrades, ROC is expected to begin operations in Alabama within the next 18 months.

First Official Confirmation On Remington Expansion

The first official confirmation that Remington plans to expand to Huntsville, Alabama comes from Sen. Jeff Sessions (R-AL). Prior to this, all reports have had to say that “an announcement is expected” because “high level sources” “have confirmed it”.  I sincerely doubt a senator would make such a release unless it was a done deal.

From Sessions’ Senate homepage:

WASHINGTON—U.S. Sen. Jeff Sessions (R-AL) issued the following statement today after Remington Arms announced plans to open a plant in Huntsville:

“Remington’s decision is great news and a further testament to the world class workforce in Huntsville. This plant will create good-paying manufacturing jobs for thousands of workers. We warmly welcome Remington Arms and look forward to their success and presence for years to come.”

While Gov. Robert Bentley (R-AL) did allude to it when asked, all he said was “I think Monday you’ll see something very special in the state.” That is a lot more nebulous than Sessions’ comment.

Is Remington Going To Alabama (With A Banjo On Its Knee)? (Updated)

Rob Curtis at the Military Times’ GearScout blog is reporting this afternoon that Remington Outdoor Company aka Freedom Group will be building a new plant in Huntsville, Alabama. This new plant is reported to be equivalent in production capacity to their Ilion, NY plant. However, this new plant will supplement but not replace the Ilion plant.

Remington Outdoor Co., previously known as the Freedom Group, expects to announce a major expansion to a new facility in Huntsville, Ala., as early as next week. According to two sources with knowledge of the property sale, the deal has been in the works for months and ROC executives plan to sign the papers Monday finalizing the sale of a 500,000-square-foot facility that will add approximately 25 percent more space to Remington’s existing 2.1 million square feet of existing manufacturing real estate.

Sources say the expansion was undertaken to help the company meet unprecedented demand for its products. Space in the facility is not currently earmarked for any one of the company’s 18 individual brands, but to facilitate flexibility and growth of the Remington Outdoor Company.

Before settling on Hunstville, the company was courted by no less than 24 states and various localities hoping to add hundreds of new jobs to their economies. State and local entities in Alabama made economic concessions to attract the company, sources say. The selection of the Huntsville area makes sense, with a skilled and technical workforce already in place. The area is home to the Army’s Redstone Arsenal, which has 35,000 military and civilian employees.

Other major technical employers in the area, such as NASA’s Marshall Space Flight Center, and Toyota, ensure ROC will have a large pool of talent to draw upon for its engineering, technical manufacturing and product development efforts. The fact that Alabama is regarded as a strong supporter of Second Amendment rights also played a role in the selection of the area.

More on this move by Remington at the GearScout blog found here. 

UPDATE: According to the Alabama-oriented website and blog Yellowhammer, the announcement will be made on Monday about the move by Alabama Gov. Robert Bentley (R-AL).

High level sources have informed Yellowhammer News that Remington, one of the world’s largest gun manufacturers, will on Monday join Alabama Gov. Robert Bentley in announcing that they are bringing over 2,000 jobs to Alabama.

The company is viewing the move into Alabama as an expansion, but it will likely impact their Ilion, NY plant as well. The New York facility currently employees around 1,200 people. It is expected to stay open, but with a reduced workforce.

“The company is making the move as an expansion of capacity, production and research,” a source told Yellowhammer on condition of anonymity because they were not authorized to speak publicly. “The demand for Remington products has skyrocketed recently, for obvious reasons, so they need to increase their production capacity. They will be expanding their research capabilities with the Alabama plant, too.”

The initial estimated impact on Alabama’s economy will be roughly $87 million.

 The name of the website with the above information combined with the loss for New York reminds me of that famous University of Alabama cheer which I’ll paraphrase:

Hey Tigers   New York
Hey Tigers   Cuomo
We just beat the hell outta you!
Rammer Jammer Yellowhammer
Give ’em hell Alabama

H/T Bitter on the Yellowhammer story. 

UPDATE II: Phil White, in comments to a post regarding the probable move to Huntsville, says that Remington will occupy the former Chrysler Acustar/Siemens/Continental plant adjacent to the Huntsville International Airport. The property has a 570,000 sq. ft.  manufacturing facility and a 200,000+ sq. ft. research facility. The video below is a sales promo for the property. It looks like Remington is getting a facility upon which they can build a future unlike their Ilion, NY plant.