HUNTSVILLE, Ala. -- Gunmaker Remington confirmed Tuesday reports out of New York that it planned to furlough workers at some its plants, including Huntsville.
The company’s deal with Alabama and local governments in 2014 included nearly $70 million in incentives. But the State of Alabama is looking to get some money back.
The Alabama Department of Commerce released a statement Thursday about working with Remington:
"We have been in discussions with Remington’s leadership over the past months regarding the company’s market challenges and the reduced demand across product lines they are experiencing as a result. This has had an impact on growth projections for the Huntsville manufacturing facility. After a comprehensive review of the existing project agreement between the State of Alabama and Remington, we have initiated a recapture process outlined in the agreement regarding incentives tied to certain project job-creation milestones.
"As stated earlier, the State disallowed Remington’s final $3 million cash incentive payment for failing to meet specified jobs and payroll targets. In addition, Remington has recently repaid the State more than $500,000 for falling short of workforce targets. In light of the company’s upcoming plans for furloughs, we will continue to monitor Remington’s current employment and payroll status to determine the appropriate course of action for the State."
A Remington spokesman told WHNT News 19 Thursday that the company was still finalizing its plans for furloughs and details were still being worked out.
But, the company told the state of Alabama on Tuesday that 199 workers would be furloughed – basically excused from work without pay – from June 3 to August 2, the Department of Commerce said.
It’s not clear how many workers would be on the job at the Huntsville site during that period. When pressed, Remington wouldn’t disclose how many people it currently employs in Huntsville.
The last figure the State of Alabama has is 450 workers, as of December 2018.
That number is slightly higher than the job target Remington has to meet to avoid default in its revised agreement with the City of Huntsville. The original agreement called for 1,000 workers locally at the end of 2018.
A spokeswoman for Huntsville said today they have not been provided any official information about furloughs and they don’t comment on speculation.
The furloughs are scheduled to start Monday
The Alabama Department Commerce said today is providing the company and furloughed workers assistance information for the furlough period. The workers are eligible to collect unemployment benefits.