Editor’s note: This article is by Robin Smith of The Caledonian Record, in which it was first published Oct. 10, 2013.
NEWPORT CITY — Revision Military cut its Newport City helmet plant workforce in half last week at the beginning of the federal government shutdown due to market uncertainty, officials said Wednesday.
And that led the city council this week to withdraw a planned tax abatement that depended on an increase in the company’s Newport City workforce.
Revision Military had 57 people working at the leased plant at the Newport City Industrial Park on U.S. 5 at the end of September, plus two temporary workers, said Gregory Maguire, director of legal and government affairs for Revision.
“We were actually hoping to see the numbers increase” at this time, Maguire said.
The employees were laid off with the understanding that they would be rehired when the shutdown ends and the U.S. Department of Defense again puts out bid requests for materials.
“We did everything possible to avoid reduction of staff,” Maguire said. “We are doing what we can to keep the factory open.”
The company does not want to lose its highly skilled Newport area workforce, working at the only U.S.-based plant that makes specialized military helmets in all sizes and specifications, Maguire said.
The company, like many others that depend in some way on federal business or contracts, is waiting and watching “what’s playing out on the national stage,” he said.
The company is trying to get answers about when bids might be sought. “There are just no contracts now,” he said.
The U.S. military has a significant force and they will need new helmets, Maguire said. “We’re hoping to have answers quickly.”
Revision Military of Essex last year purchased the MSA plant and equipment at the industrial site owned by Bob Miller’s REM company. Revision secured a $21.6 million contract from the U.S. Department of Defense to make 90,000 helmets. The company was expected to go from 40 jobs last October to 80 at the end of the year.
Revision has secured contracts other than with the U.S. Defense Department this year. Officials last fall had hoped for more U.S. contracts.
The issue of Revision’s tax abatement came before the city council because the city has to send out property tax bills and the city clerk did not know if the abatement should go forward given the reduction in the number of employees at Revision.
The city council heard from city manager John Ward Jr. on Monday about the reduction in force to 24 employees at the Newport City plant.
The company needed 80 employees to qualify for the first year of a five-year tax stabilization plan, in which property taxes on the leased plant would be reduced to zero in the first year and increase gradually to full value after five years.
Alderman Richard Baraw lamented the fact that the company had been affected by sequestration.
Alderman Tim de la Bruere said the city did not have a statement from the company about how long the layoffs would last.
But Ward said that the city’s other taxpayers should not be asked to pick up the tab unless Revision met the number of new employees that the council’s policy for tax abatement requires.
The council voted to stop the tax abatement for this year, with hope that Revision would be able to apply for it again next year and earn tax breaks in the future.
Maguire said Revision was not aware of the city council’s decision but appreciated the city’s offer of a tax abatement in the first place.
The city council asked Ward to investigate whether Numia Medical has met its obligations for job creation at its new plant in the former Vermont Teddy Bear factory. Ward said that is a slightly different situation, since Numia owns the property and has made investments in it.
Ward said Numia Medical has been affected by new taxes on medical devices under the Affordable Care Act.
