Olin Corp. is moving its Winchester Centerfire plant to Mississippi after the Association of Machinists and Aerospace Workers District 9. Union rejected their proposed contract for the second time. BND.com reports …

The Clayton, Mo.-based company said that its Winchester Centerfire division in East Alton and the unit’s approximately 1,000 jobs will be relocated to a new 500,000-square-foot, state-of-the-art plant to be built in Oxford, Miss. The relocation is expected to take place over several years.

…

the union voted “no” Tuesday in the revote — 593 to 470. The union also voted against this contract on Oct. 17 by a two-to-one margin. St. Peters said most workers refused to accept concessions because they believe the munitions manufacturer has been profitable.

Just 56% voted to reject the contract. From what I have read it does not sound like any of the parties were at fault. Winchester wanted to cut costs and just under half the union employees were willing to accept a wage freeze. A slight majority wanted to rather relocate (and risk their co-workers jobs) rather than earn less in the future. The real loser here is the community of East Alton, IL who are losing a major employer.

Olin recently reported that Winchester’s profits have been declining …

Winchester’s third quarter segment earnings of $18.8 million are lower than the record earnings of $23.0 million achieved in the third quarter of 2009. The decline reflects the combination of lower commercial volumes and higher commodity costs.