A group of 2,500 submarine workers is threatening to walk off the job over a contract dispute with General Dynamics Electric Boat, drawing in the president of one of the largest labor unions in the country to the negotiating table.
The Marine Draftsmen’s Association-United Auto Workers of America (UAW) Local 571, which covers the shipyard workers who create technical drawings for General Dynamics’ Electric Boat, met with Electric Boat’s representatives at the negotiating table Tuesday following the union’s authorization of a strike. UAW President Shawn Fain, as well as UAW Regional Director Brandon Mancilla, joined the union at the bargaining table.
Strikes require an authorization vote by unions. MDA-UAW Local 571 can now begin a strike if it chooses to do so. The local union’s vice president confirmed to USNI News that a strike has not started, as of Wednesday afternoon.
“This isn’t just any job — it’s mission-critical work, funded by the American taxpayer. And yet, while General Dynamics pockets billions in government contracts, the very people doing this essential work are being left behind,” Fain said at a Monday rally following the strike authorization.
“The company has a choice. They can get back to the table and get serious about our demands.”
Negotiations between MDA-UAW Local 571 and Electric Boat began Tuesday but ended after the union walked away from GD’s offer.
Workers are negotiating for cost-of-living adjustments, the return of pensions and affordable healthcare, according to a news release from the union. Electric Boat told USNI News in a statement that it offered a contract with wage increases and a better retirement package.
“Electric Boat stands behind its offer to the Marine Draftsmen’s Association (MDA) – it includes a historic 23.3 percent general wage increase over the life of the contract, plus outstanding benefits and an increased retirement package,” the company said in a statement to USNI News. “EB has successfully bargained with the MDA and our other union partners for over 30 years without any significant disputes. We value our MDA partners and we believe our offer is compelling. While we prefer to reach a mutually beneficial agreement, we are actively preparing a business continuity plan in the event of a work stoppage. We will not waver from our commitment to continue building submarines, the nation’s top national security priority.”
Tensions between the union and General Dynamics are longstanding, with the union already filing unfair labor practice charges with the National Labor Relations Board, according to the release.
According to the NLRB’s website, MDA-UAW Local 571 filed a charge of refusing to bargain/bad faith or surface bargaining against Electric Boat on April 14.
The negotiations come as submarine builders Electric Boat and HII’s Newport News Shipbuilding are waiting on the contract award for two Virginia-class attack boats that include special provisions and money for workforce development that could provide funds potentially for situations like the ongoing dispute, USNI News understands.
Congress appropriated $9.4 billion for Baltimore (SSN-812) and Atlanta (SSN-813) in Fiscal Year 2024 and the December continuing resolution bill added an additional $1.95 billion to cover the cost of the two boats as part an overall $5.7 billion injection.
The funds “allow the Navy to cover fact-of-life cost increases on the two FY 24 boats and one FY 25 boat. They also provide funds for additional workforce development and allow us to target funding at specific productivity areas that we are working at with our customer,” General Dynamics CEO Phebe Novakovic said in a Jan. 29 earnings call.
The contract awards for Baltimore and Atlanta were expected earlier this month but have been delayed due to additional review by the White House’s Office of Management and Budget, USNI News has learned. OMB did not respond to questions sent by USNI News this week.
Overall, shipbuilders have said the cost of new ships will increase, driven largely by the need to pay shipyard workers more to compete with less strenuous jobs in the service industry that pay almost the same.
