Workers continue strike at key Navy shipbuilding yard amid missed deadlines and fight over contractors

WASHINGTON — For the past month, thousands of production workers at a key U.S. Navy shipbuilding facility have been on strike as federal mediators and union leaders struggle to settle a contracting dispute.

Nearly 4,300 workers at Bath Iron Works in Maine went on strike on June 22 following a decision by the company to expand its use of low-wage and out-of-state contractors. Bath Iron Works, a subsidiary of defense giant General Dynamics, contends its aim is to streamline the hiring of subcontractors.

The shipyard, which has delivered more than 425 vessels, builds the U.S. Navy’s Arleigh Burke-class guided-missile destroyers, which are considered the workhorse of America’s fleet. And while the shipyard represents a vital component of U.S. defense manufacturing, the production site has recently missed out on lucrative Department of Defense and Department of Homeland Security contracts.

The worker standoff comes as Bath Iron Works struggles to meet Pentagon contract delivery deadlines. The company is currently operating on a year-long delay, with the worker strike as well as the coronavirus further complicating logistics and production timetables.

Earlier this year, the Pentagon awarded Italian shipbuilder Fincantieri Marine $5.5 billion to develop the U.S. Navy’s newest class of warships. According to the U.S. Navy contract, the Italian Fregata Europea Multi-Missione, or FREMM, multimission warship will be built at Fincantieri’s shipyard in Marinette, Wisconsin.

“This is one example of why the company wants to supplement the work at the yard by bringing in more contractors,” a person familiar with the company’s plan told CNBC. “This is an effort to get the yard back to being competitive and to catch up on its delivery schedule,” said the person, who spoke on the condition of anonymity.

As union workers take to the sidelines, forfeiting pay and health-care coverage, the company’s production line has hummed along.

Article source: https://www.cnbc.com/2020/07/23/workers-continue-strike-at-key-navy-shipbuilding-yard-in-fight-over-contractors.html