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Striking Maine Shipbuilders Vote to Approve New Contract, Return to Work - IndustryWeek

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Three weeks after local union leadership reached a tentative agreement with Bath Iron Works, members of the International Association of Machinists and Aerospace Workers voted online and by telephone to confirm the agreement and seal the deal. According to the IAM, 87% of 4,300 Local S6 members voted to approve the three-year collective bargaining agreement with the Bath, Maine-based shipbuilding company and put an end to the strike, which lasted a total of 63 days. They will return to work Monday, August 24, building destroyers for the U.S. Navy.

Local union leadership voted to begin the strike June 22 shortly after receiving a “best offer” from General Dynamics, which operates Bath Iron Works. According to the union, the initial contract offered included unwelcome changes to worker seniority and subcontractor policies. The latest contract, reached with the help of federal mediators, “includes strong job protections against expanded subcontracting and preserves seniority rights,” according to the IAM.

According to the Associated Press, the agreement also includes the original proposal’s annual raise schedule of 3% for the three-year lifetime of the agreement and streamlined rules for subcontracting, a sticking point in negotiations. In a pair of dueling editorials published by the Portland Press Herald, IAM Local S6 President Chris Weirs and Jon A. Fitzgerald, vice president of BIW argued over the necessity of subcontractors: Weirs, in his piece, said that BIW was attempting to outsource jobs to out-of-state contractors, to which Fitzgerald responded that existing subcontracting policy made it onerous for the company to hire people for seasonal tasks like shoveling snow.

Statements from union leadership and BIW emphasized the need for Bath Iron Works to return to work speedily: the AP reports that General Dynamics was already behind schedule at the facility by more than six months before the strike began. Tension between workers and management increased before the strike as earlier cuts, intended to keep BIW from getting priced out of Navy contracts, resulted in fewer new contracts than hoped for by management.

“This contract reflects the commitment of all BIW employees to improve schedule performance and the economic package ensures that manufacturing careers at BIW continue to be among the very best,” read a statement from Bath Iron Works.

Local S6 President Wiers said the strike was a “testament” to local union leadership, its negotiating committee and “the incredible power of solidarity shown by our membership.” “Now that we successfully protected our contract language with respect to subcontracting and seniority, we need to get back to work and continue to prove to the U.S. Navy that ‘S6 built is best built.’”

Late August 7, the International Association of Machinists and Aerospace Workers Local S6 negotiating committee reached a tentative agreement with General Dynamic’s Bath Iron Works. While still subject to ratification by union members, the tentative agreement will allow the union’s members return to work building ships following a lengthy strike over wage disagreements and changes to the pension and subcontractor rules. According to General Dynamics, roughly 4,300 union members participated in the strike at its Bath, Maine shipyard, which began June 22.

According to General Dynamics, the proposed agreement covers the use of subcontractors, work rules for accelerating Bath Iron Works’ schedule performance, 3% wage increases in each year and continuation of existing benefits. In a piece on the IAM’s website, the IAM S6 said the agreement keeps existing subcontracting language, healthcare premiums, and senior preferences.

Dirk Lesko, the President of Bath Iron Works, said leadership worked “hand-in-hand” with the union negotiating committee on the agreement. In a statement, he said he hoped “our most valued employees” would “return to work soon so we can get on with our important mission of building ships for the U.S. Navy.” Phebe Novakovic, CEO of General Dynamics, said she was “pleased to have reached an agreement” with the union and credited assistance from Peter Navarro, a trade advisor to the White House, and AFL-CIO department president Jimmy Hart for “bringing the parties together.”

IAM General Vice President Brian Bryant commended “the entire membership of Local S6” for their persistence. “Their strength and resilience allowed the negotiating committee to bring back this agreement.” IAM International President Robert Martinez Jr. and IAM Local S6 President said they were “proud” of the striking workers.

A pair of dueling editorials published in June by the Portland Press Herald spelled out the terms of the disagreement. On June 17, the Herald published an editorial by Chris Wiers, president of the Local S6, in which he criticizes the company for attempting to “outsource jobs to out-of-state subcontractors, attack employee seniority provisions and dramatically increase employee healthcare costs.”

In response, Jon A. Fitzgerald, VP and general counsel of BIW, noted that the offer included wage increases to more than make up for the increased healthcare costs, and that changes to subcontract policies were to facilitate work unrelated to shipbuilding like shoveling snow. “It is our responsibility to ensure the competitiveness of one of the state’s largest employers,” he wrote, noting that BIW had recently lost a competition to build a new frigate. “This includes proposing changes to restrictions on our ability to muster and deploy every available resource.” On June 21, 87% of union members voted to approve a strike, which began the following day.

“We appreciate the hard work of all who contributed to this effort, including both the BIW and LS6 negotiating committees as well as the Federal Mediation and Conciliation Services, who will continue to work with both parties to implement the agreement when it is ratified,” said Lesko. 

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