Submarine Designers Secure Major Contract, Preventing Work Stoppage

The draftsmen at General Dynamics Electric Boat have successfully negotiated a five-year labor agreement that includes a notable pay increase, effectively averting a potential strike. Union leaders announced over the weekend that members will see their salaries rise by nearly 30% by the end of this contract period.

Representing around 2,500 workers, the UAW Marine Draftsmen’s Association Local 571 plays a crucial role in creating schematics for submarine construction at GD electric Boat. This company is one of only two in the U.S. capable of building nuclear submarines and employs about 10% of its workforce in this union. They are currently engaged with high-priority projects like the Columbia-class and Virginia-class attack submarines for the Navy.

The Columbia-class program, valued at $130 billion, is essential as it will replace older Ohio-class submarines that serve as our nation’s primary nuclear deterrent. The draftsmen not only designed these vessels but also provide detailed plans used during construction on-site.

Initially, GD Electric Boat proposed a more modest raise of 23% along with some enhancements to retirement benefits. However, after union members expressed dissatisfaction with this offer and voted to authorize a strike if negotiations didn’t improve, both sides returned to the table. A work stoppage could have further delayed an already behind-schedule Columbia project—over a year late and significantly over budget due to various production challenges.

Ultimately, they reached an agreement featuring an extraordinary wage hike of 30.6% over five years—an average increase valued at approximately $115,000 per member throughout the contract’s duration—as noted by UAW regional director Brandon Mancilla. The deal also maintains existing retirement policies instead of adopting new tiered benefits proposed by management; however, some demands regarding pension improvements and cost-of-living adjustments were not fully met.

“Our bargaining teams worked hard to identify mutual interests leading to better wages and benefits that enhance our employees’ lives,” stated Shawn Coyne from Electric Boat’s HR department alongside Local 571 president William Louis in their joint statement. “This agreement acknowledges how vital MDA members are in producing submarines for our Navy.”

This wage boost does mean higher production costs; however, Congress had already factored in rising labor expenses when approving funding for submarine shipyards like Electric Boat and HII Newport News last December—aimed specifically at helping these facilities attract skilled workers amidst ongoing recruitment challenges.

“The robust wage package reflects Congress’s commitment through special funding aimed at ensuring we can recruit top talent necessary for our ambitious submarine construction goals,” remarked Rep. Joe Courtney (D-CT).

The final step remains: rank-and-file union members must vote on whether or not to ratify this new contract.