Largest Private-Sector Strike Of The Year Is Headed For Union Victory

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Above photo: The end of a strike is in sight at Maine’s Bath Iron Works shipyard. Getty Images.

After nearly seven weeks on the picket line, Machinists union members will soon vote on a contract that includes everything they’re fighting for.

Bath, Maine – It’s no coin­ci­dence that the first strike in 20 years at Bath Iron Works (BIW) began months into the Covid-19 pan­dem­ic. While Maine has one of the low­est Covid trans­mis­sion rates in the coun­try, the spread of the dead­ly virus helped spark the strike that has large­ly shut down the ship­yard at BIW — one of Maine’s largest employers.

In June, when around 4,300 Machin­ists Local S6 union mem­bers at BIW vot­ed over­whelm­ing­ly to strike, many had already soured on man­age­ment over its han­dling of the pandemic.

The walk­out — which rep­re­sents the largest pri­vate-sec­tor strike of the year — has last­ed for near­ly sev­en weeks. But late last week, both sides saw a break­through as a ten­ta­tive agree­ment was reached that appears to hand the union a vic­to­ry on its demands.

BIW, a Gen­er­al Dynam­ics sub­sidiary that builds bat­tle­ships for the U.S. Navy, nev­er shut down the pro­duc­tion facil­i­ty because it was deemed an essen­tial busi­ness” by the U.S. gov­ern­ment. After a BIW work­er test­ed pos­i­tive for the virus in late March, the com­pa­ny encour­aged employ­ees not to report to work. Many did stay home for weeks — but they had to use paid vaca­tion or sick time, or work unpaid. Union lead­ers called for a shut­down with pay while also push­ing state law­mak­ers to pres­sure the Navy to allow the ship­yard to close.

They said we’re essen­tial work­ers because we build bat­tle­ships, but how essen­tial are you if you get sick? It’s scary for a lot of peo­ple,” said John Louis Cabral III, a ship­yard work­er and Local S6 member.

Cabral, 34, couldn’t afford to stay home long: He was hired last year and had lit­tle accrued paid time off. With three kids to sup­port and no access to pan­dem­ic-relat­ed unem­ploy­ment ben­e­fits since he wasn’t fur­loughed, he went back to the yard.

With employ­ee atten­dance way below nor­mal for weeks, BIW fell fur­ther behind on pro­duc­tion of Navy guid­ed-mis­sile destroy­ers. As part of nego­ti­a­tions with Local S6 for a new three-year con­tract, the com­pa­ny pro­posed changes allow­ing it to hire nonunion sub­con­trac­tors more quick­ly. That and oth­er pro­posed changes to senior­i­ty and work rules in the company’s last, best, and final offer” on June 13 did not go over well with Local S6.

It’s a pow­er strug­gle in the yard right now, and that’s facts,” said Cabral, who helps man­age inven­to­ry at the shipyard.

On June 22, 87% of Local S6 mem­bers vot­ed in favor of strik­ing, even though they’d lose com­pa­ny-paid health insur­ance dur­ing a pan­dem­ic. Fed­er­al medi­a­tors were brought in to restart nego­ti­a­tions in July, around the same time BIW laid off mem­bers of anoth­er union local and brought in sub­con­trac­tors from out of state to avoid falling fur­ther behind on production.

We’re all stand­ing as one because we don’t want sub­con­tract­ing in here,” Chad Bam­ford, a 25-year-old crane rig­ger who’s worked at BIW since 2017, said on the pick­et line Fri­day. They’re try­ing to sub­con­tract out our work. We don’t want out­siders. Give us more over­time. We build the best ships in the world.”

The com­pa­ny has said it nev­er want­ed to per­ma­nent­ly out­source work away from the union through sub­con­trac­tors. We seek only effi­cient access to all avail­able resources to improve our abil­i­ty to deliv­er to the US Navy on time,” BIW Pres­i­dent Dirk Lesko wrote
in June. The ship­yard was six months behind sched­ule at the start of the strike.

Both Bam­ford and Cabral blame pro­duc­tion delays on both the pan­dem­ic and mis­man­age­ment. A BIW spokesper­son did not respond to a request for comment.

Union vic­to­ry in hand?

After weeks of meet­ings that yield­ed lit­tle, union and BIW nego­tia­tors broke through to an agree­ment Fri­day, and it looks like the union got every­thing it wanted.

In a ten­ta­tive agree­ment announced Sat­ur­day, Local S6 lead­ers trum­pet­ed the reten­tion of sta­tus quo con­tract lan­guage on sub­con­trac­tors and senior­i­ty and work rules. The agree­ment also retains 3% annu­al rais­es for work­ers. A tem­po­rary catchup phase” will allow expand­ed sub­con­tract­ing through the end of this year, and a joint union-com­pa­ny com­mit­tee will begin meet­ing week­ly to ensure sched­ule gains.

The deal, unan­i­mous­ly approved by the union nego­ti­at­ing com­mit­tee, pre­serves our sub­con­tract­ing process, pro­tects senior­i­ty pro­vi­sions and calls for a col­lab­o­ra­tive effort to get back on sched­ule,” Local S6 leader Jay Wadleigh told the Asso­ci­at­ed Press Sat­ur­day. The agree­ment also includes health­care ben­e­fit gains.

We are pleased to have reached agree­ment with our union part­ners and look for­ward to get­ting back to the job of build­ing ships for the U.S. Navy,” Phebe Novakovic, chair­man and CEO of Gen­er­al Dynam­ics, said in a state­ment the same day.

Local S6 mem­bers will vote to rat­i­fy the pro­posed con­tract online and via phone lat­er this month. If it’s approved — which both Cabral and Bam­ford believe is like­ly — the lack of con­ces­sions will stand in con­trast to the last con­tract. Back in 2015, work­ers nar­row­ly vot­ed to give up sched­uled rais­es in favor of one-time bonus­es to pro­tect jobs and help BIW win a new U.S. Coast Guard con­tract (though the com­pa­ny end­ed up los­ing that con­tract to a competitor).

Gen­er­al Dynam­ics, one of the largest defense con­trac­tors in the coun­try, made $3.5 bil­lion in prof­its last year. In 2018, tax cuts backed by the Trump admin­is­tra­tion helped cut the For­tune 500 company’s effec­tive tax rate almost in half, accord­ing to Labor Notes. That same year, the Maine leg­is­la­ture hand­ed BIW a $45 mil­lion tax break.

Bam­ford said he knows some peo­ple don’t agree with unions — but the strike has only deep­ened his pride in Local S6 and what it can achieve. The ten­ta­tive agree­ment, he said, sounds like a big win.”

Until you’ve been a part of a union and you have 4,300 peo­ple stand­ing with you as one for one cause, it’s a feel­ing you can’t describe,” Bam­ford said. It makes you proud to be with it.”

Cabral agrees: Sol­i­dar­i­ty is awe­some. The strike has built camaraderie.”