In Groton, Connecticut, a significant development emerged as the union representing approximately 2,500 submarine designers at Electric Boat reached a preliminary agreement on a new contract with the corporation. This new understanding successfully averted a workforce strike that was scheduled for Monday.
Workers at Electric Boat, who are integral in designing the U.S. Navy’s nuclear submarines, are represented by the Marine Draftsmen’s Association-United Auto Workers of America, Local 571. Earlier this month, the union had issued an ultimatum, threatening to commence a strike if the company failed to provide improved compensation and benefits.
On Sunday evening, members of the union’s negotiating team announced they had secured a tentative contract. This agreement includes an impressive wage increase of more than 30% over a five-year period, as well as enhancements to retirement plans. The tentative agreement will be subjected to a vote by union members, though the exact date for this voting process has yet to be determined.
“The goal from the start was to avoid a work stoppage,” stated Local 571 President William Louis in a video shared on social media. He emphasized that persistent efforts were made to reach consensus with the company, ensuring the deal was satisfactory to both parties.
Electric Boat, a division of General Dynamics based in Reston, Virginia, recently secured a significant contract exceeding $12.4 billion from the Navy. This contract pertains to the construction of two Virginia-class submarines and also provides enhanced compensation for workers, which is anticipated to include the Marine Draftsmen’s Association members.
A joint statement issued by Electric Boat and the union acknowledged the vital part MDA members play in constructing the U.S. Navy’s submarines. The company’s facilities span more than 23,000 employees, including those at the Groton shipyard, the New London engineering facilities in Connecticut, and the operations in Quonset Point, Rhode Island.
Before this agreement, Electric Boat’s previous proposal comprised a 23.3% overall wage increment throughout the term of the agreement, along with elevated benefits and retirement enhancements.