By: Health Insurance
Submitted: 2009-12-01 22:16:51 | Word Count: 424
ACONSTRUCTIVE negotiation process between Northrop Grumman Shipbuilding and the unions representing most of its workers has resulted in a proposed contract extension with good terms during tough economic times.
Considering that the last contract negotiations in 2007 led to a month-long strike, both labor and management are to be commended for working out new terms without apparent rancor.
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Of 12,000 workers in the Pascagoula shipyard, about one-fourth commute from Alabama. Two-thirds of the workforce is unionized. With half a dozen unions involved, any contract negotiations are going to be complex, and any strikes hurt workers and local economies in both Mississippi and Alabama. The proposal includes modest hourly increases in each of the next two years, with the first of the wage increases taking effect in January, two months before the current contract expires.
In the current recession, many businesses along the Gulf Coast have laid off workers or reduced salaries.
The best part of the deal for Northrop Grumman workers may well be that their health insurance premiums won't go up for two years. The rising cost of health care has been passed along to employees at many other companies.
Also, workers will receive $1,000 bonuses payable on Dec. 17 if the contract is ratified.
The unions have endorsed the new contract, meaning Northrop Grumman workers will be encouraged to vote for it — and they should.
In a meeting last week with the Press-Register editorial board, Northrop Grumman Shipbuilding president Michael Petters spoke of the need for good relations between management and labor.
"Everywhere I go, I want to have a functional relationship with the labor piece of our business because it's so critical to what we do," he said.
Northrop Grumman's operations are vital not just to the regional economy, but to national security. Its Gulf Coast yards are expected to christen five ships in 2010, four of which will be at the Pascagoula yard.
In addition, the company is in partnership with the Mississippi state government and Mississippi Gulf Coast Community College on a maritime academy that will be constructed to provide trained workers for the entire Gulf Coast.
A smooth contract negotiation and ratification process will keep all the good work going.
