GROTON, CT — A potential strike by approximately 2,500 submarine designers at General Dynamics Electric Boat has been averted following a tentative agreement between the company and the Marine Draftsmen’s Association-United Auto Workers of America, Local 571. The new five-year contract includes over 30% in wage increases and improved retirement benefits, pending ratification by union members.
Contract Highlights
The agreement, reached late Sunday, offers unprecedented wage increases exceeding 30% over the contract’s duration, along with enhanced retirement security. Union President William Louis emphasized the collaborative effort to avoid a work stoppage, stating, “We’ve been saying it all along: The company didn’t want a work stoppage, we did not want a work stoppage.”
Electric Boat, a subsidiary of General Dynamics, was recently awarded a $12.4 billion contract by the U.S. Navy for the construction of two Virginia-class submarines. This funding also encompasses improved compensation for workers, including those represented by the Marine Draftsmen’s Association.
Background and Negotiations
The union’s previous contract expired on April 4, leading to weeks of negotiations. Key issues included wage progression, healthcare costs, and retirement benefits. While the union conceded on demands such as cost-of-living adjustments and profit sharing, the final agreement reflects significant gains in overall compensation.
Electric Boat employs over 23,000 individuals across its facilities in Groton, New London, and Quonset Point, Rhode Island. The company plays a critical role in the design and construction of the U.S. Navy’s nuclear submarine fleet.
Next Steps
The tentative agreement now awaits ratification by the union’s membership. No date has been announced for the vote. Both the union and Electric Boat have expressed satisfaction with the agreement, highlighting their shared commitment to maintaining uninterrupted operations and supporting national defense initiatives
