Workers’ Wages Cut : Nassco, 7 Unions Reopen Talks
A federal mediator Monday helped reopen contract talks between the National Steel & Shipbuilding Co. and seven unions, four days after the company reduced the wages of some hourly employees by more than 50% when the talks reached an impasse.
The two sides met for about three hours and agreed to meet again Wednesday afternoon, Fred Hallett, Nassco vice president for finance, said late Monday. Peter Zschiesche, an official with the International Assn. of Machinists, said both sides had agreed to a request from the mediator not to comment on the substance of negotiations.
About 1,600 union workers at Nassco have been working without a contract since the old contract expired Sept. 30. Nassco officials had asked the workers to take sharp wage cuts to keep the company competitive with shipyards on the East and Gulf coasts.
The workers overwhelmingly rejected the proposal two weeks ago and the company unilaterally imposed the wage cuts on Friday.
Mediator Jack Bates brought the two sides together Monday, when they met for several hours at the International Brotherhood of Electrical Workers union hall. The two sides had not met in 12 days.
Hallett said experienced journeymen at the shipyard had their wages cut by an average of 17.6%. The average journeyman wage was $12.80 before it was reduced to $10.80, he added. However, Hallett acknowledged that the wages of some unskilled workers were reduced by more than 50%, from $12.05 per hour to $5.55 per hour.
Major Repair Yard
Nassco is the major union repair yard in San Diego. In recent years the company has lost several contracts to Southwest Marine, Nassco’s major non-union competitor in San Diego, and three shipyards on the East and Gulf coasts, where workers are paid much lower wages than paid to union workers at Nassco.
“If we are to remain in the new ship construction business, we have to be competitive,” Hallett said.
On Friday, the unions charged Nassco with violating federal labor laws in a complaint filed with the National Labor Relations Board.
The unions represent several types of workers at Nassco, including electricians, carpenters and painters, but the International Assn. of Machinists and the Ironworkers unions represent most of the workers.
