Workers Reject 3rd Contract Offer by Nassco

For the third time in nine months, union workers at the National Steel & Shipbuilding Co. overwhelmingly rejected a five-year contract offer on Saturday, prompting management to refuse to negotiate further and labor officials to raise the possibility of a job action soon.

“Clearly the company did everything it could to try and meet the requests of the unions,” said Fred Hallett, vice president for finance at the giant shipyard. “All negotiations require compromises and the company has compromised.

“We know of no reason now to return to the negotiating table.”

Meeting Planned

Manuel Ruiz, financial secretary and treasurer of Iron Workers Local 627, said leaders of the shipyard’s seven unions will meet Monday to decide their next move now that 83.5% of the employees voted down the contract Saturday.

“I’ll tell you right now that our people are pretty strong and still waiting for the right time,” Ruiz said. “And a strike could always happen soon. A strike possibility is very strong.”

About 2,500 employees have been working without a contract since October, when union members first rejected a contract proposal. The company then imposed those contract provisions which, for some of the employees, meant wages reduced more than 50%.

The contract considered Saturday included a wage boost of 45 cents an hour and improvements to the pension package, such as retirement benefits at the age of 62 rather than 65. The offer also included a profit-sharing plan in which one-third of Nassco’s pretax profits would be distributed to employees, who could draw up to a maximum of 20% of their salaries.

“Sure, that’s a benefit, if the company’s making any profits,” Ruiz conceded. “But right now they’re losing their butts.”

Loss Expected

It was announced last month that Nassco expects a pretax operating loss as high as $20 million for the second quarter of 1988, primarily due to cost overruns on Navy repair contracts.

The loss was linked to overruns on overhaul work for three Navy destroyers, each carrying a contract valued at about $30 million.

Ruiz said blue-collar workers were also concerned about other provisions in the contract that call for the hiring of more on-the-job helpers and trainers that union officials fear will be recruited to take over senior jobs at lower pay.

“That would be very damaging to our people,” he said.

Safety Concerns

In addition, union workers remain worried about job safety.

“They said they needed to be competitive,” he said. “They say the yard is safe. But the foremen there are still trying to get as much out of us as possible.”

A year ago today, six Nassco workers were killed and six others injured when a steel basket fell on the deck of a Navy ship.

Federal officials cited the company in March for 451 instances of workplace safety violations after the Occupational Safety and Health Administration concluded a lengthy inspection of the shipyard.

The federal inspection agency said it was the largest case in California, and the company was handed more than $72,000 in penalties, which Nassco appealed.

More Workers Hurt

In May, nine more workers were injured when a steel pin sheared on one of two large hoists used to lift a propeller shaft, causing the shaft to plunge about 25 feet onto a group of workers.

In that accident, OSHA once again cited the company for allegedly failing to comply with federal safety standards. Three willful violations were leveled against the company, along with an additional $30,000 in fines.

Hallett, who has said the company is appealing the citations and fines, said Saturday that management is unsure what course the union will take in the weeks ahead. But he said Nassco is ready for any eventuality.

“We are prepared to work without a contract and work an open shop,” Hallett said.

Two Goals

He said the company pursued two objects in the contract offer rejected Saturday. “One was to get wages that are competitive so we can book work,” he said. “And two, if we are successful, to make them partners and put in the profit-sharing plan.”

But he said that management, which over the years has lost contracts to companies where workers are paid much lower wages, will not give in further to workers at Nassco’s harborfront yard.

“We have stated we have no reason to go back to the negotiating table,” he said.

Ruiz said it was that kind of posture that is hurting morale among the rank-and-file workers.

“They’re really upset with the company,” he said. “The company doesn’t think they’re worth the money they should be getting. When you take money from a person, you affect his family.

“And that works on the morale and the attitude of the yards. That affects work. We’re not getting ships out on time. The reason is because the people aren’t putting out their best effort. And you can’t blame them.”