Northrop May Be Hit by Strike

Northrop Grumman Corp. may face a strike at its Newport News, Va., shipyard if a new labor contract is not reached by June 6, the expiration date of the current contract, the union said Friday.

Negotiations with the United Steelworkers of America, the first since Century City-based Northrop acquired the Newport News shipyard for $2.6 billion in 2002, have been going on for four weeks with little progress, said Alton Glass, president of union Local 8888.

A walkout would be the first since 1999 at the shipyard, the only builder of aircraft carriers for the Navy. In that year, workers went on strike for four months before the current five-year contract was adopted.

The union, which represents all 8,500 workers in the talks, will hold a meeting May 23 to update members on the talks and, if necessary, to vote whether to authorize a strike.

“We are currently involved in contract negotiations with the United Steelworkers, and we do not believe it is in the best interests of anyone to negotiate in the press in any way,” shipyard spokeswoman Jerri Fuller said. She declined to comment further.

The average hourly wage for a first-class mechanic at Newport News is about $16.50, compared with $19.72 at the Norfolk Naval Shipyard, according to data provided by the union. They do not include the value of benefits.

Northrop shares fell 17 cents Friday to $99.70 on the New York Stock Exchange.