BIW President: I’m hopeful there will not be a strike – WMTW Portland

Leaders of the roughly 4,400-member machinists union at Bath Iron Works are calling for a strike, but company president Dirk Lesko said today that would be a mistake."The reason we shouldn't go on strike is it helps no one. It doesn't help us meet our customer's needs. Fundamentally, any business that doesn't meet its customer's needs can't be successful," Lesko said in a rare interview with WMTW inside the shipyard.The companys one customer is the U.S. Navy, for two kinds of destroyers that carry a price tag close to $1 billion and take years to make. BIW is a subsidiary of General Dynamics, one of the nations biggest defense contractors.The Local S6 chapter of the International Association of Machinists and Aerospace Workers commences voting on the proposed three-year contract online or over the phone at midnight Friday, and the balloting continues through noon Sunday.Im hopeful there will not be a strike, Lesko said. I believe the offer weve provided is fair. I have a lot of confidence in our workforce to exercise good judgment, to think for themselves, and to read the offer.The offer includes 3% annual raises for manufacturing workers and a $1,200 ratification bonus. But union leaders decried changes in rules affecting seniority and subcontractors. They said the new contract could force seasoned workers with certain skills to switch to new jobs and could lead to an increase in nonunion workers being brought into the shipyard.We are trying to use subcontractors as a means of supplementing the workforce we have. Weve been unable to hire enough people fast enough, Lesko said. Our preference is to use our own labor, is to have our own workforce, and thats why last year we hired and trained almost 2,000 people. Wed like to do at least 1,000 more this year.As a result of new hires and what Lesko described as an unprecedented number of retirements, 70% of BIWs manufacturing workforce has been on the jobs two years or less.Responding to the claim that the contract, hypothetically, could lead to an electrician becoming a pipefitter, Lesko said, It simply isnt true.He added, When you think about seniority, you think about seniority as it relates to layoffs, rehiring, vacation, accrual shift assignment, those things dont change in this contract. What does change is our ability to move people around to where the work is between facilities, if necessary, and that is a fundamental requirement of any business to match the people you have to do the work to the work.Union handouts refer to BIWs offer as a garbage contract and urged members, Dont be fooled. One flyer called Lesko deceitful, dishonest, despicable.Lesko said, I dont think anyone wants to be called a deceitful liar, but I am very, very confident that Im telling the truth. I have command of the facts. I understand what we need to improve, and I believe our workforce does as well.BIW production is 9 months behind its navy contract schedule, a pace that preceded a sharp attendance drop during the coronavirus outbreak. The company reported two confirmed cases in March and one in May.Lesko said, All of those people, and all of the people who were in contact with them are back at work at this point.BIW instituted social distancing policies and requires employees to wear masks inside the shipyard. But Lesko resisted calls for the company to slow down or stop operations at Maines largest congregant work site, with a total of 6,800 employees. (Nonunion workers would not be affected by a strike).We are part of the critical infrastructure industry, right? We were supposed to remain open. Our customer expected us to remain open, so our focus was how do we do that as safely as we possibly can? he said. Viewing COVID-19 purely through the lens of public health is important, but there are economic impacts to consider, there are other social impacts to consider, and for us, one of the things that it was clear up front we could never consider was closing, and that was not our decision.The company allowed employees to take unlimited unpaid leave from mid-March through early May. It was slow to approve telecommuting and didnt do so for many employees.Lesko cited the security concerns inherent with military work. You cant just take your BIW work home and use your home computer to do it.

Leaders of the roughly 4,400-member machinists union at Bath Iron Works are calling for a strike, but company president Dirk Lesko said today that would be a mistake.

"The reason we shouldn't go on strike is it helps no one. It doesn't help us meet our customer's needs. Fundamentally, any business that doesn't meet its customer's needs can't be successful," Lesko said in a rare interview with WMTW inside the shipyard.

The companys one customer is the U.S. Navy, for two kinds of destroyers that carry a price tag close to $1 billion and take years to make. BIW is a subsidiary of General Dynamics, one of the nations biggest defense contractors.

The Local S6 chapter of the International Association of Machinists and Aerospace Workers commences voting on the proposed three-year contract online or over the phone at midnight Friday, and the balloting continues through noon Sunday.

Im hopeful there will not be a strike, Lesko said. I believe the offer weve provided is fair. I have a lot of confidence in our workforce to exercise good judgment, to think for themselves, and to read the offer.

The offer includes 3% annual raises for manufacturing workers and a $1,200 ratification bonus.

But union leaders decried changes in rules affecting seniority and subcontractors. They said the new contract could force seasoned workers with certain skills to switch to new jobs and could lead to an increase in nonunion workers being brought into the shipyard.

We are trying to use subcontractors as a means of supplementing the workforce we have. Weve been unable to hire enough people fast enough, Lesko said. Our preference is to use our own labor, is to have our own workforce, and thats why last year we hired and trained almost 2,000 people. Wed like to do at least 1,000 more this year.

As a result of new hires and what Lesko described as an unprecedented number of retirements, 70% of BIWs manufacturing workforce has been on the jobs two years or less.

Responding to the claim that the contract, hypothetically, could lead to an electrician becoming a pipefitter, Lesko said, It simply isnt true.

He added, When you think about seniority, you think about seniority as it relates to layoffs, rehiring, vacation, accrual shift assignment, those things dont change in this contract. What does change is our ability to move people around to where the work is between facilities, if necessary, and that is a fundamental requirement of any business to match the people you have to do the work to the work.

Union handouts refer to BIWs offer as a garbage contract and urged members, Dont be fooled. One flyer called Lesko deceitful, dishonest, despicable.

Lesko said, I dont think anyone wants to be called a deceitful liar, but I am very, very confident that Im telling the truth. I have command of the facts. I understand what we need to improve, and I believe our workforce does as well.

BIW production is 9 months behind its navy contract schedule, a pace that preceded a sharp attendance drop during the coronavirus outbreak. The company reported two confirmed cases in March and one in May.

Lesko said, All of those people, and all of the people who were in contact with them are back at work at this point.

BIW instituted social distancing policies and requires employees to wear masks inside the shipyard. But Lesko resisted calls for the company to slow down or stop operations at Maines largest congregant work site, with a total of 6,800 employees. (Nonunion workers would not be affected by a strike).

We are part of the critical infrastructure industry, right? We were supposed to remain open. Our customer expected us to remain open, so our focus was how do we do that as safely as we possibly can? he said. Viewing COVID-19 purely through the lens of public health is important, but there are economic impacts to consider, there are other social impacts to consider, and for us, one of the things that it was clear up front we could never consider was closing, and that was not our decision.

The company allowed employees to take unlimited unpaid leave from mid-March through early May. It was slow to approve telecommuting and didnt do so for many employees.

Lesko cited the security concerns inherent with military work. You cant just take your BIW work home and use your home computer to do it.

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BIW President: I'm hopeful there will not be a strike - WMTW Portland