New Bath Iron Works Deal Locks in Healthcare Costs

Bath Iron Works and the union representing nearly 4,500 shipyard employees have reached a new five-year collective bargaining agreement.

According to WGME, IAM Local S6 announced the deal over the weekend following negotiations with the company. The agreement includes a 17 percent wage increase in the first year, followed by 4 percent raises in each of the remaining four years.

The new contract also includes increased hourly premiums for employees working second and third shifts. The news station reports that healthcare costs will remain locked in for the full five years of the agreement, and the union says the deal includes stronger worker protections related to new technology, artificial intelligence and robotics.

Union leaders say they made no concessions during the negotiations.

IAM Eastern Territory General Vice President David Sullivan called the agreement historic, saying it recognizes the value Local S6 members bring to Bath Iron Works, the state of Maine and the country’s national defense. He also praised union members and the negotiating committee for standing together throughout the process, WGME said.

Bath Iron Works President, Charles F. Krugh, said the agreement was reached through good-faith negotiations and will help the company continue the production momentum it has gained while building ships for the U.S. Navy.

Krugh said the contract also demonstrates BIW’s commitment to retaining its experienced workforce and continuing its mission of building surface combatants for the Navy.

The new collective bargaining agreement takes effect Monday and will remain in place through 2031.