THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, October 18, 1995 TAG: 9510180399
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Medium: 52 lines
Union workers at Norshipco approved a two-year contract extension that will boost their wages by 3 percent in two years.
In voting at the Norfolk shipyard Tuesday, members of the International Brotherhood of Boilermakers Local 684 OK'd the agreement by a 2-to-1 margin, union officials said.
The agreement will cover 2,100 blue-collar workers at Norshipco, the largest private shipyard in South Hampton Roads. The current contract was scheduled to expire Oct. 31. This is the second extension to a contract dating to 1991.
``We're very pleased,'' said John W. Humphreys, Norshipco vice president of administration. ``The environment we're dealing in is very competitive and it's good to know that management and labor are working together for the betterment of all.''
Norshipco officials say they must keep a check on overhead costs, including labor, to remain competitive. Shipyards in the region, long dependent on repairing and overhauling Navy ships, have been scrapping for work since the fleet cutbacks began after the end of the Cold War.
Norshipco opened its books to the union to ease contract negotiations, said Gary Daniel, president of the local.
The shipyard's last profitable year was 1992, Daniel said. ``They've been selling assets to pay their bills,'' he said.
Daniel said he was more concerned about the company surviving to employ the workers than about getting them a big raise. ``If you saw our company's financial records . . . you might agree that there's no sense trying to get blood from a turnip,'' he said.
The agreement gives workers a 1 percent raise on Nov. 1, the first day of the extension. A second, 2 percent raise will come a year later.
Blue-collar wages at the yard range from $8.50 to $13.37 an hour. In the last contract extension in 1993, workers got two 1 percent raises.
Other benefits the workers will under the contract include:
The day after Thanksgiving off.
A boost in allowed contributions to $9,200 a year, the maximum allowed by law, to their 401(k) retirement plans. Contributions had been capped at 12 percent of income.
Vacation time offered in two-hour segments as long as the employee works six hours the day it's taken, which will make it easier to go to the doctor or make other appointments, Daniel said.
Complete vacations for employees working at least 2,016 hours a year. Before, workers lost vacation if they missed more than 600 hours in a year. by CNB