Newport News Shipbuilding Reaches Labor Contract Agreement With United Steelworkers Local 8888

Newport News Shipbuilding Contracts

NEWPORT NEWS, Va., March 14, 2013 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) announced today that United Steelworker members at its Newport News Shipbuilding (NNS) division voted 1,914-104 in favor of a new contract. The current contract expired at midnight on March 10. The new contract took effect March 11 and will run through July 9, 2017.

"We participated in a productive process that yielded win-win results," said NNS Vice President of Human Resources and Administration Bill Bell. "This offer contains solid improvements, is fair, competitive in the industry and worthy of our great shipbuilders. Establishing this contract will help Newport News Shipbuilding meet our ongoing commitments to shipbuilders and the U.S. Navy as we continue to build the world's best ships."

Highlights of the contract include:

  • Wages: On day one, all represented employees receive 3.5 percent increases. The next 13-month increment will be a 3 percent increase, followed by a 3.5 percent increase for each of the last two 13-month periods of the contract. This translates to a 14.2 percent increase over the life of the contract, which averages to a 3.1 percent increase per year per employee.
  • Shift differential (additional pay for work shifts outside a standard day shift): Increases 25 cents to $1.50, effective immediately.
  • Pension: For employees hired on or before June 6, 2004, who retire at age 62 with 30 continuous years of service, the monthly pension increases to $1,450 starting Aug. 1. In addition, there will be a $25 per year supplement given to employees for each year of credited service after 30 years. The monthly pension increases to $1,550 beginning Aug. 1, 2015, and the yearly supplement will increase to $30 per year for each year of credited service after 30 years. For example, an employee with 35 years of credited service on Aug. 1, who qualifies for the $1,450-per-month pension, will receive $1,575 per month. NNS will continue to provide a Pension Earning Plan benefit for employees hired on or after June 7, 2004. Pension benefits are calculated by a formula based on a percentage of eligible earnings. The monthly benefit is generated by company contributions equivalent to 5 percent of total compensation.
  • Medical benefits: Maintained current premium cost-sharing for current and future years. Through some plan redesign, employee premiums were decreased for the July 2013-June 2014 plan year with an agreement on a new renewal rate methodology.
  • Paid sick or personal leave: Employees who miss less than six hours during a calendar quarter will earn eight hours of sick or personal time. Employees who have perfect attendance in a calendar quarter can earn 10 hours of sick or personal time.

About Huntington Ingalls

Huntington Ingalls Industries (HII) designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. For more than a century, HII has built more ships in more ship classes than any other U.S. naval shipbuilder at its Newport News Shipbuilding and Ingalls Shipbuilding divisions. Employing about 37,000 in Virginia, Mississippi, Louisiana and California, HII also provides a wide variety of products and services to the commercial energy industry and other government customers. For more information, visit:

Danny Hernandez
Director of Public Affairs
(202) 580-9086