2001 - Press Release Archives
again meet incentive goal, will receive $500 checks
EB awarded $42M
contract modification for submarine work
EB pledge a record $1.25M to regional charities
sick time is down 38 percent over seven years
MDA-UAW reach tentative labor pact
MTC agree to safety incentive
EB gets $17.2M
Navy contract for submarine work
Navy awards EB
engineering work worth up to $80M over five years
$8.3M contract to perform nuclear work for U.S. Navy
begin early contract talks
raise $140,000 for disaster relief
named to Innovation post
Cawley are named to Operations positions
receives $54M contract for Virginia-class design work
Boat receives $13.2M contract for submarine support work
EB employees again meet incentive
goal, will receive $500 checks
Electric Boat employees will receive $500 incentive checks (minus applicable withholdings) this Friday as a result of the company reaching its Earned Hours goal for 2001.
"Everyone's efforts throughout the year were the key to our strong financial performance," said President Mike Toner. "The Earned Hours program will allow our employees to reap the rewards of their hard work and dedication to the customer."
The Earned Hours program was initiated last year to give employees a personal and financial stake in the company's overall performance, and management decided to offer it again this year after a successful 2000.
"Our members are happy to have contributed to another good year at Electric Boat," said MDA-UAW President Mel Olsson. "They never lost sight of the goal."
"The Earned Hours program is a great incentive," said MTC President
Ken DelaCruz. "For the second year in a row, it has allowed our members
to share in the company's good fortune - which they as employees contributed
EB awarded $42M contract
modification for submarine work
The U.S. Navy has awarded Electric Boat a $42.3 million contract modification for nuclear submarine work. The award is a continuation of a contract awarded in May 1999 to provide design, engineering, material and logistics support for the Trident program, the Trident UK program, the two operational Seawolf-class submarines, NR-1, and efforts supporting Los Angeles-class ships. It also supports work at Puget Sound Naval Shipyard in Bangor, Wash., to backfit older Tridents to accommodate D-5 missiles, and D-5 pre-ERP (Extended Refit Periods) work at Kings Bay, Ga.
Eighty-two percent of the work will be performed at Groton; 13 percent at Newport, R.I.; 2 percent at Puget Sound; 2 percent at Kings Bay; and 1 percent at Quonset Point, R.I. The contract work is expected to be completed by September 2002.
Employees, EB pledge a record $1.25M
to regional charities
Electric Boat employees and the company have combined to pledge a record total of $1.25 million for regional health and human-services agencies.
The amount pledged during the EB Employees Community Service fall campaign represents an increase of $120,000 over what was collected in 2001.
Of the total raised, $1 million will be donated to the United Way of Southeastern Connecticut. This includes a $275,000 contribution from Electric Boat. The remainder of the $1.25 million will be allocated to other United Way and charitable organizations where EB employees live.
The leaders of this year's Community Services drive - Metal Trades Council President Ken DelaCruz, Marine Draftsmen's Association-UAW President Mel Olsson and EB Vice President Bob Nardone - credited the success of the effort to the campaign volunteers from the MTC, MDA-UAW and salaried ranks. This year's participation rate hit 84 percent. In addition, EB membership in United Way's Spinnaker Club - givers of $1,000 or more - increased by 27 to 111 employees.
"This is an amazing accomplishment," said EB President Mike
Toner. "It's a real tribute to our employees, who pull together year
after year to help the people in our communities who need it most. I want
to thank each employee who made this year's campaign such an outstanding
Salaried sick time is down 38 percent
over seven years
From 1994 through 2001, Electric Boat salaried employees have reduced their use of paid sick time by 38 percent.
During the most recent period - from Dec. 1, 2000 through Oct. 31, 2001 - 39 percent of salaried employees used no sick time. "While this year's overall sick-time usage reflects an increase over last year, the fact that 60 percent of our salaried workforce used less than 1 percent sick time is a noteworthy accomplishment," said Bob Nardone, VP - HR & Administration. "It also means we can maintain our high level of sick-time benefits for those who really need them, while reducing overhead costs."
In recognition of these accomplishments, the company will award $150,000:
· All salaried employees with 0 percent sick time between Dec. 1, 2000, and Oct. 31, 2001, will receive a $25 credit at the Fairwater Store. These employees will also be eligible to win up to $1,000 in a cash raffle (seventy-five $1,000 winners and fifty $500 winners will be selected).
· Employees with more than 0 percent but 1 percent or less will be entered in the drawing for fifty $500 prizes.
· Employees with 0 percent sick time for the two-year or longer period ending Oct. 31 will participate in an additional drawing for twenty $2,500 prizes.
· In addition, all groups will be entered in a drawing for 25 parking spaces, good for one year (Groton employees only; current pass holders are not eligible).
If you have any questions regarding your eligibility for the drawings, you must contact Hank McNeil, ext. 3-3717, no later than Nov. 30.
The drawings will be held in the Technology Center cafeteria at noon Dec. 7.
Electric Boat, MDA-UAW
reach tentative labor pact
Electric Boat and the Marine Draftsmen's Association-UAW, Local 571, have reached a tentative agreement on a 54-month labor contract that extends through July 2006.
The proposed agreement contains a $1,000 ratification bonus to be paid in January 2002; 3.5 percent general wage increases in August 2002 and November 2003; and 4 percent GWIs in November 2004 and November 2005. Additionally, the new agreement provides a pension increase of $6, and maintains comprehensive health-care coverage.
The full terms of the agreement will be communicated to bargaining unit members at 10 a.m. Saturday at Ocean Beach in New London.
A ratification vote is scheduled for Wednesday, Nov. 14.
"Our negotiating team and the executive council have unanimously endorsed ratification of this agreement," said MDA-UAW President Mel Olsson. "Under the terms of the proposed contract, the union and the company technology committee will play a more active role with increased influence in process decisions."
Bob Nardone, VP-HR, described the proposed package as a win-win agreement.
"We believe it benefits both the company and the bargaining unit
Electric Boat, MTC agree to safety
Under the terms of an agreement reached between Electric Boat and the
Metal Trades Council, bargaining-unit employees will receive cash payments
of at least $100 if certain safety goals are achieved for the
The goal for the year is to attain an Operations lost-workday injury rate (LWIR) of 5.1 percent. If this goal is reached, each eligible employee will receive $100. For each 0.5 percent reduction to the LWIR, each employee will receive an additional $50. For example, if the LWIR rate is 4.6 percent, the total award for each individual will be $150. If the LWIR is 4.1 percent, the award will be $200, and so on.
To be eligible for the award, bargaining-unit employees must work a minimum of 1,000 hours (excluding absences) during the 2001 calendar year and must be on the payroll as of Dec. 1, 2001. Bargaining-unit employees who retired before Dec. 1 and worked at least eight hours during the year will also be eligible to receive the safety recognition award.
The payments will be made on or before Jan. 18, 2002.
This agreement reinforces our commitment to making the shipyard a safer place to work, said Bob Nardone, VP HR & Administration. It also enables our shipyard employees to tangibly share in the success of the company.
We want every one of our members to go home to their families in the same condition they came to work, said MTC President Ken DelaCruz. Im glad we were able to work out an agreement that rewards our members for their safety performance while saving the company money. Its a win-win situation.
EB gets $17.2M Navy contract for submarine
The U.S. Navy has awarded Electric Boat a $17.2 million contract modification to provide design agent, planning yard, and engineering and technical support for various nuclear submarines.
Under the terms of the one-year award, Electric Boat will perform design agent services, update ship drawings and related data, and provide planning, scheduling and technical support for overhauls. Work will be performed on Seawolf-class and Virginia-class submarines, as well as the proposed SSGN, the designation given to Ohio-class submarines converted to conventional-strike and special-warfare platforms.
Navy awards EB
engineering work worth up to $80M over five years
The U.S. Navy has awarded Electric Boat engineering and lifecycle support work worth $13.4 million. The award includes options exercisable by the Navy for four additional years for a potential contract value of up to $79.8 million.
The initial $13.4 million award for FY 2002 is a contract follow-on for
reactor-plant planning yard work. This work will encompass engineering
services for lifecycle support, maintenance and modernization of the reactor
plants and selected propulsion-plant systems of Los Angeles, Trident and
Seawolf-class submarines, and the nuclear research submarine NR-1. Additionally,
Electric Boat will provide similar services for all systems on the Navy's
moored training ships in Charleston, S.C.
EB receives $8.3M contract
to perform nuclear work for U.S. Navy
The U.S. Navy has exercised a one-year, $8.3 million contract option under which Electric Boat will manage and support nuclear-maintenance work for submarines homeported at Submarine Base New London. Electric Boat is a wholly owned subsidiary of General Dynamics.
Under the terms of the contract option, Electric Boat will continue to operate the Nuclear Regional Maintenance Department (NRMD) at the submarine base. The company will provide project-management, planning, training and radiological-control services to support maintenance, modernization and repairs of operational submarines. A core group of 20 Electric Boat employees are assigned to the NRMD, with surge groups of up to 60 shipyard employees for short periods.
General Dynamics, headquartered in Falls Church, Va., employs approximately
52,000 people worldwide and anticipates 2001 sales of approximately $12
billion. The company has leading market positions in business aviation,
information systems, shipbuilding and marine systems, and land and amphibious
EB, MDA-UAW begin early contract
Electric Boat's senior management team and the elected officials of the Marine Draftsmen's Assocation-United Auto Workers, Local 571, announced today that they are entering into early contract negotiations. These early negotiations are aimed at reaching a new labor agreement well in advance of the current contract's July 26, 2002, expiration date.
To prepare for the talks, a joint team of management and labor leaders completed an Interest-Based Bargaining training course last week. The training was offered and run by the Federal Mediation and Conciliation Service.
Why early talks?
According to Innovation VP Millard Firebaugh, "We believe that we can successfully complete this process now and secure a fair and mutually beneficial contract before the holiday break. Then we can turn our full attention toward meeting our customers' needs." Firebaugh said that Innovation management, from mid-management to supervision, will lend their full cooperation and support to this activity.
"From our perspective, we feel that we have a productive and constructive ongoing relationship with the company at this time," said MDA-UAW President Mel Olsson. "By focusing on negotiations now, we can leverage that relationship to help us secure a high-quality contract. Our goal is an agreement that meets the needs of our members and their families, while supporting the business and our nation's defense."
While traditional bargaining typically relies on the relative power of the negotiating parties to shape an agreement, Interest-Based Bargaining uses a joint approach and a consensus model. The object is to reach an agreement that is fair and beneficial to all concerned parties. Using a process similar to the one employed in 1999, the negotiators will assemble and empower small joint Resource Teams to analyze issues and options. Once finished, each team will present its findings and recommendations to the entire negotiating team.
"We've had some success with similar alternative bargaining approaches in the past," said HR VP Bob Nardone. "This time around, we believe that the timing is right, the relationship is solid, and the team is well prepared for success. As far as we're concerned, we're ready to go."
As in the 1999 talks, the negotiating team intends to issue frequent
Joint Negotiations Bulletins to keep affected employees apprised of the
EB, employees raise
$140,000 for disaster relief
Electric Boat employees and the company have combined to donate a total of $140,413 to benefit the families of the Sept. 11 terror attack victims.
The EB Employees Community Services Associations at Groton and Quonset Point, along with other company sites, solicited more than $70,000 from employees. Working with the Community Services Association in the drive were the Metal Trades Council, Marine Draftsmen's Association and the Electric Boat Athletic Club. Electric Boat matched the amount raised.
Of the total, $80,000 was allocated to the NYC Central Labor Council Disaster Fund; $31,000 to the Community Services Agency in Washington, D.C.; and $27,000 to the New London chapter of the American Red Cross. Smaller amounts were directed to other agencies at the request of employees.
"Electric Boat employees have a long tradition of coming through to help when it counts the most," said EB President Mike Toner. "They did that and more in response to the disasters. I'm proud of their spirit and generosity."
"The response of the Electric Boat workers to the Sept. 11 tragedy was overwhelming," said MTC President Ken DelaCruz. "Employees from all walks of life gave generously to help the victims and families of this despicable attack. In addition to our financial support, our thoughts and prayers are with them. I want to thank our employees for their generosity and compassion."
MDA-UAW President Mel Olsson expressed pride in the response of his membership. "Not only did they help organize the collection and generously donate at the gate, they also voted to donate $5,000 from their treasury at a recent membership meeting. There were quite a few muted smiles when one member suggested adding it to the gate collection so that Mike Toner would match it."
to Innovation post
Kenneth Blomstedt has been appointed director of mechanical design and engineering, succeeding George Pina Jr., who recently retired.
Blomstedt has been an Electric Boat employee since 1979, holding positions of increasing responsibility. Most recently he served as manager of mechanical engineering and design for the Multi-Mission Platform program. Previously, he was manager of mechanical engineering and design for the Virginia program.
In his new job, Blomstedt will be responsible for the engineering and design of all mechanical equipment used on submarines.
Blomstedt earned a bachelor's degree in mechanical engineering from the University of Lowell in Lowell, Mass., in 1979.
Alu, Cawley are named
to Operations positions
Michael Alu has been appointed director of Operations and Facilities, succeeding Lee Morse, who is retiring. Succeeding Alu as director of Off-Site Operations is Pete Cawley. Both men report to Operations Vice President John Casey.
Alu has been with Electric Boat for more than 30 years and has extensive experience in ships management and off-site operations. In his new position, he will be responsible for facilities management and engineering, as well as the technical, cost and schedule performance of the shipyard trades engaged in pre- and post-launch activity.
Cawley, who most recently was site manager at the Kesselring Site Field Office, is a 36-year EB veteran with expertise in radiological controls and nuclear-project management. He will now be EB's senior representative at the Groton submarine base, and will be responsible for off-site availabilities, including those at Portsmouth Naval Shipyard.
"Since joining the company in 1965, Lee has progressed through a series of increasingly important positions, including management of the Charleston, S.C., site and Quonset Point," Casey said of Morse, whose last day is July 31. "His technical knowledge and creative approach to complex problems produced many successes for the company and him personally over the years," he said.
"Mike and Pete bring to bear a wealth of talent and experience in our core shipbuilding business," Casey continued. "I know we can count on them to help us maintain our leadership position in the industry."
receives $54M contract for Virginia-class design work
The U.S. Navy has awarded Electric Boat a $54 million contract modification to complete component development work and evaluate technology-insertion opportunities relating to the Virginia-class submarine program.
The contract modification provides funding for ongoing design-yard services in support of the baseline Virginia (SSN774) design, and technology insertion and upgrades for the follow-on ships of the class. The modification also provides for design-yard support for construction of the planned 30 Virginia-class ships.
These submarines will provide the U.S. Navy with the capabilities it
requires to maintain the nation's undersea superiority well into the 21st
century. Currently, Electric Boat and its construction teammate, Newport
News Shipbuilding, are working on a $4.2 billion contract to build the
first four ships of the class. Electric Boat will deliver the first ship,
Virginia, in 2004.
Electric Boat has named John F. Dugan Shipway vice president of submarine full service support. In this newly created position, he will direct Electric Boats efforts to expand its submarine maintenance, repair and life-cycle support business.
Shipway, who retired from the U.S. Navy as a rear admiral after 35 years of service, joined Electric Boat in July 2000 as special assistant to the president. He will continue to report directly to President Michael W. Toner.
Dugans appointment to this new position reflects our commitment to the maintenance and life-cycle support segment of our business, said Toner. This work is vital to the future of Electric Boat because it enables us to retain our critical shipyard skills and capabilities in the current low-rate submarine production environment.
Before retiring from the Navy in 2000, Shipway served in a succession of high-level posts. These included director of Strategic Systems Programs; commander of the Naval Undersea Warfare Center; deputy commander for submarines at Naval Sea Systems Command; program executive officer for Submarines; and direct reporting program manager for the Seawolf Program. He earned a bachelors degree in chemical engineering and a masters degree in engineering, both from the University of Louisville.
The U.S. Navy has awarded General Dynamics Electric Boat a $42.2 million contract modification for Virginia-class submarine lead-yard services.
Under the terms of the contract, Electric Boat will maintain, update and support the Virginia-class design and related drawings and data for each submarine, including technology insertion, throughout its construction and Post Shakedown Availability phases. EB will also provide all engineering and related services for maintenance and support of Virginia-class ship specifications.
The work is expected to be completed by May 2002.
Electric Boat receives $13.2M contract for
submarine support work
Electric Boat has been awarded a $13.2 million contract modification to provide design, engineering and technical-support services for U.S. Navy nuclear submarines.
Specifically, Electric Boat will provide planning yard services for Trident submarines and NR-1, the Navy's nuclear-powered research submarine. The company will also perform work supporting design and configuration changes for Trident and Seawolf submarines, and facilities at the Navy's Kings Bay, Ga., submarine base.
Eighty-nine percent of the work will be performed at Groton, 6 percent at Kings Bay and 5 percent at Quonset Point, R.I.