Negotiations between union shipyard workers and Vigor, a ship building and repair company, are heating up again.
Nine unions represent around 800 workers at Vigor’s Portland and Seattle shipyards through the AFL-CIO Metal Trades Department.
Vigor has offered increases of 90 cents in year one, 95 cents in year two, and $1 in year three, which averages around 1.9% each year.
The last contract, approved in 2022, gave annual raises of $1.25, $1.30, and $1.40, or around 2.8% each year — significantly higher than the current offer. That contract was approved with 70% in favor, after workers had already voted down an earlier contract proposal and twice voted to authorize a strike.
Members haven’t taken a strike authorization vote in this round of bargaining. But union representatives say bargaining isn’t progressing well.
Machinists District 160 Directing Business Representative Steve Miller said he was “severely concerned” given the duration of negotiations, the pace bargaining has moved at, and Vigor’s offers.
“Unless the company shows some movement, it’s going to be up to the employees to see what action they’re willing to take,” Miller said.
Negotiations started in October. The contract expired Nov. 30, 2024, but the Metal Trades Councils and Vigor agreed to a contract extension.
Vigor has proposed moving to formal mediation, but the unions have declined.
“With the economic offers on the table, we are not done bargaining,” the Metal Trades Council wrote to members on Jan. 10.
Under the Vigor contract, the total compensation is the same across unions, but each union divides the package differently between wages and benefits. Newer journeymen represented by Machinists Local 63 at Vigor’s Swan Island shipyard, for example, are paid $37.74 per hour, but benefits bring the total package up to $49.76 per hour. The raises offered by Vigor apply to the full package, so a 90-cent increase would not mean a 90-cent wage increase.
Unions represented by the metal trades councils include Boilermakers, IBEW, Painters, Laborers, Sheet Metal, Pipefitters, Machinists, Teamsters, and Operating Engineers.
Labor representatives say Vigor’s employment numbers fluctuate frequently.
Darrin Boyce, business representative for Sheet Metal Local 16, said the inconsistent work is a huge challenge.
“When you already have work that’s not super consistent … on top of the wages are not keeping up with inflation and the cost of living, it becomes more and more challenging to retain a quality workforce,” Boyce said.
When Vigor is getting more ship repair work, the two shipyards combined have around 1,000 metal trades workers. Portland Metal Trades Council Vice President Scott Oldham said even higher numbers are anticipated in the coming months, as U.S. Navy ships arrive at Vigor shipyards.
Vigor was awarded three Navy contracts in recent months, with work starting around February. The largest, a $277 million contract, will cover repairs and upgrades to the USS Kidd over the next 18 months in Seattle. The Seattle shipyard will also work on the USS Giffords under a $56 million contract. Vigor won a $76 million contract for work on the USS McCain, to be completed in Portland in 2025.
