THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, November 11, 1995 TAG: 9511110544
SECTION: BUSINESS PAGE: D01 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Medium: 57 lines
Workers at Metro Machine Corp. have organized into a union, the Norfolk shipyard's top executive said Friday.
More than half of Metro Machine's 500 union-eligible, blue-collar workers signed cards saying they want to be represented by the International Brotherhood of Boilermakers, said Richard Goldbach, the shipyard's president.
Instead of fighting the union, Goldbach opted to accept the wishes of his workers, who own about 70 percent of Metro Machine through an employee stock-ownership plan, or ESOP.
``We recognized the Boilermakers yesterday,'' said Goldbach, who controls the ship-repair company as trustee of the ESOP and owner of the remaining 30 percent. ``I respect the opinions of the work force.''
Contract negotiations will begin soon. Officials with the Boilermakers could not be reached for comment.
Union representation of the workers could lead to increased job security, changed work rules and better pay and benefits. Higher labor costs could harm the shipyard's competitive position, however.
Metro Machine becomes the third private shipyard in Hampton Roads whose laborers are unionized. The Boilermakers represent 2,100 workers at Norshipco through its Local 684. The United Steelworkers of America represent nearly 12,000 workers at Newport News Shipbuilding. The Boilermakers also represent some employees at the Norfolk Naval Shipyard in Portsmouth.
Metro Machine exposed itself to the Boilermakers when it purchased the old Pennsylvania Shipbuilding Co. yard in Chester, Pa. It asked the Boilermakers to help it find workers for the yard, where it is overhauling five Navy ammunition ships and hopes to construct hull sections of a double-hulled tanker it has designed.
When those workers were organized by the Boilermakers last year, Metro accepted the union, Goldbach said. Metro has about 130 union workers in the Chester yard, with plans to expand to 250, he said.
Metro has freely moved employees between its Norfolk and Chester shipyards, allowing nonunion and unionized employees to mingle and work together.
Goldbach admits that he would have preferred the workers to remain nonunion. But he didn't seem too worried about it, either.
``I really have no concern because we've been working very constructively with the Boilermakers in Pennsylvania,'' he said.
Still, the ship-repair market has become extremely competitive in recent years as Navy downsizing has reduced the number of jobs available to shipyards. If a new contract with Metro's workers boosts the yard's labor costs, Metro could find itself in a difficult position.
``I don't think it has to'' harm the shipyard's competitive position, Goldbach said. ``I don't think the work force wants it to. I don't think the Boilermakers want it to. And I certainly don't want it to.'' by CNB