BIW workers prepare for tough times ahead

BATH – After the confetti is swept up and dignitaries shuttled away following the Bainbridge christening, Bath Iron Works faces an uncertain future in which such celebrations may become less frequent.

The end of construction of the current class of destroyers like the Bainbridge and the start of the next-generation DD(X) leaves a workload gap that’s expected to cause job cuts under the shipyard’s best-case scenario.

Problems could intensify if the production timetable for the DD(X), which is still in the design process, is further delayed.

The shipyard’s 6,400 workers know tough times lie ahead, but no one is talking openly about how many jobs could be eliminated.

“Depending on the size of the gap, certainly it’s going to dramatically affect the shipyard,” said Mike Keenan, president of the Machinist Union’s Local S-6, which represents 4,100 Bath shipbuilders.

All acknowledge the presence of a storm brewing. The only question is the intensity of the gale when it hits.

The anticipated workload gap arises when the shipyard shifts production to the next generation of destroyers four years down the road. There’s also talk of budget cuts in Washington that could exacerbate the problem.

To top it off, the Navy isn’t even sure of its future needs as it adjusts to an elusive enemy in the global war on terrorism.

All that’s left for the shipyard to do is to batten down the hatches, become as efficient as possible, and prepare for stormy weather.

Shipyard President Dugan Shipway is focusing on controlling the one thing he can: cutting costs and boosting efficiency so the shipyard can ride out the storm and be prepared to take advantage of new contracts in the future.

“We will structure ourselves in whatever way it takes to survive,” said Dirk Lesko, director strategic planning and communications. “Bath Iron Works has been here building ships for 120 years and we plan to continue to do that.”

In a 2002 contract, Bath Iron Works projected that its cost for building an Arleigh Burke-class destroyer was $36 million more than its competitor, Northrop Grumman’s Ingalls shipyard in Pascagoula, Miss.

Bath is already making progress in cutting costs thanks to continuing manufacturing refinements and nearly $300 million in shipyard improvements designed to make the shipbuilder faster and more efficient, Lesko said.

But none of that brightens the short-term picture.

Although Bath Iron Works has a backlog of 11 ships, production on the last of those destroyers will begin winding down as the DD(X) program is just getting under way. Ingalls is the lead shipyard on DD(X) and begins construction on the first one in 2007; Bath begins construction in 2009.

Even then, the shipyard is expected to be building one DD(X) per year, which is less work than today’s levels, officials say.

One program that had the potential to bridge the gap was construction of small warships called corvettes for Israel, but the Israeli navy has decided against building the ships in the near future.

Several other programs are in the works, including smaller ships designed to maneuver in shallow waters. Bath has partnered with an Alabama shipyard on that project, but production is several years away.