BATH – Bath Iron Works said Friday it has agreed to withdraw its controversial plan to outsource two dozen unionized custodial and maintenance jobs as part of the union’s commitment to help reduce costs at the shipyard.

BIW’s plan to subcontract the jobs to a private company in Massachusetts had become a sore point with the Machinists union, which threatened to picket the July 23 christening of the Navy destroyer Farragut.

The potential for a conflict eased last week when management put the proposal on hold for three months while discussions with the union continued.

In his announcement Friday, BIW President Dugan Shipway said the talks produced an agreement that recognized both the immediate need to improve the shipyard’s competitive position and the union’s desire to keep its bargaining unit intact.

He said in a statement that the two sides made a joint commitment to identify and implement cost-saving measures.

“We will begin with steps proposed by the union to better control consumable materials throughout the shipbuilding process,” Shipway said. “Demonstrated savings will reduce annual costs by an amount comparable to the savings associated with the janitorial subcontracting proposal.”

Mike Keenan, president of Machinists Local S6, said he was pleased by the outcome. He credited the strong stance of his membership, which rallied in opposition to the outsourcing plan and drew support from Gov. John Baldacci and allies in the Legislature.

“It is time to put this issue behind us and begin a new form of resolution,” Keenan and other union officials said in a message to shipbuilders. “The voices of the members have been heard, and Mr. Shipway has honorably accepted our offer to help BIW succeed.”

Management had described the outsourcing plan as a way to promote efficiency at a time when it faces a declining workload and is preparing to move toward construction of the Navy’s next generation of destroyer, the DD(X).

The yard’s outlook has been clouded by the Navy’s cutbacks in the DD(X) program and a proposal that could force BIW and the rival Ingalls yard in Mississippi into competition for the work.