Electric Boat has been awarded a $12.4 billion contract to build two new Virginia-class submarines.
It’s money that was authorized in the defense budget for fiscal year 2024.
The Department of Defense also said part of the award will be invested in improvements at the Groton shipyard to help boost productivity and support the workforce, including funding wage hikes.
“Over the past two years, we successfully worked with the Navy, Congress and the administration to secure funds that enable us to increase wages for the nuclear-powered vessel workforce and allow for significant additional investments in capacity, shipyard processes and systems,” said Mark Rayha, president of General Dynamics Electric Boat. “This contract modification validates the unique and important role submarines and submarine shipbuilders play in our national defense.”
The news was also welcomed by Rep. Joe Courtney (D-CT2) who is the ranking member of the House Seapower Subcommittee. He called the investment in higher wages a “welcomed development.”
“The ability of the submarine industrial base to successfully execute production of Congress’ submarine building plans depends on growing a new generation of shipbuilders,” he said. “I am confident that Electric Boat’s record hiring – 5,300 in 2023, 4,100 in 2024, and another 3,000 projected this year – along with record investments to strengthen the submarine supply chain, will allow Groton’s talented shipbuilders to meet the demand signal from Congress and the Navy.”
The contract announcement comes as the yard’s MDA union continues to threaten a strike over wages and pension rights for marine drafters at Electric Boat.
Workers have already authorized a strike, and union leaders said this week that a strike date may be announced as soon as Thursday.
