Reed Helps Increase Wages for RI Defense Workers Building State-of-the-Art Submarines for U.S. Navy
SASC Ranking Member Reed led successful effort to include money for pay raises
WASHINGTON, DC – U.S. Senator Jack Reed (D-RI) today commended General Dynamics Electric Boat (EB), the U.S. Navy, and labor leaders for working together to reach a tentative agreement that will increase wages for workers at Electric Boat’s Quonset Point facility in Rhode Island.
Last year, Reed, who was then serving as Chairman of the Senate Armed Services Committee (SASC), led passage of the $883.7 billion fiscal year 2025 National Defense Authorization Act (NDAA), which included permissive authority for wage increases for submarine workers. President Biden signed the measure into law in December 2024 and Reed, working on the Appropriations Committee, helped to include the funds in the Continuing Resolution to allow the Navy to underwrite the cost of these wage increases for shipbuilders.
On April 30, the Navy awarded EB and Newport News Shipbuilding, which is a division of Huntington Ingalls Industries, an $18.4 billion contract for new submarines and workforce development, including wage improvements.
“This is good news for the hardworking men and women who help build these world-class submarines right here in Rhode Island. They deserve a raise and fair wages that reflect the value of their outstanding work. This will also help us recruit and retain the skilled workers needed to continue building these next generation submarines at Quonset. So it is a win for these workers, the state’s economy, and national security,” said Senator Reed.
The new wage includes across the board wage increases for hourly employees at EB’s Quonset shipyard and will increase the starting rate to $22/hour.
Additionally, current shipbuilders will see wage increases that range from 2 percent to over 6 percent depending on years of service and specific trade - for example additional wage increases for trades that have been both difficult to attract/retain employees.
EB will also implement a new Pay-for-Performance model where hourly employees will be eligible for greater increases every 6 months based on a performance review.
As a result of the wage adjustments, the maximum rate for each Labor Grade will also increase.
The changes are scheduled to take effect on June 1, 2025.