It really isn't tied to the government contract at all for private shipyards. The compensation structure is locked in for 3 - 5 years for the trades workers who are represented by their unions (e.g., International Brotherhood of Steelworkers, International Brotherhood of Electrical Workers, etc.). Strikes at shipyards are uncommon except when the contract is up for renegotiation and renewal.
Ya I found the article where I pulled this from.
https://www.wsj.com/economy/the-hid...orkers-1dc7abe1?mod=Searchresults_pos1&page=1
"..Jennifer Boykin, president of Newport News Shipbuilding, said the operation here loses 20% of its hourly craft workers each year to attrition — retirement, quits, dismissals—compared with 10% before the pandemic. Newport News Shipbuilding, a unit of
Huntington Ingalls Industries, and
General Dynamics’ Electric Boat unit based in Groton, Conn., jointly build attack submarines (used mainly against others ships) and ballistic missile submarines (part of the nuclear deterrent).
Labor shortages are now a national-security problem. They are a key reason numerous navy programs are behind schedule and over budget. The Navy had originally budgeted $15 billion for three Virginia-class attack subs in fiscal 2024 and 2025. The Biden administration has just asked Congress for an additional $3.4 billion, plus $1.6 billion for a ballistic missile submarine. The USS Arkansas, a Virginia-class sub, is expected to join the fleet in 2026, three years late.
The extra money is included
in a draft bill released in Congress this week intended to keep the government from running out of money Friday night...."
"....Under contracts negotiated before the pandemic inflation, salaries here start at $17 an hour, exceed $20 within a year, and top $30 for more senior craftsmen.
That once represented a significant premium to unskilled jobs in the region. Not now. Local fast-food restaurants pay up to $16 an hour, and Target is advertising warehouse jobs at up to $24.
Kastner said, “The spread between the shipbuilding manufacturing wage and basic wage in services such as retail essentially disappeared. So it’s just much easier for someone to leave and do a less demanding job.”
Annual attrition among welders is 30%. Among the younger generation, there is “more job hopping, looking for better money, better benefits,” said Kenny Blizzard, a 37-year veteran welder and assistant shop steward for the United Steelworkers. Some welders can earn $5 or $6 more elsewhere, he said.
Higher salaries would help a lot, Kastner said. “It would bring people back into the fold.” But shipbuilders’ ability to pay more is constrained by contracts signed before the pandemic. Newport News’ third-quarter profit margin was just 1%. That is why the industry is pressing the Navy and Congress to rework contracts to allow for more pay upfront.
That, along with the demand signal, will improve submarine production, Kastner said. “I can’t predict when, but I know it’s going to get much better.”"