The shipyard president said “dramatic action”

is needed now to keep costs in line.

BATH (AP) – Bath Iron Works said Wednesday it will lay off 150 employees in the next month to lower the shipyard’s labor costs and help secure future Navy contracts to build guided missile destroyers.

“This will help narrow the gap with the competition on the hours we spend to deliver a DDG, and reduce the cost of every hour we charge to the Navy,” said Dugan Shipway, shipyard president.

The company did not provide specifics on the cuts but said both salaried and union employees would be affected.

Shipway warned that BIW, which competes with the Ingalls yard in Mississippi for destroyer work, could become unaffordable before the end of the decade unless it brings its costs into line.

“Without dramatic action now, our future and our proud heritage are at risk,” Shipway said.

He said swift action improves the chances of preserving quality manufacturing jobs at BIW.

U.S. Sen. Susan Collins expressed concern for dislocated workers and pledged to help them. A member of the Senate Armed Services Committee, she said she will work to ensure that BIW continues to supply ships to the Navy far into the future.

Collins noted that the latest defense appropriations bill includes $3.2 billion for three DDG destroyers, two of them to be built at Bath, as well as $1.1 billion for continued development on the Navy’s next generation of destroyers.

“Bath Iron Works remains a vital part of the economy in midcoast Maine. It is encouraging that the overall number of individuals employed today is higher than it was just a year ago,” she said.

U.S. Rep. Michael H. Michaud, D-Maine, expressed concern Wednesday at BIW’s decision.

“I am disappointed by the decision to let so many hard working employees go, and I am concerned about the profound impact this will have on workers, families, and the entire community. It is my hope that there will be no further layoffs and that we can work to strengthen the job security at Bath Iron Works,” he said.

Michaud said he has contacted the Maine Department of Labor to discuss the implications of the layoffs.

“In the days and weeks ahead, my office will work to provide whatever assistance is necessary to help these workers transition through this difficult time.”

The Coastal Counties Workforce Board, which covers Bath Iron Works, recently received an additional $420,000 from the United States Department of Labor to cover displaced workers in the region.

This funding will help with the initial transition efforts while long-term needs are assessed, Michaud said.

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