Bath Iron Works must consider doing whatever is necessary to stay competitive as the Navy continues its quest for the next generation of warships.

That has meant layoffs and the elimination of the third shift at BIW. And apparently, elsewhere it might mean hiring illegal aliens.

While BIW is doing what it can to control costs, its major competitor for building the DD(X) destroyer is finding another way to cut corners. The Navy has advocated consolidating its destroyer contracts with one builder. Political pressure has stopped the move, at least temporarily, but BIW is not secure as long as the military puts a premium on the bottom line without paying adequate attention to the benefits of competition and Bath’s reputation for quality.

In May, 26 undocumented workers were detained at the Northrop Grumman shipyard in Pascagoula, Miss. Even with the added scrutiny of the post-Sept. 11 world, the workers were able to get into the shipyard and collect a paycheck, likely at wages considerably lower than a documented worker would earn.

This tells us two things: First, the problem of illegal immigration remains a major hurdle for the country’s economy and security.

Second, when the Navy considers awarding all the work on new destroyers to one shipyard, it should consider what might happen with all of its ships in one basket.

There’s no evidence those workers have ties to terrorists. They were likely just cheap labor.

But the arrests follow plans from BIW that 27 union custodial employees will be replaced by nonunion workers from out of state.

As this page pointed out earlier this week, the average labor costs for the Pascagoula shipyard are $3 per hour less than BIW’s. Twenty-six undocumented laborers don’t account for all of the difference, but it is an example of why cheaper isn’t always better.