Navy Secretary John Phelan recently emphasized the necessity for competitive pay within the US shipbuilding industry to attract and retain skilled workers. This call to action comes as industry experts recognize pay disparity as a significant factor impacting the sector’s ability to maintain a proficient workforce.
Concerns About Shipbuilder Wages
During a defense summit held in Fort Wayne, Indiana, Phelan highlighted that low wages are a critical issue. He noted that potential workers often have the option of making similar earnings at companies like Buc-ee’s and Amazon, which offer less physically demanding jobs. As Phelan remarked, “It’s hard to get that person to want to do that job.”
Comparative Wage Statistics
- Buc-ee’s convenience store pays its employees between $15 and $25 per hour.
- Amazon’s fulfillment and transportation employees earn an average of over $23 an hour.
Such figures draw attention to the perceived inadequacy of shipyard wages, which vary significantly depending on the role. The shipbuilding unions have not publicly commented on specific wage data.
Recruitment Challenges in Shipbuilding
Experts have long criticized the shipbuilding sector for its inability to offer competitive compensation. The challenges are compounded by a shift in worker preferences toward jobs that provide better quality of life and conditions. Suggested solutions include:
- Increasing wages to competitive levels.
- Improving working conditions in shipyards.
- Enhancing automation and training programs.
- Providing affordable housing options nearby.
- Offering additional employee benefits.
Huntington Ingalls Industries (HII), a leading shipbuilder, has noted a decline in the average years of experience among its workforce. This trend affects retention rates and the overall expertise within the industry, complicating recruitment efforts.
Progress and Future Focus
Phelan stated that while some recent contracts show progress regarding wages, a broader focus is required across all shipyards and building programs. Experts argue that addressing these wage issues is essential to minimizing delays and cost overruns in the Navy’s important shipbuilding projects.
HII has begun taking steps to address these challenges by investing in hiring more experienced workers and recruiting through regional training programs. CEO Chris Kastner expressed cautious optimism about the company’s new initiatives during a recent earnings call, indicating positive changes in crew capabilities.
As the Navy seeks to rebuild its industrial base, prioritizing competitive wages remains pivotal. It is essential not only for attracting new talent but also for retaining the skilled workers critical to the future of US naval capabilities.
