Shipyard deal
worries unions
United Defense Industries Inc.'s announcement yesterday that it will become the largest private ship repairer in Hawaii upon purchasing Honolulu Shipyard Inc. was met with negative reaction by Pearl Harbor Naval shipyard's unions.
Honolulu union leaders fear that the newly formed company, which will be called Hawaii Shipyards Inc., will attract private and federal jobs at the expense of local Pearl Harbor Naval Shipyard workers, said Ben Toyama, Western area vice president of the International Federation of Professional and Technical Engineers.
The $16 million deal, which is expected to close by March, positions UDI's existing Hawaii subsidiary, U.S. Marine Repair, as the largest supplier of ship repair and overhaul services for naval vessels stationed at Pearl Harbor, said Doug Coffey, spokesman for UDI.
"We already have significant operations in Norfolk and San Diego this adds a third Navy homeport for us to grow," Coffey said. "It provides us with a stronger market position."
Honolulu Shipyard had been partnering with USMR since 2001 in the repair and maintenance of U.S. Navy ships on Pearl Harbor.
USMR is focused exclusively on dry dock and topside shop repair services for the U.S. Navy, other defense agencies and commercial customers. In addition to the Navy, USMR government customers include Military Sealift Command, the Maritime Administration, the U.S. Army and the U.S. Coast Guard. Major commercial customers include owners of tankers, cargo ships and passenger vessels such as Disney, Holland-America Lines and Royal Caribbean Cruise Line.
Bill Clifford, president of Honolulu Shipyard Inc., could not be reached for comment. But after the transaction is complete, USMR said it plans to retain its current team and to continue ship repair operations at Pearl Harbor. The acquisition will allow the company to provide additional services to Navy ships, submarines and commercial vessels, Coffey said.
"We look forward to expanding our presence in Hawaii and for the opportunity to continue to grow our company while providing the resources to better serve our primary customer, the U.S. Navy," said Al Krekich, president of USMR.
But Pearl Harbor Naval Shipyard union leaders fear an expanded presence could mean more privatization and outsourcing of federal civilian jobs, Toyama said.
"We weren't forewarned of the sale, but it's a sign of the times," Toyama said. "Under President Bush, the whole process of repairing ships has become very political. They are privatizing and turning to private industry more and more, but they haven't shown how they can do it faster or cheaper."
Jason Holm, spokesman for Pearl Harbor Naval Shipyard, declined to comment on the transaction.