San Diego shipbuilder announces layoffs
The last major shipbuilder on the West Coast began informing 700 employees Friday they may lose their jobs in January.
General Dynamics NASSCO, situated in Barrio Logan, sent letters to employees last week that should arrive in mailboxes this week. A layoff notice was filed Friday with the state Employment Development Department, the company said.
“We are working diligently so not all employees who were notified will be affected,” said a statement from the company provided by spokesman Dennis DuBard. “We regret the impact this will have on employees and their families.”
The shipbuilder is one of the biggest moneymakers for the Unified Port of San Diego, paying rent of $3.4 million in fiscal year 2015, and supports 3,500 jobs. In June, it was awarded a roughly $3 billion contract from the Navy to build six oiler ships and, in August, won a contract to build two container ships for San Francisco-based shipping company Matson.
The shipbuilding industry is known for boom-and-bust cycles. NASSCO is scheduled to deliver a record six ships this year, but only two next year. The company has a history of announcing layoffs, only to cancel all or most of them once more work comes in.
In 2015, it canceled 107 of 142 layoff notices after it got more Navy work. In 2014 the company sent a layoff notice for 152 employees but narrowed it to 24 job losses. In 2013, it canceled 655 layoffs after federal budget sequestration cuts were not as severe as predicted.
NASSCO’s workforce has varied considerably throughout the years. In 1975, it had 5,500 workers but had dropped to 3,800 by 1990. It shot up to 5,200 in 1995, only to drop to 2,900 in 2000. By 2015, it had 4,000 workers.
NASSCO said it will provide programs to assist workers that may be laid off in January through the San Diego Workforce Partnership, San Diego Regional Chamber of Commerce and San Diego Regional Economic Development Council.
The company is expected to benefit from the Navy’s plan to base more ships in San Diego, increasing from 59 to 70 within the next four years.
General Dynamics built its first commercial container ship in 1960 and its first ship for the Navy in 1963.
Union-Tribune staff writer Gary Robbins contributed to this article.
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phillip.molnar@sduniontribune.com (619) 293-1891 Twitter: @phillipmolnar
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