NEWPORT NEWS SHIPBUILDING AND UNITED STEELWORKERS OF AMERICA ANNOUNCE LETTER OF UNDERSTANDING ON PRODUCTIVITY

NEWPORT NEWS, Va., November 28, 2000 -- Newport News Shipbuilding and Local Union 8888 of the United Steelworkers of America announced today that they have signed a Letter of Understanding that reaffirms the parties mutual interest and obligations in maintaining full cooperation between the company and union that will permit continued safe, economical and efficient operations. This Letter of Understanding is one result of a series of meetings that the company and the union have been engaged in to improve the working relationship and communications between the company, the union, and its employees.

"In order to ensure the continuing success of Newport News Shipbuilding as the best shipbuilder in the world, the company and the union formally reaffirmed our mutual interests and also agreed to work collaboratively to improve productivity," said NNS Vice President of Human Resources Al Little. Little added that, "These productivity-related goals provide maximum value for our customers and are intended to secure current and possibly additional work, and accordingly, better job security for employees."

"The union has always recognized that the company and the union have the same interests when it comes to producing a quality product on schedule and within budget. We will continue to actively encourage employees to find new ways to perform work of the highest quality in the most efficient and safe manner," said Arnold Outlaw, president of Local Union 8888 of the United Steelworkers of America.

Recently, a meeting of the Labor-Management Communications Committee under the new contract was held. A broad range of topics and alternatives were discussed. "Improving our productivity and, therefore, reducing costs is the number one priority at Newport News Shipbuilding," said Dave Rineer, director of Labor Relations at NNS.

United Steelworkers of America International Staff Representative William Harriday said, "Also important to making this joint effort a success is the implementing of initiatives to provide a work environment that reinforces respect for the employees."

United Steelworkers of America International Staff Representative Ricky Pike added, "This kind of work environment should inspire creative initiatives and encourage employees to participate fully in this joint effort without fear of retaliation for their ideas and suggestions."

"This was a good start to an effort that is very important to both the company and to the union," added Rineer. Meetings will continue on an ongoing basis to further develop ideas and solutions to improve productivity.