Shipyards to share $7B in navy ship contracts

The federal government said Thursday it plans to award contracts worth $7 billion to three shipyards for maintenance and repair work on Royal Canadian Navy frigates - a decision one defence analyst says hearkens back to a historic approach to shipbuilding in Canada.

Public Services and Procurement Canada announced the advance contract award notices to Halifax’s Irving Shipbuilding Inc., Seaspan Victoria Shipyards in Victoria, B.C. and Davie Shipbuilding in Levis, Que.

The contracts are to maintain Canada’s 12 Halifax-class frigates until the end of their operational life, estimated at another 20 years.

The government said in a statement that after consultations, it was decided the infrastructure and workforce of the three Canadian shipyards were needed to work on the frigates.

It was not immediately clear how the money would be divided among the three locations.

Dave Baker-Mosher, president of the Unifor Marine Workers Federation Local 1 union at Halifax’s Irving shipyard, called the government’s plans “devastating.”

“It’s disappointing that our government cannot understand how these ships are worked on and how much skill is needed,” he said.

Baker-Mosher warned that the decision will mean layoffs, and that those highly skilled younger workers handed pink slips may not return.

In B.C., Tim Page with Seaspan said the company was pleased with the government’s intent to contract the Victoria shipyard.