Allegany Ballistics Laboratory

Northrop Grumman and the Chemical Workers Local 261C have been working to negotiate a new collective bargaining agreement (CBA) that acknowledges the hard work of our represented employees and sets us up at Allegany Ballistics Laboratory for long-term success.

This site is a resource for employees as they seek information and updates about the negotiations process and what to expect. As soon as the union and the Company reach a new tentative agreement, this site will provide important information about the proposal. We encourage you to check back often.

Labor Negotiations 101

Offer Highlights

Check back here for updates.

Frequently Asked Questions – FAQs

Negotiations Process

The current contract with Chemical Workers Local 261C expires at 11:59 PM on Thursday, August 14, 2025. Northrop Grumman has been negotiating with the union since July 14, 2025.

What is the goal for negotiations?

The goal is for the union and Northrop Grumman to work together to reach a fair contract that recognizes your contributions and is beneficial for all employees.

What is discussed during negotiations?

Topics of negotiations include safety, wages, health care, benefits, and retirement.

How long will this contract be valid?

We expect the new contract will be valid for four years, but that could change based on the outcome of the bargaining agreement.

How can I participate in the collective bargaining process?

Check this page throughout the negotiations process for new information and please reach out to your union representative regarding any questions you may have.

Economic Issues

This section addresses common questions heard about the economic terms of a Collective Bargaining Agreement (CBA). Continue to check back for more Q&A as this section is updated.

Is it true that the value of any ratification bonus would be significantly reduced by federal and state taxes?

The July 31 offer included a ratification bonus. Had it been approved, the bonus payment would have been subject to a special federal tax withholding rate of 22%. Maryland and West Virginia treat bonuses as regular wages for tax withholding purposes, typically at a rate of 4 – 6% depending on your total income. Therefore, although individual employee situations may differ, employees could have received in their take-home pay approximately two-thirds of the gross amount of a ratification bonus. Additionally, some employees might have been eligible for a federal tax refund depending on their household’s total income.

Prevailing Wage Comparison

The chart below shows current wage rates at ABL and surrounding counties. Northrop Grumman's July 31 offer included an average 5.2% increase for the first year if it had been ratified.

Job Classification	Mineral County	Allegany County	ABL Current Wage	ABL July 31, 2025 Offer ($1.65 increase)
Auto Mechanic	21.30	22.38	32.24	33.89
Custodian	14.45	15.90	27.71	29.36
Tool and Die Maker	27.52	30.27	32.74	34.39
Material Coordinator	24.04	26.55	31.59	33.24
Carpenter	24.35	24.35	32.74	34.39
Electrician	28.56	28.56	36.31	37.96
Equipment Operator	22.41	23.93	30.94	32.59
Maintenance Mechanic	30.19	27.65	32.47	34.12
Pipefitter	30.35	32.16	32.74	34.39
Millwright	24.75	27.86	32.74	34.39

The July 31, 2025 Northrop Grumman offer is above local market and in-line with median household income.

Median Household Income
Allegany County: $55,248
Mineral County: $64,728

Unemployment Rate
Allegany County: 3.4%
Mineral County: 4%

Work Rules

This section addresses common questions heard about the work-related terms of a CBA. Continue to check back for more Q&A as this section is updated.

Can the Company implement an alternative schedule without mutual agreement?

No. An alternative schedule needs mutual agreement between the Company and the union prior to implementation.

What to Know About Strikes

No one benefits from a work stoppage. Northrop Grumman is committed to bargaining in good faith and reaching a fair agreement. As would be expected of any responsible business, we are taking the steps necessary to prepare for a work stoppage should one occur.

What is a strike authorization vote?

A strike authorization vote is a procedural vote where members vote for or against allowing union leadership to decide whether or not to strike. On July 31, members of the Chemical Workers Local 261C voted to authorize a strike if a CBA is not reached.

If I go on strike with the union, will I still get paid?

Employees who participate in strikes are not eligible to receive pay from the Company and cannot collect unemployment. Additionally, your time on strike will impact your future vacation accrual and 401(k) contributions. Typically, strikes have no end date, which could leave employees without pay and benefits for an undetermined amount of time.

If I go on strike with the union, will I still receive my health benefits?

Employees will continue to pay the active employee rate for benefits through the end of the month, plus one month. At that point, employees will be offered COBRA, a temporary continuation of your health insurance coverage, and will pay the full cost of benefits plus a 2% administration fee. Payment for active benefits and COBRA are processed through Fidelity and must be paid monthly. Likewise, retirement accounts will not receive Company contributions while employees are on strike.

In the event of a strike will operations at ABL continue?

Yes, production and operations of the plant will continue. We are obligated to support our customers and the warfighter. The Company has been working on a strike plan for months and coordinating with an outside firm and will be immediately implementing the plan utilizing replacement workers and non-union employees.

What happens if there is a strike, but I want to keep working?

Our employees have a right to strike, but they also have a right not to participate in a strike. Any employee who wants to continue to work may do so.

If the union elects to initiate a work stoppage, can a union-represented employee be terminated for not participating in the strike?

No. All employees have a right to participate in a strike and a right not to participate in a strike.

What happens if we don't have an approved CBA offer by midnight, August 14?

The current CBA will remain in effect after expiration date, unless and until the Company or the union provides the 10-day advance notice of termination. No strikes or lockouts are permitted until after the 10-day notice period has expired.

What if we decide to strike early and do not show up for work after August 14?

A strike before the required 10 days’ notice (e.g., no earlier than late August) would be a violation of the contract. Current Company-wide policies would remain in effect, including the attendance policy.

Messages from Jeff

Union Negotiations Update

To: All Northrop Grumman Employees at Allegany Ballistics Laboratory
Date: August 8, 2025

Team,
For the past several weeks, Northrop Grumman and the Chemical Workers Local 261C have been working to negotiate a new collective bargaining agreement (CBA) that acknowledges the hard work of our represented employees and sets us up and our customers for long-term success.

Late last week, represented employees voted not to ratify the proposed four-year agreement between the union and Northrop Grumman. While this was not the outcome we hoped for, I am confident we will work through this process together and reach an agreement that we all can support.

I want to ensure you hear more from me about the process and any offers that are put up for a vote. Most of you know me well and that I’m someone who values transparency.

In addition to getting information directly from the union, the ABL leadership has set up channels to facilitate better information sharing. This includes a new website to ensure clarity on the economic and non-economic offers.

I am committed to providing you updates as we move forward. In the meantime, I ask that we all remain focused on safety, quality, and delivery as we fulfill our commitments to support the warfighter and our customers.

Sincerely,

Jeff Baker

Director of Tactical Propulsion & Ordnance
ABL Site Lead
Northrop Grumman Defense Systems

Contract Negotiations Period Expectations

To: All Northrop Grumman Employees at Allegany Ballistics Laboratory
Date: June 24, 2025

As I am sure you are aware, Northrop Grumman and the union began contract negotiations for the contract period ending August 14, 2025. We have no way of knowing how long the process will take, but our committee’s goal is to bargain in good faith and reach an amicable agreement as soon as practically possible. Throughout negotiations we plan to continue with our normal operating schedule.

Negotiations will happen off-site, and those discussions should remain off-site. Union employees who have questions should direct them to their representatives, and non-union employees are reminded not to speculate or offer opinions regarding the negotiations or its outcomes.

In the meantime, the best thing we can do to support these negotiations is to remain focused on our business at hand: meeting our obligations to our customers and, most importantly, working safely. We will continue regular communications regarding our business and operational issues, as well as other non-negotiations topics.