Learn the truth about EB's tax abatements, worker pay, and its real effects on our economy
Text of the executive summary can be found below
Download the summary of the report here
Download the full report here
Download the summary of the report here
Download the full report here
EXECUTIVE SUMMARY
General Dynamics Electric Boat (EB) is in an extraordinary financial position. Its contracts with the Pentagon guarantee it a profit, regardless of cost overruns, on everything that it designs, manufactures or maintains. It is one of only two manufacturers that the Navy is allowed, by law, to buy nuclear-powered submarines from. The Navy has identified these craft as key in its strategy against a perceived threat from China and is committed to buy multiple subs from EB each year.
EB enjoys considerable federal, state, and local assistance in grants, tax abatements and other forms of aid. In return for state assistance,
the manufacturer is supposed to submit annual reports on hiring, payroll and in-state purchasing. When we requested these reports,
the state withheld most of this information. We are pursuing a Freedom of Information complaint to get more information about
worker pay at EB. The report is submitted by EB to the state as proof that it is entitled to loan forgiveness. We strongly maintain
that taxpayers have a right to see this information, regardless of whether EB wants it publicly shared. We had an initial hearing on
the case April 4, 2024.
General Dynamics Electric Boat (EB) is in an extraordinary financial position. Its contracts with the Pentagon guarantee it a profit, regardless of cost overruns, on everything that it designs, manufactures or maintains. It is one of only two manufacturers that the Navy is allowed, by law, to buy nuclear-powered submarines from. The Navy has identified these craft as key in its strategy against a perceived threat from China and is committed to buy multiple subs from EB each year.
EB enjoys considerable federal, state, and local assistance in grants, tax abatements and other forms of aid. In return for state assistance,
the manufacturer is supposed to submit annual reports on hiring, payroll and in-state purchasing. When we requested these reports,
the state withheld most of this information. We are pursuing a Freedom of Information complaint to get more information about
worker pay at EB. The report is submitted by EB to the state as proof that it is entitled to loan forgiveness. We strongly maintain
that taxpayers have a right to see this information, regardless of whether EB wants it publicly shared. We had an initial hearing on
the case April 4, 2024.
Following a separate FOIA complaint, the Department of Social Services answered our query about how many people who list EB as
their employer have qualified for Medicaid or SNAP — 316.
EB has a considerable workforce in the state and just sealed a new contract with one of the major union coalitions at the site that stipulates a 21.4% raise for employees over the next five years. But our calculations show that the lowest wage workers will experience a net pay cut in the second year of the contract.
The data clearly show that EB can afford to compensate its workers well without any subsidies from the state of Connecticut or its municipalities, where the company consistently pays reduced property taxes either because of abatements or because it contests its assessments in court.
This data-based report by Colleen Shaddox shows how the State of Connecticut and local municipalities, particularly Groton, New London and Norwich, provide assistance to an extremely profitable corporation.
their employer have qualified for Medicaid or SNAP — 316.
EB has a considerable workforce in the state and just sealed a new contract with one of the major union coalitions at the site that stipulates a 21.4% raise for employees over the next five years. But our calculations show that the lowest wage workers will experience a net pay cut in the second year of the contract.
The data clearly show that EB can afford to compensate its workers well without any subsidies from the state of Connecticut or its municipalities, where the company consistently pays reduced property taxes either because of abatements or because it contests its assessments in court.
This data-based report by Colleen Shaddox shows how the State of Connecticut and local municipalities, particularly Groton, New London and Norwich, provide assistance to an extremely profitable corporation.
While there are many good paying jobs at EB, there are still workers with such low wages they are eligible for support services. The State not only directly funds salaries, but also subsidizes housing, transportation, SNAP and Medicaid benefits in addition to the tax abatements that rob the local municipality of much needed income from taxes. The rationale is that EB in turn creates high quality jobs while “performing a necessary service for the nation in contributing to military readiness.
The War Resisters League holds that war is a crime against humanity and is obviously opposed to the construction of weapons.
From a purely financial standpoint, the U.S. spends more on war and the preparation for war than the next ten highest spending countries combined. The country outlays nearly triple what the next highest spender, China, does. Is there any volume of weapons we can stockpile that will be deemed enough?
Military spending creates a long list of things Americans do without because resources are so heavily diverted to war: universal health care; a clean, efficient public transportation system; affordable housing; quality, affordable childcare, and more.
Finally, weapons production is a source of greenhouse gas and contributor to climate change. Nuclear powered submarines, obviously, produce nuclear waste as well.
Why do taxpayers keep spending money to support Electric Boat?
The War Resisters League holds that war is a crime against humanity and is obviously opposed to the construction of weapons.
From a purely financial standpoint, the U.S. spends more on war and the preparation for war than the next ten highest spending countries combined. The country outlays nearly triple what the next highest spender, China, does. Is there any volume of weapons we can stockpile that will be deemed enough?
Military spending creates a long list of things Americans do without because resources are so heavily diverted to war: universal health care; a clean, efficient public transportation system; affordable housing; quality, affordable childcare, and more.
Finally, weapons production is a source of greenhouse gas and contributor to climate change. Nuclear powered submarines, obviously, produce nuclear waste as well.
Why do taxpayers keep spending money to support Electric Boat?