Machinists union turns down Spirit AeroSystems contract offer, approves strike
WICHITA, Kan. (KWCH) - Update: Aircraft workers that are part of International Machinists and Aerospace Workers, IAM Local 839 (District 70) said “no” to a new contract offer from one of Wichita’s largest employers and with that, are moving forward with a plan to strike.
Union members gathered at Hartman Arena in Park City Wednesday, voted against a new contract Spirit AeroSystems said was its “best and final“ offer.
The offer, in part, included a 16% pay increase over the course of the four-year contract that would’ve ran into June of 2027. With other factors, that pay increase could’ve added up to 34%. The contract also addressed health insurance plans, overtime, retirement benefits and bonuses. Concerns with possible health insurance changes and costs not covered were among the key issues cited by members who voted against the contract offer.
The tally in Wednesday night’s vote included 79% rejecting the contract. Further, 85% voted to strike.
With their vote, union members expressed that the offer doesn’t live up to what they expect. With at least two-thirds of support from those gathered to cast a vote Wednesday, the union also voted to strike, setting in motion a work stoppage that will begin Saturday and continue indefinitely.
The union represents about 6,000 machinists at Spirt AeroSystems, producing 70% of Boeing’s narrow-body aircraft and defense and business jet structures. The company’s current contract with the IAM/IAMAW expires on Friday.
Late Wednesday night, the union confirmed a strike is scheduled to start at 12:01 a.m. Saturday, June 24 and offered the following statement:
“The IAM’s dedicated and hardworking membership at Spirit AeroSystems has worked without fail during tumultuous times, including a pandemic that saw everything grind to a halt. Most of our members have concluded that the company’s offer is unacceptable. IAM District 70 and Local 839 will regroup and begin planning the following steps to bring the company back to the table.”
In response to the vote, Spirit AeroSystems also released a statement, expressing disappointment with the vote.
“We are disappointed that our employees represented by the International Association of Machinists and Aerospace Workers in Wichita have rejected our four-year contract offer and have voted to strike. We believe that our fair and competitive offer recognizes the contributions of our employees and ensures we can successfully meet increasing demand for aircraft from our customers. We know that no one wins in a work stoppage; however, we respect the rights of our represented employees. Despite this setback, we are not distracted from the task at hand. We look forward to continued meetings with IAM leadership.”
Voting is currently underway at Hartman Arena in Park City on a proposed contract between SpiritAeroSystems and International Machinists and Aerospace Workers (IAM Local 839 (District 70) votes on a contract that could avert a potential strike.
Doors opened at 7 a.m. A presentation followed at 9 a.m. Polls close at 4 p.m.
The union represents about 6,000 machinists at Spirt AeroSystems, producing 70% of Boeing’s narrow-body aircraft and defense and business jet structures. The contract with the IAM/IAMAW expires on Friday.
The latest proposal includes a guaranteed 16% pay increase over the course of the contract. With other factors added in, that increase could add up to 34%. The contract would continue the “core and enhanced” health insurance plans. The contract offered also includes voluntary Sunday overtime work, nearly a 15% increase in retirement benefits, increased paid time off and a one-time $7,500 ratification bonus if the contract is approved on the initial vote.
In a statement last week, Spirit called the proposed contract “fair and competitive,” and said it “recognizes important contributions of the company’s factory employees and ensures that Spirit can successfully meet the increasing demand for aircraft from customers.”
Workers can review the contract on which union members will vote, here: https://www.spiritaero.com/negotiations/.
The four-year contract presented to Wichita workers represented by IAM Local 839 would begin June 24 and continue until June 20, 2027. If workers decline the proposed contract in Wednesday’s vote at Hartman Arena, a second vote would decide if a strike will follow. Two-thirds of voters need to be on board for a strike to happen.
A strike would lead to a ripple effect in the AeroSpace industry.
“Talk about the percentage of people, I’m hoping 99% of the people vote for (a) strike,” said Spirit employee Kathy Dyer, among those opposed to the proposed contract.
Dyer has worked at Spirit for more than a decade. She recalls the previous contract signed 13 years ago, a 10-year deal that received a three-year extension.
“I think our union has sold us out, bottom line,” she said. “I think that is what happened with the three-year extension. I think that’s going to happen again. I don’t think it matters which way we vote, I think it’s going to pass no matter what.”
The proposed contract is what Spirit calls its “best and final offer.”
Dyer said if two-thirds vote to strike, work on the Boeing 737 MAX program could come to a halt.
“It would hurt,” she said. “It would hurt, not just Spirit. It’s going to hurt a lot of smaller companies. It’s going to hurt Boeing. You know, it’s really going to hurt a lot of people.”
The union’s contract negotiation committee recommended acceptance of the proposed contract, citing improvements in key areas of concern with a new contract. The final decision is up to the workers, but Tuesday evening, Spirit AeroSystems Senior Manager for Corporate Communications Forrest Gossett said the company is “pleased that the IAM bargaining committee has reinforced its endorsement of this fair and competitive contract offer.”
“We look forward to building the future with our employees,” Gossett said in a statement to 12 News.
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