Spirit AeroSystems and a chapter of the International Association of Machinists and Aerospace Workers reached a tentative contract agreement on Tuesday after the union declined the Boeing supplier’s contract offer and went on strike last week.
As a result of the strike, Spirit AeroSystems suspended production at its Wichita, Kansas, production site last week, where the union’s chapter is based.
Spirit AeroSystems’ updated four-year contract proposal with IAM Local Lodge 839 includes additional guaranteed annual pay increases, including a 6% bump after the first year, as well as a $3,000 cash signing bonus.
Other highlights from the new offer include no mandatory overtime on weekends, a $7.50 an-hour incentive for employees who travel and a 3.5% cost of living adjustment baseline.
“We listened closely and worked hard in our talks over the last several days to further understand and address the priorities of our IAM-represented employees,” Spirit AeroSystems President and CEO Tom Gentile said in a statement. “We believe this new offer is fair and competitive and recognizes the contributions of our employees covered under this proposed agreement, enabling our ability to meet the growing needs of our customers and deliver value for our investors.”
The labor union’s negotiating committee worked throughout the weekend to address its membership concerns, IAM Southern Territory General VP Rickey Wallace and Chief of Staff Craig Martin told Local 839 members in a letter posted on Facebook, recommending the union ratify the contract.
“The committee listened to our membership and has done an excellent job addressing our members’ needs,” the leaders said in the letter.
Operations at Spirit AeroSystems’ Wichita plant will continue to be suspended until the new contract is ratified, the company said in its announcement Tuesday.
