2018 Spirit AeroSystems (Europe) Limited UK Gender Pay Gap Report

Spirit AeroSystems (Europe) Limited (‘Spirit’ or ‘the Company’) values our employees and the contribution they make. We pay all of our employees commensurate with the market for the position they are in and their unique skills and experience. Spirit employees enjoy a working environment where there are equal opportunities for everyone to fulfil their potential and contribute to the success of the business, irrespective of gender.

Spirit is the wholly owned subsidiary of Spirit AeroSystems, Inc., a global company. Spirit’s customers include Airbus and Boeing. Spirit designs, develops, and manufactures complex structures for the aerospace industry. Spirit’s manufacturing facility is located in Prestwick, Scotland.

Spirit had 881 Full Pay Relevant Employees at the snapshot date of 5th April 2017, comprising of various skill-sets including; design, engineering, transfer and project management skills, as well as a highly skilled manufacturing population.

The workforce is predominately male, with 73 female members of staff (8%) and 808 male members of staff (92%).

The Gender Pay Gap (the ‘GPG’) is a measure of the difference in the average pay of men and women – regardless of the nature of their work – employed by Spirit.

Annually, companies which employ more than 250 employees must report the following:

  • Mean and Median GPG in hourly pay;
  • Mean and Median bonus GPG;
  • Proportion of men and women who receive a bonus; and
  • Distribution of men and women across pay quartiles.

The GPG shows the difference between the mean (average) and median (mid-point) hourly earnings and bonus payments for both male and female employees, expressed as a percentage.

Distribution of all employees across the pay quartiles (at April 5, 2017)
Male Female
Upper Quartile 91% 9%
Upper Middle Quartile 93% 7%
Lower Middle Quartile 95% 5%
Lower Quartile 87% 13%

Gender Pay Gap in Hourly Pay:

  • Mean Pay Gap: – (4.03%) This means that the mean average hourly rate for female employees is – ( 4.03%) more than for male employees.
  • Median Pay Gap: – (2.98%) This means the median hourly rate for female employees is – (2.98%) more than for male employees

Spirit’s average hourly GPG is lower than the UK National Average GPG, which according to the Office of National Statistics is 18.1%.

In the 12 months preceeding April 2017, 98.89% of males and 98.7% of females received a bonus.

Bonus GPG:

  • Mean Bonus Gap: – (34.21%) Mean (average) female bonus earnings are – (34.21%) higher than male employees
  • Median Bonus Gap :- (14.12%) Median (middle) female bonus earnings are – (14.12%) higher than male employees.

Basic Pay

The majority of the Spirit female population, 85%, is employed in professional positions, while 63% of the male population is employed within the manufacturing function, which has a specific set of terms and conditions. All populations are benchmarked within the marketplace to ensure their total remuneration is in line with market. Employees in the manufacturing function have the opportunity to enhance their basic pay through overtime and this often forms a significant amount of their actual earnings, but in line with the guidance on Gender Pay Gap Reporting calculations overtime earnings have not been taken into account.

As mentioned above, employees within the manufacturing population have terms and conditions that have been negotiated with the Trade Union (TU) and these terms dictate that from a parity of pay point–of-view all of our Approved Operator Grade A’s are on the same spot salary and all of our Approved Operators – Grade B again have the same spot salary aligned to their role within the Company.

 

Bonus

At Spirit, we ensure that there is no gender bias in the approach to bonus payments. The bonus awards differ between populations, mainly due to having different terms and conditions for different levels of roles within the Company.

Stock awards are also included in the bonus calculations. These form part of the terms and conditions for senior roles within the organisation, but are not available to all staff.

Encouraging Development from the Manufacturing Population

Spirit undertakes Voluntary Performance Management in manufacturing areas. The purpose of this is to help employees further develop skills and experience to facilitate career progression. This currently is a voluntary process for the manufacturing function population.

Spirit has also executed a Development Opportunities Agreement with the Trade Union. If there are positions vacant within the Company, and the skills and experience are available internally, then Spirit will advertise the position both internally and externally. In recent years, a significant number of employees from the manufacturing area have been provided new career opportunities in the professional population to aid their development and salary growth.

Workforce Development

In 2018, Spirit implemented a Graduate Apprentice Programme which will give existing employees the opportunity to up skill and the potential to progress their career.

Within the Modern Apprenticeship Programme, for 2018, we have increased the number of Apprentice recruits we will take on during the year from 8 to 15. This is designed work toward addressing the gender balance by creating more opportunities for all.

Recruitment

Spirit recognises that females are still under-represented in STEM roles nationally and our workforce is no different. In order to address this, we have various initiatives where employees promote these careers within the school environment – both at primary and secondary level. We have a number of females within the business who support these initiatives and continue to reinforce the message that there are lots of opportunities in this field.

Spirit also supports various initiatives promoting females in Engineering roles and promotes this on a national basis via Skills Development Scotland and our local College – “This Ayrshire Girl Can” for example. We will continue to support and build upon this and ensure that we encourage a diverse workforce for the future.

Work Life Balance Policies

Gender has never been a hiring criteria and this will not change. The Company already has appropriate policies in place to enhance work life balance amongst its existing employees such as, flexible working, shared maternity/paternity leave, time off for dependents and finally sabbatical leave. We actively promote such policies where appropriate to do so and as a mechanism to attract and retain key talent into the business.

Employee Business Resource Group

We have established an Employee Business Resource Group whose goal is to attract, engage, and retain a diverse workforce. This group is implementing strategies to act as ambassadors to engage new employees and visitors to the site to ensure everyone is orientated to the business and equipped to be successful immediately.