Spirit-IAM Wichita Contract Negotiations
Spirit AeroSystems and District 70, Local Lodge 839 of the International Association of Machinists and Aerospace Workers (IAM) began contract negotiations May 1. The current contract expired at 11:59 PM on Friday, June 23, 2023. Production operations in Wichita will remain suspended until the parties can reach an agreement. While we are disappointed at the outcome of the first vote, despite the endorsement of the IAM Bargaining Committee, we continue to work with IAM representatives and are committed to reaching a competitive and fair agreement as quickly as possible for our employees.
UPDATES
- PREVIOUS UPDATES (expand all)
June 27, 2023: Following constructive talks with IAM representatives over the past several days, we have come to agreement on a new four-year contract which was unanimously agreed to by the bargaining committee of the Local Lodge 839. IAM union members will vote on approval this Thursday, June 29, at Hartman Arena in Park City, Kansas.
The new proposed contract is a result of negotiations that began this past Saturday between the company and IAM officials, mediated by the Federal Mediation and Conciliation Services (FCMS).
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. 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.
Highlights of the new contract terms include:
- Exact same core healthcare plan. Healthcare for employees will be 100% unchanged from the comprehensive coverage they currently have.
- No mandatory weekend overtime.
- Sign on bonus of $3,000 cash.
- Increased Pay: Total wage increase of 9.5 percent in year one, guaranteed increase of 23.5 percent over the life of the contract, and annual bonuses and COLA on top.
More details of the new contract offer can be found here.
As a reminder, operations at Spirit’s Wichita plant will continue to be suspended until the new contract is ratified.
Tom Gentile
President & CEO, Spirit AeroSystems
June 26, 2023: Over the weekend, the bargaining committees of Spirit and IAM Local 839, assisted by a mediator from the Federal Mediation and Conciliation Services (FCMS), continued to meet and have worked hard to make good progress toward new contract language.
Additional meetings are scheduled for today.
The meetings have been constructive and positive, and Spirit leadership remains committed to a timely resolution to negotiate a fair and competitive contract that addresses the priorities of our IAM-represented employees.
We thank the FCMS mediator for helping move the talks forward, and we will continue to update you as the negotiations progress.
Also, as a reminder, the company has instructed employees who can work from home should do so beginning Monday, June 26.
Tom Gentile
President & CEO, Spirit AeroSystems
June 23, 2023: We are disappointed by the outcome of the IAM vote on Wednesday, despite the endorsement of the IAM Bargaining Committee. We also want to update you on our ongoing efforts to reach an agreement.
Since the vote, the Spirit team has spent the past twenty-four hours speaking with IAM representatives. We have agreed to re-engage on Saturday morning with the IAM Bargaining Committee and representatives of the IAM with the assistance of a mediator from the Federal Mediation and Conciliation Service (FCMS).
As has been our focus throughout these negotiations, we want to provide our IAM-represented employees a fair and competitive contract. We are committed to reaching an agreement with Local 839 as quickly as possible for our employees. We are experiencing increasing demand for aircraft production as air travel returns to pre-pandemic levels, and it’s important to our employees and our other stakeholders, as well as our company that we continue to support our customers as our industry recovers.
While the contract officially expires on June 24, the company suspended production Thursday and Friday in light of the results and as we continue to pursue an agreement. Production operations in Wichita will remain suspended until the parties can reach an agreement.
Tom Gentile
President & CEO, Spirit AeroSystems
June 21, 2023: Spirit to Suspend Factory Operations
In light of the decision to strike by Spirit AeroSystems employees represented by the International Association of Machinists and Aerospace Workers today, Spirit will suspend factory production prior to the expiration of the contract. Beginning with the start of first shift on Thursday, June 22, all IAM-represented employees are not to report for work but will receive pay for their regularly scheduled work hours. All scheduled overtime is canceled.
All employees not represented by the IAM should report to work as usual on Thursday.
We are disappointed that our employees represented by the IAM rejected our four-year contract offer and 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.
June 15, 2023: The company provided its best and final offer. The company feels this is a fair and competitive offer, as was stated at the beginning of the negotiations.
June 9, 2023: Wage and benefit issues were predominantly discussed this week. The parties will continue talks on Saturday, June 10, leading into next week, when the Company expects to be able to provide the Union’s negotiation committee with a best and final offer. The company’s goal, as it has been throughout these negotiations, is to provide a fair and competitive offer.
June 2, 2023: Presentations on health insurance and the company’s financial state were heard by the bargaining committees, as negotiations this week focused on economic (wages and benefits) issues.
May 26, 2023: In addition to continuing non-economic discussions, the union presented their initial economic (wages and benefits) proposal. We will continue economic discussions next week as we look to reward our employees with a competitive and fair contract.
May 19, 2023: We continue to have productive non-economic discussions. These will continue next week and we expect to begin discussions around wages and benefits in the coming days.
May 12, 2023: Non-economic discussions continued for a second week. In our view, the discussions have been productive and progress is being made. Non-economic discussions will continue next week.
May 5, 2023: Both the Company and IAMAW presented non-economic proposals during the first week of negotiations. Non-economic subjects will continue to be discussed next week.
May 1, 2023: Spirit and the International Association of Machinists and Aerospace Workers (IAMAW) opened negotiations for a new collective bargaining agreement. The current CBA expires on June 23, 2023. We expect to spend the first few weeks working on non-economic issues. We will bargain in good faith to reward our IAM-represented employees with a competitive contract as we meet the increased demands from customers.
FACT SHEETS
Negotiations Process
Here’s what to expect during the negotiations process.
Understanding Strikes
Learn more about the strike authorization vote and the implications of a strike.
IAM Contract Vote
Upcoming Vote TBD.