‘They Accept Our Demands’: Machinists Approve Spirit AeroSystems Contract, End Strike

Jun. 29—Machinists have approved a four-year contract with Spirit AeroSystems, bringing six days of picketing to an end and allowing the Wichita-based aerostructures giant to resume production by Wednesday.

"The newly ratified contract includes significant improvements over the previously rejected contract in wages, prescription drug coverage, and overtime rules," the International Association of Machinists and Aerospace Workers union said in a 7 p.m. statement after a day of voting Thursday at Hartman Arena in Park City.

Sixty-three percent of voting members approved the contract, which preserves existing healthcare benefits, guarantees a 20% wage increase over four years and eliminates mandatory overtime work on weekends. Workers went on strike Saturday after 79% of voting members voted last Wednesday to reject Spirit's first offer.

The contract ratified by union-represented workers includes a $3,000 signing bonus.

The company announced that it would begin restoring operations at its Wichita plant Friday.

"We listened closely to our employees and brought forward a fair-and-competitive offer," CEO Tom Gentile said in a statement Thursday evening. "With its approval by our IAM-represented employees, we look forward to getting back to the important work of delivering quality products to our customers."

Rickey Wallace, IAM's general vice president of the Southern Territory, said the negotiations demonstrate the power of collective bargaining.

"At the end of the day, IAM members democratically decide what is acceptable to them during contract negotiations — and we always support their decision," Wallace said.

Employees at Spirit, the city's largest employer, had worked under the previous contract since 2010. Union leaders told The Eagle this spring that securing a short-term contract was a high priority for their 6,000 members.

Don Schilling, who has spent 43 years with the company and voted to ratify, said wages have been stagnant for too long. The new contract proposal doesn't fix that, but it's a step in the right direction, he said.

"It's been an 18-year wage increase beatdown basically since [ Boeing] sold us in 2005," Schilling said.

"It doesn't cover [inflation] but it's much better than we've seen. For a four-year window, I think we're doing pretty good with that."

Boeing hopes to ratchet up 737 MAX production to 38 per month by the end of 2023. Spirit also supplies Airbus, Bombardier, Bell Helicopter, Lockheed, Mitsubishi and Northrop, and has taken on more contracts with the U.S. Department of Defense in recent years.

An employee named Trevor, who declined to give his last name, said he also voted to approve the contract.

"I work on the defense side so I feel like we weren't going to get anything better no matter what," he said.

"I found out that they denied us extra pay on the defense side, so I'm not going to really support the union with that."

IAM negotiators unanimously recommended last week's initial Spirit contract proposal, which the company deemed its "best and final offer" and employees roundly rejected. Union negotiators also unanimously recommended the second offer.

Wichita Mayor Brandon Whipple welcomed the result of the vote in an interview Thursday.

"Both sides had the same goal in mind, which was getting back to work," said Whipple, who visited picketing sites Wednesday and has been in contact with Spirit leadership. "I just really applaud how both sides came back together, focused on the details of the contract.

"I think it makes sense to have a shorter contract. We've learned the economy has its ups and downs."

Whipple said most of the picketing employees he spoke to felt their concerns were being taken seriously in the second contract proposal.

"This contract is better than the first one because they accept our demands," said one voter who wished to remain anonymous. "The insurance issue was pretty sticky the first time, but this time they just gave us the same insurance and everything."

Not everybody agreed.

"It's like they tried to trick us," said a 13-year employee who voted against the contract and asked not to be named. "They took our insurance away on the first offer and then on the second offer, they bring it back. That's not gain. We haven't gained anything."

Spirit's first contract offer would have doubled the copay for some doctor's visits and eliminated coverage for hundreds of prescription drugs, forcing workers to pay out of pocket or find alternatives.

The initial contract offer would have required employees to use earned time off to opt out of mandatory overtime work on Saturdays, another provision that was unpopular with union members.

"I hope that this strike shows Spirit that employees are way more important to, not just them, but to what they do in the community with what Spirit provides them," employee Patrick Thomas said.

Jeremy Hill, director of the Center for Economic Development and Business Research at Wichita State University, told The Eagle last week that Wichita's manufacturing wages have not kept up with other aerospace towns in recent years.

"We're getting pennies for a dollar, man," said one employee who voted against ratification and asked to remain anonymous. "We build airplanes that millions and millions of people travel on. All we're saying is give us some respect."

Contributing: Casey Loving of The Eagle

This story was originally published June 29, 2023, 7:21 PM.

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