Spirit AeroSystems, a crucial Boeing supplier, ceased operations at its Wichita, Kansas factory on Thursday due to a strike initiated by workers represented by the International Association of Machinists and Aerospace Workers.
Following the rejection of Spirit AeroSystems’ “best and final offer” by employees, a work stoppage has been authorised and is scheduled to commence on Saturday, as confirmed by the union.
The International Association of Machinists and Aerospace Workers (IAM), which represents approximately 6,000 plant workers, reported that 79% of its members rejected the contract, resulting in an 85% vote in favour of the strike.
According to a statement issued by the union on Wednesday, they expressed that the dedicated and hardworking membership of the International Association of Machinists and Aerospace Workers (IAM) at Spirit AeroSystems has persevered through challenging times, including the pandemic. The majority of members have determined that the company’s offer is unacceptable.
In response, Spirit AeroSystems (SPR) announced that IAM-represented employees should not report to work on Thursday morning, but they will continue to receive their pay.
The company expressed its disappointment in a statement, stating that they are disheartened by the rejection of their four-year contract offer and the decision to strike by the IAM-represented employees. They believed that their offer was fair and competitive, recognising the contributions of their employees and ensuring their ability to meet the increasing demand for aircraft from customers.
The union is currently surveying its members to identify their primary concerns and issues with the proposed contract. The union expects to receive the results of the survey in the upcoming days.
Rickey Wallace, General Vice President of the IAM – Southern Territory, expressed the union’s eagerness to hear the feedback from their members and their commitment to addressing their concerns.
In response to the situation, a federal mediator has been assigned at the union’s request to facilitate discussions and assist in reaching a resolution.
Both parties, engaged in negotiations since May, had reached a tentative agreement last week. The proposed deal, as outlined by the union, included a 34% wage increase, sustained health insurance, a 14.7% boost in retirement benefits with a new 401k match, voluntary Sunday overtime, and increased time off. However, the contract was voted down by the rank and file members on Wednesday.
Spirit AeroSystems is a major global manufacturer of aerostructures, producing airplanes such as fuselages and wing components. The company supplies parts for various Boeing and Airbus models, as well as for Bombardier, Northrop, Bell Helicopter, Mitsubishi, and Lockheed.
Expressing concern, Wallace acknowledged the importance of addressing the situation promptly to ensure service to Spirit AeroSystems’ clients and the return of union members to work.
Industry analysts suggest that a more financially robust contract for workers could have inflationary effects on the broader industry.
Richard Aboulafia, an analyst and managing director at AeroDynamic Advisory, highlighted the uncertainty surrounding the cost of satisfying the workers and the unprecedented nature of this shift in an industry that has historically experienced deflation.
The IAM and Spirit AeroSystems recently concluded a 10-year contract agreement in 2010, with a three-year extension in 2020.
Wallace attributed the membership’s decision not to ratify the deal to a prolonged absence from the bargaining table and some underlying frustration. He described the contract offer as generous.
The strike is set to commence at 12:01 am CT on Saturday, June 24, coinciding with the expiration of IAM’s current contract with Spirit AeroSystems. Both parties have expressed their intention to reconvene at the negotiation table in the near future.
By Vanessa Yurkevich, CNN
Updated 3:22 PM EDT, Thu June 22, 2023
