More industrial action hits the US aerospace industry
September 24, 2024
A strike has begun at Textron Aviation after about 5,000 members of the International Association of Machinists and Aerospace Workers (IAM) Local Lodge 774 District 70 rejected the company’s most recent contract proposal. This is the same union (but not the same Lodge) that is undertaking industrial action against Boeing.
The strike began on Monday morning (23 September), after a vote on Saturday. It involves about 5,000 workers employed at various Textron Aviation facilities around Wichita, Kansas.
Textron presented its final contract offer late on Wednesday. The 57 page contract included a 26% general wage increase over the four-year life of the contract, with 11% immediately on ratification, 4% on 21 September 2025, 5% on 20 September 2026, and 6% on 19 September 2027. A maximum annual cost of living adjustment was increased from $700 to $1,500. This is significant, as many workers felt that existing cost of living adjustments, had not kept up with increases in the actual cost of living. A guaranteed US $3,000 lump sum payment was to be made in every year of the contract, together with new longevity pay, enhanced retirement benefits, and tight controls on increases to health insurance premiums (with a zero increase for the ‘no-deductible’ plan).
As in the ongoing Boeing strike, union members overwhelmingly voted to the strike even though their union leadership had recommended approving the new contract. In the Textron case, 81% of union members reportedly voted in favour of strike action, citing pay rates, healthcare, and job security as their main concerns.
Textron Aviation expressed disappointment: “that IAM District 70, Local Lodge 774 members did not vote to accept the proposed four-year contract with Textron Aviation and have chosen to strike. The contract offer, which took six weeks of thoughtful and good-faith negotiations by both the Union and the company negotiating committees, provided a plan that aimed to protect the future of all Textron Aviation employees and the Wichita community.”
The strike is expected to have a significant impact on Textron Aviation’s operations, with potential disruptions to production schedules and deliveries. The company has taken steps to mitigate the effects of the strike, including directing customers to alternative channels for service and parts.
IAM Local 774 released its own statement, saying that its members had “overwhelmingly rejected the company’s offer,” and were pursuing improved pay rates, healthcare, and job security after having voiced their concerns regarding compensation and benefits, highlighting the pressing need for enhancements to ensure the well-being and livelihoods of all workers.
“The IAM looks forward to returning to the table with Textron Aviation leadership to work on an equitable agreement for both parties,” the Union added.
