Spirit AeroSystems engineers accept 23% wage increase in new four-year contract
November 27, 2024
Spirit AeroSystems engineers represented by the Society of Professional Engineering Employees in Aerospace (SPEEA) in Wichita, Kansas have voted to accept a new contract. Effective from the start of December, this four-year arrangement includes wage increases of at least 23% over the life of the contract, “with a provision for greater raises if needed to match labour-market conditions,” explained SPEEA. Additionally, the deal guarantees a minimum 5% bonus in the Spring of 2025 and increases the amount Spirit will contribute to the retirement funds for the “overwhelming majority” of engineers in 2026.
The contract replaces a previous 2018 iteration which was ratified six years ago with a 70% approval rate, and due to expire on 1 December 2024. However, this vote was a close-run call – with the agreement approved by just 20 votes (out of a total 478 ballots cast). SPEEA had previously unanimously recommended its members approve the offer, which was drawn up after “weeks” of negotiations between Sprit AeroSystems and the Witchita Engineering Unit (WEU) Negotiations Team.
“While negotiations always involve give and take, the team unanimously recommends the offer based on the significant improvements in key areas, including wages, benefits and work/life balance,” chief spokesperson for the SPEEA team Rich Plunkett had previously stated. He added that the negotiations had also taken into account the priorities addressed in two member surveys.
However, during contract negotiations – which took a three-week break during the uncertainty imposed from the ongoing Boeing strike – SPEEA has also criticised its membership numbers, stating: “the current membership at 52% remains insufficient and has emboldened Spirit to take advantage of the situation. Our membership numbers are not sending strength”.
A swift end to a contract renegotiation process initiated in September comes as Spirit AeroSystems has struggled with the impact of Boeing’s recent prodacted strike, reporting $477 billion on $1.5 billion in revenue for the third quarter of 2024 and expressing “substantial doubt about the company’s ability to continue as a going concern” in its latest regulatory filing.
Announcing a three-week furlough for Spirit employees at the height of the Boeing work stoppage, CEO Pat Shanahan also cautioned that “financial pressures may require [Spirit] to implement additional cost savings measures including layoffs and additional furloughs”. Spirit remains on track to close the acquisition by Boeing in mid-2025.
