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Thu, Nov 07, 2024

Spirit AeroSystems and SPEEA Reach Tentative Contract Agreement

Union Negotiators Urge Engineers to Accept New Proposal

Spirit AeroSystems, a designer and supplier of Airbus and Boeing parts, has reached a tentative agreement with the bargaining team for its engineer union. The new four-year contract would provide significant increases to salary, bonuses, 401k, and PTO.

The deal expands the budget available for pay raises by at least 19% over the four-year contract life. It features a minimum 5% bonus next Spring, improvements to Spirit’s 401k contribution in 2026, and additional paid time off for vacations, sick days, and new parents.

The offer also includes two letters of understanding. The first lays out the partnership between Spirit AeroSystems, SPEEA, and the FAA, and the other protects engineers who report safety issues.

The Society of Professional Engineering Employees in Aerospace (SPEEA) negotiating unit is urging the union to accept the offer.

“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,” commented Rich Plunkett, SPEEA’s director of strategic development and primary negotiating team representative.

The complete contract will soon be posted on the SPEEA website for review, and discussions will be held starting the week of November 18. The union, which represents over 1,000 of Spirit’s engineers, can begin submitting mail-in votes as early as November 14.

Spirit AeroSystems, based in Wichita, Kansas, is an aerostructure manufacturer. It develops and supplies fuselage parts, wings, flight deck sections, nacelles, and other components for Airbus and Boeing’s commercial aircraft.

With prices rising and both mega manufacturers facing startlingly high losses, however, Spirit AeroSystems has been put in an uncomfortable spot. Boeing agreed to purchase Spirit in July through a $8.3 billion deal. 

“After carefully evaluating Boeing’s offer to combine, we are confident this transaction is in the best interest of Spirit and its shareholders, and will benefit Spirit’s other stakeholders,” stated Patrick Shanahan, Spirit President and CEO. “Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems.”

FMI: www.spiritaero.com

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