Spirit AeroSystems and leaders of its largest union, International Association of Machinists and Aerospace Workers (IAM) have reached an agreement on a new four-year contract with an aim to end the strike that has paused the production at Wichita site.
IAM union members will vote on approval on Thursday, June 29, at Hartman Arena in Park City, Kansas.
The new proposed contract is a result of negotiations that began this past Saturday between the company and IAM officials, mediated by the Federal Mediation and Conciliation Service.
"We listened closely and worked hard in our talks over the last several days to further understand and address the priorities of our IAM-represented employees," said Tom Gentile, President and CEO of Spirit AeroSystems. "We believe this new offer is fair and competitive and recognizes the contributions of our employees covered under this proposed agreement, enabling our ability to meet the growing needs of our customers and deliver value for our investors."
The latest terms expand the management’s previous offer on health insurance and increased wages. It also includes a limit on mandatory overtime, which had been a point of major issue for the striking workers.
The new contract also includes the sign on bonus of $3000 cash with increased pay of 9.5% in year one and guaranteed increase of 23.5% over the life of the contract, and annual bonuses and Cost of Living Allowance on top.
Operations at Spirit's Wichita plant will continue to be suspended until the new contract is ratified.