Around 1,600 former Spirit AeroSystems workers have reached a tentative labor agreement with Boeing, following the acquisition of Spirit AeroSystems by the aircraft manufacturer on December 8, 2023. The negotiating team has unanimously recommended that all members approve this agreement, which promises enhanced medical and dental benefits, additional vacation time, and salary increases.
The offer includes a significant 20% increase to current wage pools over a 58-month period. Workers will now receive a minimum annual raise of approximately 2%, alongside potential increases determined by annual performance reviews. Additionally, wage pools will see further increases of 5% in July 2026, 3.5% in March 2027, 4% in March 2028, 3.5% in March 2029, and 4% in March 2030.
James Hatfield, chair of the union’s negotiation team, stated, “Boeing’s offer gives us better medical benefits, better dental benefits, more vacation time, and a decent set of salary pools for raises. We will be joining other unions and Boeing non-union employees in enjoying the Boeing benefits; that’s why I would vote for approving this contract.”
Enhanced Benefits and Compensation Structure
Additional benefits under the agreement include a $6,000 ratification bonus, which employees can opt to contribute to their 401(k) plans, subject to IRS limits. Performance payouts are projected to increase to around 7%, up from the current 6%, with the maximum payout rising from 12% to 14%. Beginning in 2027, all employees will receive a 10% match in their 401(k) contributions if they also contribute to their retirement plans.
Vacation days will be expanded, with employees eligible for an average of six additional paid days off per year based on tenure. This will complement existing leave policies, including floating holidays, parental leave, military leave, and adoption leave. Amendments to medical insurance will allow workers to save up to $7,000 annually, depending on their selected plan.
The negotiation team, representing the former Spirit AeroSystems workers, believes this proposal addresses the key issues they sought to improve. Members have until 17:00 on January 30, 2024, to review and vote on the proposal, which will be conducted electronically through a secure voting system. A simple majority of dues-paying members will be needed for approval, after which the terms are expected to take effect on February 1, 2024.
Impact of Boeing’s Acquisition
The Society of Professional Engineering Employees in Aerospace (SPEEA) currently represents over 1,600 aerospace professionals at Boeing’s operations in Wichita, primarily in non-engineering roles. SPEEA also represents approximately 1,000 engineers at Boeing Wichita, who have finalized separate bargaining agreements earlier this year. Overall, SPEEA advocates for around 19,000 engineers and technical workers across Boeing facilities in several states, including Washington, Oregon, Kansas, California, and Utah.
Boeing’s acquisition of Spirit AeroSystems is part of a strategic move to regain control over its supply chain, particularly for critical aircraft components. This decision comes in response to previous quality and safety challenges, aiming to enhance production stability and safety protocols by reducing reliance on outsourcing.
As the vote approaches, the focus remains on ensuring that all represented workers are informed and prepared to make a decision that could significantly impact their futures within the aerospace industry.
