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Spirit AeroSystems engineers approve new four-year union contract

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Spirit AeroSystems engineers approve new four-year union contract
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Spirit AeroSystems and the Society of Professional Engineering Employees in Aerospace (SPEEA) have reached a new four-year contract agreement for engineers at Spirit's Wichita, Kansas site. The SPEEA announced on November 25 that over 1,000 engineers represented by the union now have this new contract.

The vote for the contract saw participation from 478 dues-paying members of the Wichita Engineering Unit (WEU) of SPEEA. The agreement was narrowly approved with 249 votes in favor and 229 against. The contract will be effective from December 2, lasting until December 1, 2028.

"The agreement will increase the amount of money available for wage increases for Spirit engineers by at least 23%, including the promotional fund, over four years – with a provision for greater raises if needed to match labor-market conditions." Additionally, there is a guaranteed minimum bonus of 5% in spring 2025 and increased contributions to employees' 401(k) funds in 2026.

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This new contract prevents another strike after Spirit AeroSystems faced a work stoppage in June 2023 when employees represented by the International Association of Machinists and Aerospace Workers (IAM) went on strike. That issue was resolved quickly with production resuming by July.

If WEU had gone on strike, it might have affected Boeing's supply chain already impacted by previous labor actions. Boeing CFO Brian West stated during an earnings call that Boeing managed limited impacts from past disruptions but acknowledged challenges in restarting supply chains post-strike.

The new WEU contract covers roles such as quality engineer, systems engineer, material review engineer, certification/regulatory compliance engineer, structural analysis engineer among others.

Over recent years, Spirit AeroSystems has struggled financially due to rising costs and reported significant losses in its Q3 results. However, both Airbus and Boeing recently bolstered Spirit's liquidity with over $450 million through credit lines and advance payments agreements.

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