Approximately 1,600 former employees of Spirit AeroSystems have reached a tentative labor agreement with Boeing, following the aircraft manufacturer’s acquisition of Spirit AeroSystems on December 8, 2023. The agreement, which was unanimously recommended by the negotiation team, promises enhanced benefits and salary increases for the workers.
The deal includes improvements to medical and dental benefits, increased vacation time, and a significant boost in wage pools, marking a notable shift for these employees. As reported by KWCH, this agreement aligns the benefits of these workers with those of other Boeing employees, both union and non-union.
Details of the Agreement
The collective bargaining agreement outlines a 20% increase in wage pools over a span of 58 months. Under this provision, employees will receive a minimum annual raise of approximately 2%, supplemented by potential raises based on annual performance reviews. The wage pools will see scheduled increases, including a 5% rise in July 2026, followed by 3.5% in March 2027, 4% in March 2028, 3.5% in March 2029, and another 4% in March 2030.
Promotional funds will also be increased by 50%, with annual increases of between 0.50% and 0.75%, and unspent promotional funds will roll over into the following year.
James Hatfield, chair of the negotiation team, emphasized the positive impact of the offer, stating, “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.”
Additional Benefits and Voting Process
In addition to salary and benefits enhancements, the agreement includes a $6,000 ratification bonus, which employees may opt to deposit into their 401(k) accounts, subject to IRS limits. Performance-based payouts are expected to rise to around 7%, an increase from the current 6%, while the maximum payout will increase from 12% to 14%. Starting in 2027, employees will receive a 10% match on their 401(k) contributions, provided they also contribute to their retirement plans.
Vacation days will see an enhancement as well, with employees eligible for an average of six additional paid days off each year, depending on tenure. This includes floating holidays, parental leave, military leave, and adoption leave. Changes to medical insurance could result in annual savings of up to $7,000, depending on the selected plan.
The negotiation team noted that this proposal addresses most of the key points they aimed to cover, and they strongly encourage all represented members to approve the offer. Voting will take place electronically through a secure system until 5:00 PM on January 30, 2024. A simple majority vote is required for approval.
If ratified, the new terms are expected to take effect on February 1, 2024. The Society of Professional Engineering Employees in Aerospace (SPEEA) currently represents these employees, who primarily hold non-engineering roles at Boeing’s Spirit AeroSystems operations in Wichita.
The SPEEA also represents around 1,000 engineers at Boeing Wichita, who have already ratified separate agreements earlier this year. Overall, SPEEA represents approximately 19,000 engineers and technical workers across various Boeing sites in the United States.
The acquisition of Spirit AeroSystems was part of Boeing’s strategy to regain control over its supply chain and address quality and safety issues that had emerged in recent years. This agreement marks a significant step toward enhancing production oversight and stability within the company.
