Machinists reject contract, vote to strike; Spirit AeroSystems will suspend production

Mesh fences, mobile headquarters go up as Machinists, Spirit AeroSystems prep for strike

Local Machinists union members have voted to strike rather than accept the terms of a proposed four-year contract with Spirit AeroSystems.

Soon after the vote was announced late Wednesday, Spirit said it planned to suspend production at its Wichita factory before the current contract expired. Beginning with Thursday’s first shift, IAM-represented employees were asked not to report to work, although they will receive pay for regularly scheduled work hours. Non-union employees were asked to report to work as usual Thursday.

The renegotiated contract was rejected 79% to 21%, and 85% of members voted to initiate a strike, exceeding the required two-thirds supermajority.

“After 13 years without a fully negotiated accord and years of working to keep Spirit AeroSystems a player in the game, approximately 6,000 members of the International Association of Machinists and Aerospace Workers (IAM) District 70, Local 839 have voted to reject Spirit’s last best and final offer,” the union said in a release late Wednesday evening.

A strike is scheduled to begin at 12:01 a.m. Saturday, immediately after the existing contract expires.

“We are disappointed that our employees represented by the International Association of Machinists and Aerospace Workers in Wichita have rejected our four-year contract offer and have voted to strike,” Spirit said in a statement. “We believe that our fair and competitive offer recognizes the contributions of our employees and ensures we can successfully meet increasing demand for aircraft from our customers.

It went on to say: “We know that no one wins in a work stoppage; however, we respect the rights of our represented employees. Despite this setback, we are not distracted from the task at hand. We look forward to continued meetings with IAM leadership.”

Spirit stock was down 9.5% Thursday afternoon as investors reacted to the news.

None of the dozens of union workers approached by Eagle reporters at Hartman Arena throughout the day Wednesday said they supported the contract.

“That front page of that contract, everybody, when I first read it, I thought, ‘Yeah, that looks good,’ but then when I started dissecting it all and putting the numbers together, it got really bad really quick,” said Steven Espinosa, who voted against the contract and in favor of a strike.

The proposal totaled up to 34% wage increases before yearly compounding, but a number of workers interviewed said the guaranteed 16% pay raise over four years was far less appealing.

Numerous union members said they were concerned with changes to the company’s Core healthcare plan. Though the offer highlights minimal copay increases and reduced out-of-pocket maximums, workers repeatedly said the new deal would put their medications in jeopardy.

“There was over 1,000 prescriptions covered originally. Now it’s going down to like 400,” said T.J. Tovar. He said he already pays more than $600 a month for his family healthcare plan that covers him, his wife and three children. Under the rejected contract, he would pay out of pocket for prescription Adderall he can currently get filled for $1.68.

“Every single medication I take for diabetes is off the list,” Espinosa said. “Now, I have to find all these medications, and it took a while to get those medications right. If this contract is accepted, I’m gonna have to start all over.”

Union members previously voted in March to authorize a strike option if favorable terms could not be reached. The rejected contract was recommended by union leaders after a month and a half of negotiations with Spirit.

John Akers has worked at Spirit since 1986. On Wednesday, he voted to strike, just as he did in 1989 and 1995, even though he said he doesn’t hate everything in the renegotiated contract.

“There are some good provisions that have been made,” Akers said.

“They’re doing a small fraction of matching in our 401k. That’s nice. That’s the future really if you want to retire.”

But he was less impressed with the one-time contract ratification bonus that offered workers $2,500 cash and $5,000 in company stock.

“They offered $5,000 worth of Spirit stock, which, if I wanted Spirit stock, I’d just go buy it,” Akers said. “They could have just had that cash in a signing bonus. Probably would have helped a lot of people just vote yes really.”

Michael Morgan, another pro-strike member, said he expects picketing to send a powerful message to company executives.

“Daily for us, we will be on the picket line,” Morgan said. “We will be out there making our voice heard, letting them know. They will see this crowd of all their workers standing out here supporting each other to fight for our rights.”

“This isn’t the last contract we’ll be fighting for, so I feel like if we’re heard now, if we stand our ground now, it’ll pay dividends for the future,” said Adrian Bolder.

Tovar said Spirit’s ongoing diversification efforts, including more defense work with the U.S. Armed Forces, means it’s not just Boeing and Airbus that could feel the effects of a labor stoppage.

“Uncle Sam doesn’t want a late shipment on a plane,” he said.

What comes next?

On Thursday, IAM leadership was polling membership to determine which specific provisions in the re-negotiated contract they want to see changed.

At the request of both Spirit and IAM, a federal mediator has been assigned to oversee negotiations, but a timeline for reconvening has not yet been established.

“We hope to get back to the bargaining table within the next few days,” said Rickey Wallace, IAM General Vice President of the Southern Territory.

Wichita Mayor Brandon Whipple, who is currently in Paris, France, attending an airshow with a local delegation that included Spirit executives, said in a statement that he has been in communication with representatives from the company and the union.

“I know that both sides are committed to getting back to the table and making a deal that addresses the needs of the employees so they feel valued,” Whipple said.

“Global companies know that we have the best advanced manufacturing workforce in the world. As Mayor, my focus is bringing both sides together to find a contract that works for everyone so folks can get back to work.”

In a Thursday Facebook post, District 1 City Council member Brandon Johnson called on resident to support the striking workers.

“Thousands of our fellow Wichitans have chosen to reject one contract offer from Spirit AeroSystems and strike until they receive what they feel is a better offer that meets the needs they have in this new environment,” Johnson said. “I would hope we as a community can rally around them and their families during this time. It is always difficult when you speak or stand up for yourself and it can have a negative impact on family when you feel you deserve better than you are currently getting.

“Many of these individuals or their immediate families may be struggling today wondering what may happen next. Sending a message of support can also go a long way to helping. Unions do the hard and stressful work that provide so many benefits to all employees, even the ones who have chosen not to join (You should join). Sometimes that work looks like a strike, and sometimes it looks like sitting at the table together to understand that the employees are the backbone of any business and that has to be recognized.”

Contributing: Casey Loving of The Eagle