Spirit AeroSystems Faces Production Suspension Amidst Contract Negotiations with Union

Spirit AeroSystems, a major supplier of aerospace components to leading plane makers, has encountered challenges during contract negotiations with District 70, Local Lodge 839 of the International Association of Machinists and Aerospace Workers (IAM). The company will suspend production starting June 22, 2023, as an agreement with the union remains elusive.

The IAM, representing around 6,000 of Spirit’s employees at its Wichita, Kansas facility in the United States, began negotiating a new labor agreement on May 1, 2023, as the current contract’s expiration date approached on June 23, 2023, at 11:59 PM local time.

However, the proposed contract was met with strong opposition, as 79% of the local IAM members voted against it. In response to the company’s failure to offer an acceptable labor contract, 85% of the members approved a strike, leading Spirit AeroSystems to implement a preemptive stoppage of work at the Wichita site.

In an official statement, Spirit expressed disappointment over the rejection, asserting that their four-year contract offer was fair and competitive, recognizing the contributions of their employees and addressing the increasing demand for aircraft from customers.

Following negotiations, the union and the company reached a tentative contract agreement on June 16, 2023. The members voted on whether to approve the four-year agreement on June 21, 2023, with the labor collective announcing the results on June 22, 2023.

After a 13-year contract, District 70, Local Lodge 839 of the IAM acknowledged that it had heard its members and expressed willingness to return to the bargaining table to address their concerns.

Despite the work stoppage setback, both parties remained committed to resolving the issues at hand. Spirit AeroSystems emphasized its dedication to the task while respecting the rights of its represented employees.

Spirit AeroSystems holds a significant role as a Tier 1 supplier for various Airbus and Boeing programs, as well as several Bombardier private jets. The company specializes in fuselage systems, propulsion systems, and wing systems.

The IAM stated that its members are responsible for producing 70% of Boeing’s narrow-body aircraft and defense and business jet structures. In a related incident, an employee of Spirit AeroSystems noticed an irregular production procedure concerning the vertical fin attach fittings of specific models of the 737 fuselage in April 2023. This discovery resulted in Boeing postponing some 737 MAX deliveries and negatively impacted the company’s financial performance in Q1 2023 and 2023.