Textron Aviation Strikers to Vote on New Contract Deal
Textron Aviation workers who have been striking since September are set to vote on an improved contract offer aimed at resolving the industrial action that has impacted production. After weeks of negotiations, the International Association of Machinists and Aerospace Workers (IAM) District 70, Local Lodge 774, announced on October 16, 2024, that Textron had presented an “updated offer” following renewed talks.
Textron Aviation detailed the revised contract terms in a public statement on October 17, 2024, emphasizing an increase in the General Wage Increase (GWI) rate and other enhancements. The company stated that the union members would have the opportunity to review and vote on the new proposal over the upcoming weekend.
The revised contract increases the previously proposed GWI from 26% to 31% over the next five years, including an additional 4% wage increase granted in 2022 during high inflation. Additionally, the improved contract offer includes a $3,000 lump sum payment each year for the duration of the contract, totaling $15,000 per employee. This financial boost aims to address workers’ calls for more competitive compensation and reflects Textron’s response to employees’ demands for improved financial security.
To further meet workers’ needs, Textron has proposed significant adjustments to its health benefits. In a gesture to control healthcare costs, the updated contract imposes a cap on health insurance premium increases and maintains premium-free access to the company’s no-deductible health plan through 2029. This health plan stability offers a notable relief for employees, particularly after the union’s announcement in September that the company would stop health insurance for striking employees beginning October 1.
The improved contract also includes a cost-of-living adjustment (COLA), with an annual cap raised from $700 to $1,500, addressing inflation concerns and ensuring that wages keep up with rising living expenses. Another new addition is longevity pay, which rewards long-term employees, underscoring Textron’s intent to retain and recognize their dedication to the company.
Todd McKee, Senior Vice President of Integrated Supply Chain at Textron, expressed the company’s commitment to its workforce and the importance of the contract vote. “We value our Textron Aviation team and remain committed to signing an agreement that recognizes our employees’ contributions and sets us all up for long-term success,” he said. McKee urged eligible employees to participate in the vote, underscoring the significance of each individual’s input in shaping the future of the workforce.
Textron Aviation workers initially went on strike when their previous contract expired on September 22, 2024. The strike, organized by IAM Local 774, led to halted production and highlighted workers’ concerns over compensation, benefits, and job stability. By offering an extended contract term and enhanced benefits, Textron aims to address the employees’ demands and secure a stable agreement that fosters workforce satisfaction and productivity.
This upcoming vote marks a critical moment for both Textron and its workforce, as a ratified contract could restore normal operations and strengthen the relationship between the company and its employees. For Textron, an agreement would mean renewed focus on production and stability for its supply chain and workforce, ultimately benefiting the aviation industry at large.
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