Textron Aviation's machinist union members have agreed to a new contract and will end the labor strike that began on September 23 at its Wichita facilities.
The International Association of Machinists and Aerospace (IAM) Workers District 70, Local Lodge 774 ratified the new five-year agreement on Sunday. The OEM is now working to welcome back its employees who have been on strike, starting on Wednesday.
“We are pleased to have ratified a contract with the IAM that offers our employees, their families, and the Wichita community a shared future,” said Textron Aviation president and CEO Ron Draper. “We value our workforce and the work they do, and this agreement reflects our commitment to our team. The ratification of this contract marks a new chapter, and we are eager to move forward together."
Among the key points of the new labor agreement are maintaining major manufacturing operations in Wichita, a 31% general salary increase over the five-year life of the contract with an immediate 11% increase upon ratification; cost-of-living adjustments that double from the previous contract to $1,500 a year; a guaranteed $3,000 annual lump sum payment per employee; a new pay scale for long-tenured employees; and an increase of the company match to 9% in its 401(k) savings plan.
In addition, the agreement caps insurance plan premium increases for its low- and high-deductible health care plans. It ensures no insurance premium increases through 2029 for its no-deductible health plan with free services at its Plane Healthy Wellness Centers and pharmacy locations including primary care visits, preventive care, mental health care, health coaching, physical therapy, labs, and X-rays.
About 5,000 IAM members went on strike after they rejected a previous contract proposal for a 26% wage hike over four years. Members had voted to reject that contract by 81%. Strikers represented workers at Textron Aviation's east and west campuses, as well as service center, in Wichita and component manufacturing locations.