This is good news for everyone if it goes through.
WASHINGTON, June 27 (Reuters) – Spirit AeroSystems and its machinists union reached a tentative contract agreement on Tuesday, with about 6,000 workers set to vote Thursday on whether to end a strike at the company’s plant in Wichita, Kansas.
The four-year contract includes wage increases of at least 23.5% over the life of the deal, guaranteed annual bonuses and a yearly cost of living adjustment, and a $3,000 signing bonus if the contract is accepted by Thursday, Spirit said in a statement.
If passed by a simple majority, employees represented by the International Association of Machinists and Aerospace Workers (IAM) would end the strike and return to work on July 5, the union said.
As I noted the other day, the last thing anyone needs right now is yet another hiccup in the 737 supply chain. I didn’t change the forecast for the MAX when I heard about the strike because I assumed we’d see a quick resolution. Investors seem to like the new deal, too. Spirit’s stock price has almost fully recovered from its June 22 low.
Updated: The union approved the new contract by vote and will return to work on July 5th. The plant has been closed since June 22.
A lifelong aviation enthusiast, Douglas Royce is currently co-editor of four of Forecast International's Market Intelligence Services: Civil Aircraft Forecast, Military Aircraft Forecast, Rotorcraft Forecast, and Aviation Gas Turbine Forecast. As such, he plays a key role in many important projects that involve market sizing and forecasting for various segments of the world aerospace industry, as well as demand for related systems.
