On Saturday, September 21st, members of the International Association of Machinists and Aerospace Workers (IAM) District 70, Local Lodge 774 voted against a final labor contract offer received from Textron Aviation. Over 80% of the machinist union members voted to strike, ultimately voting against the proposed contract. The current agreement expires at midnight on Sunday, September 22nd, meaning that Textron Aviation workers will officially begin their strike on Monday, September 23rd.
Proposed labor contract
Textron Aviation, the parent company of popular general aviation brands Cessna and Beechcraft, proposed its final labor contract offer on Wednesday, September 18th. This contract made several improvements to the wages of union members. For example, a 26% general wage increase was added for the lifetime of the contract. This includes the following increases:
- 11% immediate raise once the contract is ratified
- 4% wage increase on September 21, 2025
- 5% wage increase on September 20, 2026
- 6% wage increase on September 19, 2027
These increases were to be made on top of the 4% general wage increase that was added in 2022. Additionally, Textron Aviation proposed several other improvements, such as a $3,000 guaranteed lump sum payment for each year of the contract, a cost of living adjustment increase from $700 to $1,500 per year, and a 401K match increase to 9% total. The Wichita, Kansas-based company also proposed a zero percent increase to its no-deductible plan health insurance premium, and it also capped increases to its low and high deductible premiums at 3% per year.
Photo: Lithium366 | Shutterstock
Upon learning of the rejected labor contract, Textron Aviation released an official statement saying,
“No one benefits from a strike, and the company has made every effort to avoid one. However, as would be expected of any responsible business, the company has prepared for this scenario to ensure the business continues to operate for customers. Textron Aviation is as committed as ever to collaborating and agreeing upon a contract with the IAM that acknowledges employees’ contributions and sets all up for long-term success.”
Rejection of the labor contract
Textron Aviation was confident that its proposal was positive for both sides of the agreement. However, many union members believed that although Textron Aviation was improving general pay, the company was taking away from other aspects of the contract. Some believe that Textron Aviation could have improved its insurance and child support offerings. Others wanted a higher increase in pay to help deal with inflation and rising living costs over the past several years.
Photo: Textron Aviation
The IAM District 70, Local Lodge 774 released an official statement after the contract was rejected. This statement read,
“As a united front, IAM Local 774 members are pursuing improved pay rates, healthcare, and job security after having voiced their concerns regarding compensation and benefits, highlighting the pressing need for enhancements to ensure the well-being and livelihoods of all workers. The IAM looks forward to returning to the table with Textron Aviation leadership to work on an equitable agreement for both parties.”
Textron Aviation and IAM Local Lodge 774 have both mentioned that they are eager to return to the negotiating table. However, no date for negotiations has been set. Although over 5,000 employees are set to strike, Textron Aviation told its employees that it does not see an urgent need for furloughs or unpaid work for the remainder of the employees in the near future.