Spirit AeroSystems, Workers Union Agree On New Contract Proposal That May End Strike At Wichita Plant

Spirit Aerosystems Holdings, Inc. SPR unit Spirit AeroSystems and the International Association of Machinists and Aerospace Workers have agreed to a four-year contract proposal for wage increases and bonuses, an indication to end the strike at the company's plant in Wichita, Kansas.

IAM union members will vote on approval of the contract on Thursday, June 29, at Hartman Arena in Park City, Kan. Operations at Spirit's Wichita plant will continue to be suspended until the new agreement is ratified.

The contract includes a total wage increase of 9.5% in the first year, a guaranteed increase of 23.5% throughout the contract, annual bonuses, and cost of living allowances.

"We believe this new offer is fair and competitive and recognizes the contributions of our employees...," said Tom Gentile, President and CEO of Spirit AeroSystems.

The new contract terms also include no mandatory weekend overtime and a sign on bonus of $3,000 cash.

The new proposed contract resulted from the negotiations that began this past Saturday between the company and IAM officials. 

The Federal Mediation and Conciliation Service mediated the bargain to reach the deal.

Price Action: SPR shares are trading higher by 1.67% to $29.75 in the premarket session on the last check Wednesday.