Machinists Reject Textron Aviation’s Contract Offer, Vote To Strike

Machinist union members at Textron Aviation overwhelmingly rejected the company’s offer of a new four-year contract Sept. 21 and voted to strike.

The International Association of Machinists and Aerospace Workers represent about 5,000 hourly workers at Textron Aviation in Wichita.

In rejecting the offer, they turned down a 26% wage increase over the life of the contract, $3,000 in lump sum payments in each of the four years and other benefits. Union negotiators had recommended members accept the offer, calling it “one of the best contracts in decades.”

For members, the main sticking points are pay, healthcare and job security, union officials say.

The current contract expires at 12:00 a.m. on Monday, Sept. 23 when the strike begins. Negotiations began Aug. 12.

The last time the Machinists struck the company was in 2008, when they struck at Hawker Beechcraft. That was before it became part of Textron Aviation in a merger with Cessna Aircraft, a Textron Inc. division, In 2014. The strike lasted for 25 days.  

“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 wellbeing and livelihoods of all workers,” the union said in a statement following the vote results.

Textron Aviation officials say the company is “disappointed” that the union did not vote to accept its proposal of a four-year contract and chose instead to strike.

“The contract offer, which took six weeks of thoughtful and good-faith negotiations by both the union and the company negotiating committees, provided a plan that aimed to protect the future of all Textron Aviation employees and the Wichita community,” the company says in a statement. “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.”

Both sides say they are committed to returning to the bargaining table.

“Textron Aviation is 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,” it says.

Business jets are assembled and delivered from Wichita facilities. With 5,000 of its roughly 14,000 or so employees on strike, the work stoppage will have an impact on the company, although how much will depend on its length.

Jefferies analyst Sheila Kahyaoglu estimates the company delivers about 15 business jets per month. Each month of a work stoppage without deliveries would mean an estimated $300 million hit in revenue to the company and about a $35 million impact on earnings, she tells Aviation Week. That assumes a $20 million average sale price with a 10% margin, she says.

At a union rally ahead of the vote, several union members told Aviation Week that they were seeking competitive wages and benefits.

“The cost of living is outrageous,” said one of the members at the solidarity rally. Another agreed. “We’re trying to survive,” he said, “but the cost of everything keeps going up.” 

Highlights of the rejected offer included an 11% wage increase upon ratification, a 4% wage increase in 2025, a 5% wage increase in 2025 and a 6% increase in 2027. It offered a guaranteed $3,000 lump-sum payment in each of the four years, new annual longevity pay beginning with five years of service and increases in cost-of-living maximum pay. The prior contract was reached in 2020—however, Textron Aviation increased wages 6.5% in 2022 beyond the contracted wage increase.

It also increased the company’s 401K contribution and added an additional $1.50 per hour in “technical pay” for employees holding jobs requiring a special skill set to perform and a $2.00 per hour in “license pay” for those holding an eligible license to perform their jobs, such as an Airframe & Powerplant license.