Category Archives: Spirit AeroSystems

Update: Spirit AeroSystems’ engineering union recommends acceptance of new contract

July 6, 20094:04 p.m.

The negotiating team for Spirit AeroSystems‘ engineering union is recommending engineers accept the company’s offer of a new agreement.

The Society of Professional Engineering Employees in Aerospace represents more than 700 Spirit engineers. The company presented the union with its offer on Thursday.

SPEEA will mail out ballots to members on Friday. Officials will begin to tabulate them beginning at noon on July 23. In the meantime, the union will hold lunchtime meetings nearly daily to explain the offer and answer questions, said SPEEA Midwest director Bob Brewer.

The company and the union held fruitful discussions, said Spirit spokesman Ken Evans.

“We recognize that we needed to put forward an offer that was prudent in this economic time and also further align our package with the market,” Evans said.

Unlike previous offers, Spirit’s proposal offers wage pools using market benchmarks based on the overall market for engineers. It also includes a variable pay plan.

The good news is there remains a market for engineers around the country, Brewer said. “You just don’t see that going away.”

The plan also contains some risk.

“(The variable pay plan) could be very rewarding if the economy picks back up, and the company performs well,” Brewer said. But “it’s a little risk-reward factor put into this thing.”

The offer increases medical contributions on one health insurance plan, but decreases costs in another plan. Spousal co-payments were eliminated in the offer. But co-payments for office visits increase, Brewer said.

The offer included increases in life insurance and vision benefits.

By Molly McMillin | Filed under Spirit AeroSystems, Uncategorized, unions | Comments (2)

Engineering union negotiators to decide later today whether to recommend Spirit AeroSystems’ proposal

July 6, 200910:59 a.m.

The negotiating team for Spirit AeroSystems‘ engineering union is going over details of the company’s proposal of a new labor contract today to determine whether to recommend it to members when they vote.

The team is going through all the language and analyzing some costs, said Society of Professional Engineering Employees in Aerospace Midwest director Bob Brewer. A recommendation from the team is expected later this afternoon. The team may decide to recommend members accept the offer or reject it when they vote, or it may remain neutral on the offer.

Details of the vote are yet to be determined, Brewer said.

Spirit AeroSystems presented the union with its offer on Thursday. SPEEA represents more than 700 Spirit engineers. The current contract expires July 11, but provisions are in place to extend the existing contract if needed, the union said.

Unlike previous offers, Spirit’s proposal offers wage pools using market benchmarks based on the overall market for engineers. It also includes a variable pay plan.

The good news is there remains a market for engineers around the country, Brewer said. “You just don’t see that going away.”

The plan also contains some risk.

“(The variable pay plan) could be very rewarding if the economy picks back up, and the company performs well,” Brewer said. But “it’s a little risk-reward factor put into this thing.”

The offer increases medical contributions on one health insurance plan, but decreases costs in another plan. Spousal co-payments were eliminated in the offer. But co-payments for office visits increase, Brewer said.

The offer included increases in life insurance and vision coverage.

By Molly McMillin | Filed under Spirit AeroSystems, unions | Comments Off

Engineering union expects counterproposal from Spirit AeroSystems today

July 2, 200911:28 a.m.

Spirit AeroSystems‘ engineering union expects the company to present a counterproposal on a labor agreement today, the union said.

“We remain far apart on major issues,” officials of the Society of Professional Engineering Employees in Aerospace said in a memo. “While the company is showing signs that movement may be possible on some issues, negotiations are very difficult.”

The two sides are in the midst of negotiating a new contract for more than 700 Spirit AeroSystems engineers.

The current contract is scheduled to expire July 11. But provisions have been made to extend the contract if it’s necessary, the union said.

By Molly McMillin | Filed under Spirit AeroSystems, unions | Comments (3)

Boeing to buy Vought’s 787 operations, report says

July 1, 200911:29 a.m.

787-twoBoeing is planning to announce its intent to buy the 787 operations run by Vought Aircraft Industries in North Charleston, S.C. from the Carlyle Group, according to a report by FlightBlogger’s Jon Ostrower, which cites unnamed sources.

In the last two years, Boeing has worked to gain control over its supply chain for the troubled 787 program. The purchase may set the stage for a second final assembly line for the new 787.

Once an announcement is made, there will be a week-long transition to shift operational control of the facility to Boeing, the report said.

The transition will draw on the lessons learned after Boeing sold off its Wichita commercial operations to Onex Corp. in 2005, forming Spirit AeroSystems. Spirit is a key supplier to Boeing on the 787 program.

By Molly McMillin | Filed under Boeing, Spirit AeroSystems, suppliers | Comments (9)

Spirit AeroSystems engineering union presents counterproposal

June 30, 20092:05 p.m.

The union representing more than 700 Spirit AeroSystems engineers presented the company with a counterproposal on wage and benefit issues today.

The engineers are represented by the Society of Professional Engineering Employees in Aerospace. The current contract expires July 11.

Significant  differences still exist between the parties, the union told workers in a memo.

But “SPEEA is working diligently to arrive at an agreement that is of mutual benefit and our team is able to recommend to members,” it said.

Talks on Wednesday will focus around the final major issues.

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SPEEA: Talks with Spirit AeroSystems “grim and disappointing”

June 29, 200911:17 a.m.

Negotiations between Spirit AeroSystems and its engineering union continue this week, but the union has a tough challenge ahead of it, Midwest director Bob Brewer said this morning.

The contract between Spirit engineers and the Society of  Professional Engineering Employees in Aerospace expires July 11.

The talks took a “grim and disappointing” turn on Friday when discussions turned toward benefits and compensation, the union said.

“We were thoroughly surprised by the first run of the economic issues,” Brewer said.

SPEEA is continuing to work with the company, Brewer said.  He is hopeful talks will conclude this week.

By Molly McMillin | Filed under Spirit AeroSystems, unions | Comments (19)

Engineering union, Spirit AeroSystems continue talks

June 17, 200910:20 a.m.

solidaritydayLabor talks continue between Spirit AeroSystems and the Society of Professional Engineering Employees in Aerospace.

On Tuesday, Spirit management presented the company’s position on employee benefits, SPEEA said in an update.

The presentation made it clear that there are “difficult talks” ahead, it said. But “our team now has a starting point for benefits negotiations.”

Main table negotiations began last week.

Talks on benefits, including compensation, and the use of contract labor, still lie ahead.

SPEEA deemed today “Solidarity Day,” and asked all SPEEA-represented employees to wear red T-shirts to show their support.

The union represents about 700 engineers at Spirit AeroSystems. The current contract expires July 11.

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Signs of improvement in aerospace market

May 29, 20099:34 a.m.

Macquarie Research Equities has upgraded Spirit AeroSystems, Boeing, Honeywell, Goodrich, Triumph, TransDigm and United Technologies stock from Neutral to Outperform because of signs of improvement in airline traffic and air freight.

Improvements in April is a “convincing sign that the aerospace end markets have stabilized, and are likely to improve over the next six months,” said report today by Macquarie Research.

The aircraft financing market also appears to be improving. While the market remains tight, the increased role of government guarantors, such as the Ex-Im Bank in the U.S. and the backstop financing by manufacturers is helping. “With the capital markets seeming to have reopened, we think that this will improve the access to finance for new aircraft over time,” the report said.

By Molly McMillin | Filed under Boeing, Spirit AeroSystems, Uncategorized, aircraft manufacturers, aviation industry | Comments Off

Negotiations for Spirit AeroSystems engineers begin soon

May 7, 20092:23 p.m.

Spirit AeroSystems and its engineering union will begin main table negotiations June 9.

The contract with the Society of Professional Engineering Employees in Aerospace’s Spirit Wichita Engineering Unit expires July 11.

SPEEA’s negotiating team are meeting in subcommittees with Spirit management.

The union is urging Spirit engineers to wear their red SPEEA T-shirt every Friday in a show of unity.

By Molly McMillin | Filed under Spirit AeroSystems, unions | Comments Off

Sub hunter P-8A Poseidon completes first flight

April 27, 200911:22 a.m.

Boeing’s P-8A Poseidon test aircraft made its first flight on Saturday, the company said.

The plane’s fuselage was built in Wichita by Spirit AeroSystems. The P-8A is a derivative of Boeing’s 737-800. The Navy plans to buy 108 P-8As to replace its fleet of P-3C aircraft.

During the flight, it performed a series of flight checks, reached a maximum altitude of 25,000 feet and landed after three hours, 31 minutes in the air.

“This is a significant accomplishment for the P-8A team, as it moves us one step closer to delivering the next maritime patrol and reconnaissance aircraft to the warfighter,” Capt. Mike Moran, P-8A program manager for the U.S. Navy, said in a statement.

Before take-off, the P-8A team completed a limited series of flight checkings, including engine starts and shutdowns. During the flight, test pilots performed airborne systems checks including engine accelerations and decelerations, autopilot flight modes and auxiliary power unit shutdowns and starts.

Formal flight testing by a Navy/Boeing team will begin during the third quarter of 2009.

Boeing describes the P-8A as a  “long-range anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft.”


By Molly McMillin | Filed under Boeing, Spirit AeroSystems | Comments (1)