Air Capital Insider

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.

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.

Labor 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.