Washington, D.C., November 28, 2006 – Nearly 4,000 members of the International Association of Machinists and Aerospace Workers (IAM) in Wichita, KS, will divide approximately $246 million in cash and stock following the initial public offering (IPO) of Spirit AeroSystems stock on the New York Stock Exchange.
Eligible IAM members employed by Spirit AeroSystems in Wichita, KS, will each receive $61,440 as part of a unique Union Equity Program (UEP) negotiated by union leaders following the sale of Boeing’s Wichita operations in 2005. IAM members formerly employed by Boeing ratified a new contract with Spirit in 2005 that included the UEP in exchange for nearly $200 million in wage and benefit modifications.
“The distribution of approximately $246 million represents a significant offset to the wage and benefit modifications that followed the sale of Boeing’s Wichita operations,” said IAM General Vice President Bob Martinez. “Not only did we preserve jobs in the wake of a major corporate restructuring, we also negotiated terms that ensured our members would share in the success of the acquiring company.”
To limit the tax burden on members, the payout will take place in two parts. The cash portion of the distribution, approximately $34,556 or 56 percent of the total payout, will take place before the end of December 2006. The remaining $26,884 in stock awards will be made available in March of 2007.
“The benefit of this kind of equity sharing program extends far beyond IAM members and their families,” said Steve Rooney, President of IAM District 70 in Wichita. “Long after bills are paid and new vehicles are purchased, the local economy will continue to experience the long-term economic lift that only comes with high-value, high-wage jobs.”
The IAM is one of the largest industrial unions in North America, representing nearly 700,000 active and retired members in dozens of industries. For more information, visit the IAM website at www.goiam.org.
