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Thu, Oct 14, 2010

HBC Machinists Contract Includes Ten Percent Pay Cut

But Keeps Most Union Jobs In Wichita

An offer on the table for the machinists union at Hawker Beechcraft includes a 10 percent pay cut, but also pledges to keep most union jobs in Wichita. The union vote is Saturday, and union leadership is recommending a vote for the contract.

Base pay for union jobs at the Wichita facility would range from $12.07 to $28.94 per hour, according to the summary document.

In a statement, the union negotiating committee called the negotiations "extraordinary ... during extraordinarily bad times."

"We have worked toward a commitment to keep jobs in Wichita, while competing against other states who wished to poach our jobs, with a company fighting for survival, too. Although there are concessions, we made huge improvements in job security," the statement, which is attached to a summary of the contract, reads.

"Last week, the reality is that the plant teetered close to being gone forever. Our brothers and sisters in Salina can tell us how real it is. The Governor gave us a second chance to save the jobs," the statement continues. "This contract protects two-thirds of the bargaining unit jobs. While the concessions are a hard pill to swallow, we keep jobs here for the long term. Of the jobs we have secured, the State of Kansas will have a guarantee for these jobs. When the market comes back, we can grow again. For those who will lose jobs in the coming months, the State of Kansas will provide tuition assistance for retraining."

In a separate statement regarding the contract proposal, Hawker CEO Bill Boisture called the vote a "defining moment" in the history of the company.

“Hawker Beechcraft and the union understand that its members play an important role in helping our business adjust to meet the harsh realities of a changed global economy and a changed market for business and general aviation products," Boisture wrote. "The fact that we are having a contract discussion almost a year before the expiration date of the existing agreement is a very significant reflection of that understanding and our shared sense of urgency.

“We have implemented cost-cutting measures throughout the company and improved business processes in an effort to work more efficiently. Our efforts to build a stronger company are ongoing, with the proposed union contract being just one piece of several initiatives in work. The proposed contract is being offered concurrent with a reduction of 350 people from the salaried ranks of the company, which will be implemented no later than November 1.

“Earlier this month, the State of Kansas took decisive action to lend its support to aviation manufacturing here in Wichita and to Hawker Beechcraft specifically. If we can combine this investment and the positive changes we have already made with a new, long-term union agreement that aligns the compensation of all of our employees; we will be in a much more stable position to sustain a Kansas and American benchmark. Our presence here in Wichita will be smaller, but the remaining people will be better trained and equipped for the realities of global competition. We will work together to form a solid foundation to build on when our markets grow once again."

FMI: www.hawkerbeechcraft.com, www.ll733iam.com

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