Wichita machinists, Onex reach deal

Union to recommend contract to workers

? A contract proposal for more than 4,000 machinists employed at the former Boeing Corp. commercial aircraft division in Wichita is headed to workers with their union’s recommendation for approval.

Negotiators for the International Association of Machinists and Aerospace Workers and Mid-Western Aircraft Systems, a unit of Onex Corp. that completed the acquisition of The Boeing Co.’s commercial aircraft plant in Wichita last week, reached tentative agreement late Thursday night on a five-year offer. Workers are scheduled to vote today.

Union negotiators said they would unanimously recommend ratification of the deal, which includes a 10 percent cut in what its members made working for Boeing. However, there are a series of guaranteed wage increases later in the five-year contract, as well as a chance for equity in the company.

Before the sale was completed, union members voted down a proposal from Onex. The Canadian investment firm then said it would put the pay cut into effect anyway, and it took off the table a stock ownership provision and the union pension plan.

Negotiators resumed contract talks on Monday, facing a deadline of Thursday at midnight.

The pension plan and an equity participation plan were restored to the proposal that workers will consider today. Nigel Wright, Onex managing director, said they were put back in the offer Thursday in recognition of the “partnership being offered to us.”

Without those provisions, the union would not have recommended ratification, said Dick Schneider, aerospace coordinator for the machinists union.

Schneider and Wright said a new provision in the offer was an apprenticeship program to train machinists.

Ratification of the contract requires a simple majority of those who vote. If the contract were rejected, there would be a second vote on a strike, which would require two-thirds approval.

The equity participation plan would provide workers with stock when certain triggering conditions are met. Wright said it gave them “a stake in the new company.”

Schneider said the union was going to “forge ahead together in this new beginning with the new company as partners.”

The week before the sale was completed, members of the International Brotherhood of Electrical Workers accepted a five-year contract with Onex. Still to be settled is a contract for the Society of Professional Engineering Employees in Aerospace, with talks due to resume Monday.