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Boeing Ratifies New Labor Deal with Wichita White-Collar Workers

Boeing secures a 5-year labor agreement with 1,600 Wichita white-collar workers, enhancing wages, benefits, and retirement plans.

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This article summarizes reporting by Reuters and publicly available elements.

Boeing Secures Labor Peace with Former Spirit AeroSystems White-Collar Unit

Boeing has successfully ratified a new labor agreement with a critical unit of white-collar workers at its Wichita, Kansas facility, marking a significant step in the reintegration of Spirit AeroSystems. According to reporting by Reuters, the deal covers approximately 1,600 employees represented by the Society of Professional Engineering Employees in Aerospace (SPEEA).

The agreement, ratified on January 30, 2026, formally brings these workers back under Boeing’s employment structure following the company’s $4.7 billion re-acquisition of Spirit AeroSystems in December 2025. The union confirmed that the contract was approved by a wide margin, with 85.8% of voting members casting ballots in favor of the proposal.

This development is viewed as a stabilizing win for Boeing as it navigates a complex “turnaround year” in 2026. By securing a long-term contract with this technical unit, which includes supply chain agents and quality analysts, Boeing aims to avoid the labor friction that characterized much of 2024 and focus on ramping up production rates.

Core Terms of the New Agreement

The ratified contract, which spans nearly five years and expires in late 2030, offers significant financial improvements over the previous terms these workers held under Spirit AeroSystems. Data released by SPEEA and analyzed by Leeham News highlights a shift from variable, market-based raises to guaranteed increases.

Wage and Benefit Enhancements

Under the new terms, the Wichita Technical & Professional Unit (WTPU) will see a 20% increase in salary pools over the life of the contract. Notably, the deal introduces a guaranteed minimum annual raise of 2% for every employee, a protection that did not exist in their prior contracts. Immediate financial benefits include:

  • A $6,000 ratification bonus for each member.
  • A 5% aggregate wage pool increase scheduled for July 10, 2026.

Retirement and Healthcare

One of the most substantial changes involves retirement benefits. Starting in 2027, Boeing will provide a 100% 401(k) match on the first 10% of employee contributions. This is a significant enhancement compared to standard market rates. Additionally, the transition to Boeing’s medical and dental plans in 2027 is projected by the union to save the average employee approximately $3,100 annually in premiums.

“The average WTPU-represented worker will be making more than $117,000 a year when this contract is done in 2030… We will be joining other unions and Boeing non-union employees in enjoying the Boeing benefits.”

, James Hatfield, Chair of the WTPU Negotiation Team (via SPEEA statement)

Strategic Context and Analysis

The reintegration of the WTPU is more than a standard labor negotiation; it is a pivotal component of Boeing’s broader strategy to stabilize its supply chain. These workers, who manage logistics, quality control, and business operations, are essential to the factory floor’s daily function.

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AirPro News Analysis

We view this agreement as a critical “first test” of Boeing’s ability to merge two distinct corporate cultures following the Spirit AeroSystems acquisition. The swift ratification suggests that Boeing management is prioritizing labor peace and is willing to pay a premium to secure it. Following the costly strike by 33,000 IAM machinists in late 2024, which resulted in a 38% wage hike, Boeing appears eager to prevent further disruptions.

The generous terms, particularly the 10% 401(k) match, reflect the new leverage labor unions currently hold in the aerospace sector. For Boeing, the cost of the contract is likely outweighed by the strategic necessity of a unified, motivated workforce as the company attempts to fix quality control issues and certify the 777X. However, execution risks remain high as the company proceeds with the technical merger of operations throughout 2026.

Frequently Asked Questions

Who is covered by this new contract?
The contract covers approximately 1,600 white-collar professionals in the Wichita Technical & Professional Unit (WTPU). These are non-engineering technical roles, such as supply chain procurement agents, quality analysts, and production planners.
How long does the contract last?
The agreement is for 4.8 years (58 months), expiring in late 2030.
When do the new benefits take effect?
While the ratification bonus and initial wage increases occur in 2026, the transition to Boeing’s healthcare plans and the enhanced 401(k) match will begin in 2027.

Sources: Reuters, SPEEA Official Statements, Leeham News & Analysis, Boeing Press Release

Photo Credit: Peter Cziborra – Reuters

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MRO & Manufacturing

C.E. Precision Assemblies Expands Aerospace Manufacturing in Chandler AZ

C.E. Precision Assemblies expands to a 39,757 sq ft facility in Chandler, Arizona, adding jobs and scaling aerospace manufacturing under Amphenol.

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This article is based on an official press release from the City of Chandler.

C.E. Precision Assemblies Expands Aerospace Manufacturing Footprint in Chandler, Arizona

C.E. Precision Assemblies (CEPA), a manufacturers specializing in cable assemblies and wire harnesses for the aerospace and defense sectors, has announced a significant expansion of its operations in Chandler, Arizona. Now operating as an Amphenol company following recent acquisitions, CEPA has secured a new facility that will nearly quadruple its current operational footprint.

According to a press release issued by the City of Chandler, the company has signed a lease for a 39,757-square-foot facility located at 7155 W. Detroit St. within the West Chandler Employment Corridor. This move marks a major transition from their current location on West Frye Road, signaling a robust period of growth for the 35-year-old manufacturer.

The expansion is expected to generate between 20 and 30 new jobs over the next two years as the company scales its manufacturing lines to meet increasing demand from defense and aerospace clients. The move-in date is currently projected for May 2026.

Operational Expansion Details

The new facility represents a strategic upgrade in both size and capability. The 39,757-square-foot space is a modern flex-industrial building constructed in 2019. Unlike older industrial stock, this facility features 100 percent air-conditioning, a critical requirement for precision manufacturing in the Arizona climate, along with high ceilings and improved loading capabilities.

Greg Brinjak, Site Director for CEPA, emphasized the company’s long-standing relationship with the region in a statement provided by the city:

“We have been in Chandler for 35 years and need a larger facility to meet increased demand for our products. Continuing to grow in Chandler is important to us, and we are glad to have found a long-term home here.”

Real estate services for the transaction were managed by CBRE, representing CEPA, and Cushman & Wakefield, representing the landlord. The location places CEPA in the heart of the West Chandler Employment Corridor, a hub that already hosts major industry players such as Intel, Northrop Grumman, and Avnet.

Corporate Structure and Market Context

CEPA’s expansion occurs against the backdrop of significant changes in its corporate ownership. Founded in 1986, the firm was acquired by Trexon in October 2023. Subsequently, in November 2025, Amphenol Corporation (NYSE: APH), a Fortune 500 leader in interconnect systems, completed the acquisition of Trexon. Consequently, CEPA now operates under the Amphenol umbrella, leveraging the global resources of one of the world’s largest interconnect manufacturers.

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Local officials have welcomed the reinvestment in the local economy. Chandler Mayor Kevin Hartke noted the significance of retaining established manufacturers:

“We congratulate C.E. Precision Assemblies as they expand their footprint in Chandler. We greatly appreciate their investment in our community and look forward to supporting their continued success.”

AirPro News Analysis

The expansion of C.E. Precision Assemblies highlights a broader trend of consolidation and scaling within the aerospace supply chain. As major defense primes ramp up production for missile systems, UAVs, and radar platforms, Tier 2 and Tier 3 suppliers like CEPA are under pressure to increase throughput.

The acquisition by Amphenol likely provided the capital confidence required to commit to a facility four times the size of the previous one. For the City of Chandler, retaining a legacy manufacturer that has now been absorbed into a Fortune 500 structure validates the West Chandler Employment Corridor’s status as a critical node in the U.S. defense industrial base.

Economic Impact

Beyond the physical expansion, the move reinforces the local labor market. The projected addition of 20 to 30 new employees adds to the region’s dense concentration of engineering and technical talent. Micah Miranda, Chandler’s Economic Development Director, highlighted the trust implied by the lease signing:

“When a company like CEPA chooses to reinvest in Chandler, it shows a tremendous amount of trust. They know Chandler is a stable, pro-business community that will be a partner in their growth.”

The facility’s location offers immediate access to Interstate 10 and the Loop 202 freeway, facilitating logistics for the transport of complex wire harnesses and RF/microwave cable assemblies essential to modern aerospace applications.


Sources:

Photo Credit: City of Chandler

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MRO & Manufacturing

Liebherr-Aerospace Launches REACH-Compliant Coating in Asia

Liebherr-Aerospace deploys a safer Trivalent Chromium coating process at its Singapore service center, with expansion to Shanghai in 2026.

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This article is based on an official press release from Liebherr-Aerospace.

Liebherr-Aerospace Deploys REACH-Compliant Coating Process Across Asian Service Centers

Liebherr-Aerospace has announced the successful industrialization of a new, environmentally sustainable coating process for aircraft heat transfer equipment at its Singapore service center. According to the company, this new method replaces traditional hazardous materials with a safer alternative that complies with stringent European Union regulations.

The aerospace manufacturers and MRO (Maintenance, Repair, and Overhaul) provider confirmed that the process, known as a Trivalent Chromium System (TCS) combined with a Post Application Conversion Sealer (PACS), is now operational in Singapore. Furthermore, the company plans to expand this capability to its facility in Shanghai, China, with implementation scheduled for the first quarter of 2026.

Transitioning Away from Hexavalent Chromium

The core of this operational shift involves replacing Hexavalent Chromium (Cr6+), a standard corrosion inhibitor historically used in aerospace manufacturing but known for its toxicity and carcinogenic properties. In response to global regulatory pressures, particularly the EU’s REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulation, Liebherr has adopted a safer chemical alternative.

According to technical details released by the company, the new process utilizes Trivalent Chromium (Cr3+). While Cr3+ is significantly less toxic, it has historically struggled to match the corrosion resistance and “self-healing” properties of its hexavalent predecessor. To bridge this performance gap, Liebherr utilizes a Post Application Conversion Sealer (PACS), which reinforces the coating to meet the durability standards required for aerospace components.

Validation and Partnerships

Liebherr-Aerospace noted that this specific TCS and PACS process was first qualified and validated at its OEM facility in Toulouse, France. The transfer of this technology to the MRO network ensures that repairs performed in Asia meet the same original equipment standards as those in Europe.

For the Singapore deployment, the company collaborated with Applied Total Control (ATC), a long-term surface treatment partner. This collaboration allowed for the successful integration of the new coating line into the local MRO workflow.

Regional Expansion Strategy

The adoption of REACH-compliant processes in Asia is a strategic move to align Liebherr’s global service network with European standards. The Singapore facility, which serves as a hub for the Asia-Pacific region, recently celebrated completing its 5,000th heat transfer equipment repair. By establishing the process there first, the center acts as a training ground for the wider network.

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According to the press release, staff from Liebherr (China) Co., Ltd. in Shanghai have already undergone training in Singapore. This preparation is intended to facilitate a smooth rollout of the coating process at the Shanghai service center in Q1 2026. This expansion supports Liebherr’s strategy to provide “in-region” support for Chinese airlines, reducing the need to ship components back to Europe for compliant repairs.

“The integration of the REACH compliant TCS and the PACS coating process marks a significant step towards a more sustainable customer service… We comply with the regulations applicable in the EU and in the APAC region, which avoids regulatory risks and delays in aircraft operation.”

, Joël Cadaux, General Manager Aerospace at Liebherr-Singapore Pte Ltd.

AirPro News Analysis

The implementation of EU-centric regulations like REACH in Asian MRO facilities highlights the global nature of the aerospace supply chain. While REACH is technically a European regulation, European OEMs (such as Airbus) and global airlines often mandate compliance across their entire fleet to ensure uniformity and avoid legal complications.

By proactively upgrading facilities in Singapore and China, Liebherr mitigates the risk of “sunset dates”, regulatory deadlines after which the use of hexavalent chromium is prohibited without special authorization. This move likely positions Liebherr to capture maintenance contracts from carriers that prioritize environmental compliance and supply chain continuity, distinguishing them from competitors who may still rely on older, restricted chemical processes.

Frequently Asked Questions

What is REACH?
REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is a European Union regulation adopted to improve the protection of human health and the environment from the risks that can be posed by chemicals.
Why is Hexavalent Chromium being replaced?
Hexavalent Chromium is a known carcinogen and mutagen. Regulations are increasingly restricting its use to protect workers and the environment from toxic waste and exposure.
Does the new coating affect part performance?
According to Liebherr, the combination of Trivalent Chromium and the PACS sealer has been validated to meet the necessary corrosion resistance and adhesion standards required for airworthiness.

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Photo Credit: Liebherr-Aerospace

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MRO & Manufacturing

Honeywell Q4 2025 Results and Aerospace Spin-Off Update

Honeywell reports strong Q4 2025 results with 11% organic sales growth and accelerates Aerospace spin-off to Q3 2026.

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This article is based on an official press release from Honeywell.

Honeywell Reports Strong Q4 2025 Results, Accelerates Aerospace Spin-Off Timeline

Honeywell (NASDAQ: HON) has announced a robust finish to its fiscal year 2025, reporting fourth-quarter results that surpassed analyst expectations for both sales and earnings. According to the company’s official press release, the industrial giant achieved 11% organic sales growth in the quarter, largely fueled by a surging Commercial-Aircraft sector and steady demand in building automation.

Alongside the financial results, Honeywell provided significant strategic updates, most notably accelerating the timeline for the spin-off of its Aerospace business. Originally slated for a later date, the separation is now expected to be completed in the third quarter of 2026. The company also issued a confident financial outlook for 2026, projecting continued margin expansion and sales growth.

Financial Performance: Q4 2025

Honeywell’s fourth-quarter performance highlighted a sharp divergence between its adjusted operational health and its GAAP reported figures, primarily due to significant one-time charges.

Earnings and Revenue

The company reported adjusted earnings per share (EPS) of $2.59, a 17% increase year-over-year, beating analyst estimates of $2.54. Adjusted sales reached $10.1 billion, exceeding the projected $10.02 billion.

However, GAAP earnings per share fell 72% year-over-year to $0.49. Honeywell attributed this drop to non-cash impairment charges associated with planned divestitures and a litigation settlement. Despite these charges, the company’s operational metrics remained strong.

“Organic orders grew 23%, signaling strong future demand, while the backlog reached a record high of over $37 billion.”

Cash Flow and Capital

For the full year, Honeywell generated $6.1 billion in operating cash flow, a 19% increase. Free cash flow also saw a healthy boost, rising 20% to $5.1 billion.

Segment Breakdown

Performance across Honeywell’s portfolio was mixed, with the Aerospace division acting as the primary engine of growth.

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  • Aerospace Technologies: This segment was the top performer, posting 21% organic sales growth. The surge was driven by robust commercial aftermarket demand and increased defense spending. Even excluding the impact of the Bombardier agreement, the segment grew by 11%.
  • Building Automation: Sales in this segment grew 8% organically, supported by the market’s push for energy-efficient building solutions and management systems.
  • Industrial Automation: This sector remained relatively flat (+1%) as it faced softer demand in warehouse and workflow solutions.
  • Energy & Sustainability (ESS): Sales declined by 7% due to weakness in petrochemical catalysts, although order growth in the segment suggests a potential rebound.

Strategic Realignment and 2026 Outlook

Honeywell is undertaking a significant portfolio transformation to simplify its structure and focus on automation and energy transition megatrends.

Accelerated Spin-Off and Divestitures

The company confirmed that the spin-off of its Aerospace business is now targeted for Q3 2026. Additionally, Honeywell plans to divest its Productivity Solutions & Services (PSS) and Warehouse & Workflow Solutions (WWS) businesses in the first half of 2026. The reclassification of these businesses as “held for sale” triggered the impairment charges reflected in the Q4 GAAP results.

Litigation Settlement

The financial results included a one-time charge related to a settlement with Flexjet. This involves a cash payment of approximately $177 million, scheduled for the first quarter of 2026. Honeywell noted that this payment is excluded from its Free Cash Flow guidance to provide a clearer view of operational cash generation.

2026 Guidance

Looking ahead, Honeywell issued optimistic guidance for the full year 2026:

  • Total Sales: $38.8 billion – $39.8 billion.
  • Organic Sales Growth: 3% – 6%.
  • Adjusted EPS: $10.35 – $10.65 (representing 6% – 9% growth).
  • Free Cash Flow: $5.3 billion – $5.6 billion.

AirPro News Analysis

The decision to accelerate the Aerospace spin-off to Q3 2026 signals Honeywell’s confidence in the standalone viability of the unit. By separating the high-growth Aerospace division from the more cyclical industrial and building automation segments, Honeywell aims to unlock shareholder value and allow each entity to pursue distinct capital allocation strategies. The record $37 billion backlog provides a substantial safety net, ensuring that the Aerospace business will launch as an independent entity with a guaranteed revenue pipeline, insulating it from immediate short-term economic volatility.

Sources: Honeywell Q4 2025 Earnings Press Release

Photo Credit: Honeywell

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