Raytheon, Union Reach Labor Deal at Key Jet Engine Plants

(Bloomberg) -- Union workers at two Pratt & Whitney jet-engine plants in Connecticut approved a new labor pact on Sunday, avoiding a potentially costly work stoppage at the key unit of Raytheon Technologies Corp.

The three-year deal includes annual wage increases, improved benefits and job-security language, the International Association of Machinists and Aerospace Workers said in a statement. The contract covers roughly 3,000 workers.

The accord ensures continued production at facilities manufacturing and supporting jet engines powering Lockheed Martin Corp.'s F-35 stealth fighter, Boeing Co.'s KC-46 midair refueling tanker and the geared turbofan engine powering Airbus SE's A320neo family of single-aisle jetliners.

“This negotiating committee studied, prepared, and executed the very best for our membership,” IAM District 26 Chief Negotiator Jeff Santini said in a statement. “As a result, we have made solid gains in nearly every aspect of our agreement and maintained previous important language.”

A Raytheon spokesperson didn't immediately comment on Sunday.

Raytheon and other commercial aerospace companies are contending with supply-chain disruptions and component shortages that have hindered production. Pratt & Whitney was unable to ship 70 engines to Airbus in the first quarter because of a shortage of castings, though the company expects to make those up over the course of the year, Raytheon Chief Executive Officer Greg Hayes said last week.

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