Latest news with #PrattAndWhitney
Reuters
3 days ago
- Business
- Reuters
RTX CEO said Pratt & Whitney strike will impact quarterly cash
May 28 (Reuters) - A weeks' long strike by 3,000 U.S. Pratt & Whitney engine workers will impact free cash flow during the second quarter, but the aerospace and defense giant should be able to recover that during the year, RTX (RTX.N), opens new tab CEO Chris Calio said on Wednesday. "There will be cash impact here in the second quarter," Calio told the Bernstein Strategic Decisions Conference. Calio said the four-week stoppage at Pratt's unionized Connecticut factories impacted its ability to ship jet engines, and he expects break even to negative cash flow in the quarter. RTX shares dipped 2% in morning trade.
The Independent
4 days ago
- Business
- The Independent
Pratt & Whitney machinists end 3-week strike after approving a new contract
About 3,000 machinists at jet engine-maker Pratt & Whitney in Connecticut approved a new four-year contract Tuesday, ending a three-week strike over wages, job security and other issues. Union members were expected to return to work Wednesday after 74% of them voted in favor of the new deal, according to locals 1746 and 700 of the International Association of Machinists and Aerospace Workers. Pratt & Whitney, a subsidiary of Arlington, Virginia-based RTX Corp., makes engines for commercial and military jets, including the GTF line for Airbus commercial jets and the F135 for the military's F-35 Lightning II fighter aircraft fleet. The union said the new contract, which runs to May 2029, guarantees continued operations at the company's East Hartford and Middletown plants through 2029. It also includes a 6% wage increase the first year, followed by raises of 3.5% in 2026 and 3% in both 2027 and 2028. Retirement benefits also were improved, the union said. 'This agreement includes real gains for our members and proves what we can accomplish when we stick together,' Wayne McCarthy, president of Local 700, said in a statement. The company said in a statement that the contract 'recognizes the skill and dedication of our workforce by keeping them among the highest compensated in their field, while ensuring the company is well-positioned for the future.' Union members began picketing in East Hartford and Middletown on May 5, after about 77% of union members voted to approve their first strike since 2001.
The Independent
23-05-2025
- Business
- The Independent
Jet engine maker Pratt & Whitney reaches tentative agreement with striking machinists
Jet engine maker Pratt & Whitney announced Friday that it reached a tentative agreement with the union representing about 3,000 machinists in Connecticut who've been on strike since May 4 demanding improved job security and better wages, retirement benefits and health care coverage. Members of the International Association of Machinists and Aerospace Workers are scheduled to vote May 27 on the revised contract offer. The company said the tentative agreement, reached after the two sides resumed talks on Thursday, addresses 'key points of interest among union members." It did not provide details. In a post on Facebook, the union said it was bringing 'an improved" tentative agreement to the unionized workers for a vote. 'It's in our membership's hands to decide if Pratt and Whitney's offer meets their needs so they can get back to work building the most capable engines in the world!' the post said. Union members began picketing at Pratt's manufacturing locations in East Hartford and Middletown after about 77% of nearly 2,100 union members voted to approve their first strike since 2001. 'Pratt and Whitney is a powerhouse in military and commercial aerospace products because our membership makes it so,' David Sullivan, the union's eastern territory vice president, said in a statement at the time. 'This offer does not address the membership concerns, and the membership made their decision — we will continue to fight for a fair contract.' The company, a subsidiary of Arlington, Virginia-based RTX Corp., had called its earlier wage and retirement proposal competitive, and said its workforce is among the most highly compensated in the region and industry. The strike has come as RTX faces a potential $850 million hit on profits this year because of tariffs imposed by President Donald Trump, if the tariff rates remain the same through the year. During its first-quarter earnings call on April 22, the company said its Pratt & Whitney and Collins Aerospace subsidiaries would each shoulder just over $400 million of the potential tariffs hit. RTX is predicting $83 billion to $84 billion in adjusted sales companywide in 2025. The company's first-quarter earnings were $1.5 billion. Pratt & Whitney's adjusted operating profit in the quarter was $590 million. The company said its earlier contract proposal included an immediate 4% wage increase, followed by a 3.5% increase in 2026 and a 3% increase in 2027. It also included a $5,000 contract ratification bonus and enhanced pension and 401k plan benefits. Pratt & Whitney makes engines for commercial and military jets, including the GTF line for Airbus commercial jets and the F135 for the military's F-35 Lightning II fighter aircraft fleet. Democratic U.S. Sen. Richard Blumenthal, who joined the workers on the picket line, called the tentative agreement 'a solid step forward for Pratt's highly skilled machinists, and I hope for a fair settlement soon.'
Associated Press
23-05-2025
- Business
- Associated Press
Jet engine maker Pratt & Whitney reaches tentative agreement with striking machinists
EAST HARTFORD, Conn. (AP) — Jet engine maker Pratt & Whitney announced Friday that it reached a tentative agreement with the union representing about 3,000 machinists in Connecticut who've been on strike since May 4 demanding improved job security and better wages, retirement benefits and health care coverage. Members of the International Association of Machinists and Aerospace Workers are scheduled to vote May 27 on the revised contract offer. The company said the tentative agreement, reached after the two sides resumed talks on Thursday, addresses 'key points of interest among union members.' It did not provide details. In a post on Facebook, the union said it was bringing 'an improved' tentative agreement to the unionized workers for a vote. 'It's in our membership's hands to decide if Pratt and Whitney's offer meets their needs so they can get back to work building the most capable engines in the world!' the post said. Union members began picketing at Pratt's manufacturing locations in East Hartford and Middletown after about 77% of nearly 2,100 union members voted to approve their first strike since 2001. 'Pratt and Whitney is a powerhouse in military and commercial aerospace products because our membership makes it so,' David Sullivan, the union's eastern territory vice president, said in a statement at the time. 'This offer does not address the membership concerns, and the membership made their decision — we will continue to fight for a fair contract.' The company, a subsidiary of Arlington, Virginia-based RTX Corp., had called its earlier wage and retirement proposal competitive, and said its workforce is among the most highly compensated in the region and industry. The strike has come as RTX faces a potential $850 million hit on profits this year because of tariffs imposed by President Donald Trump, if the tariff rates remain the same through the year. During its first-quarter earnings call on April 22, the company said its Pratt & Whitney and Collins Aerospace subsidiaries would each shoulder just over $400 million of the potential tariffs hit. RTX is predicting $83 billion to $84 billion in adjusted sales companywide in 2025. The company's first-quarter earnings were $1.5 billion. Pratt & Whitney's adjusted operating profit in the quarter was $590 million. The company said its earlier contract proposal included an immediate 4% wage increase, followed by a 3.5% increase in 2026 and a 3% increase in 2027. It also included a $5,000 contract ratification bonus and enhanced pension and 401k plan benefits. Pratt & Whitney makes engines for commercial and military jets, including the GTF line for Airbus commercial jets and the F135 for the military's F-35 Lightning II fighter aircraft fleet. Democratic U.S. Sen. Richard Blumenthal, who joined the workers on the picket line, called the tentative agreement 'a solid step forward for Pratt's highly skilled machinists, and I hope for a fair settlement soon.'
Yahoo
18-05-2025
- Business
- Yahoo
Pratt & Whitney workers entering third week of strike while preparing to lose health care
As the historic Pratt & Whitney strike enters its third week, the union president called workers 'organized and determined' despite the fact that they will soon lose access to their health care plans. The union members began picketing in East Hartford and Middletown on May 5, a day after overwhelmingly rejecting the jet-engine maker's final contract offer and setting up a historic bargaining showdown not seen at the company in decades. The contract dispute covers about 3,000 hourly workers and members of IAM Local 700 and Local 1746. As the strike enters its third week, Wayne McCarthy, president of IAM Union Local 700, said workers will not backing down until they receive job security and a fair contract. Workers are set to lose their health care coverage on Monday, a blow that McCarthy acknowledged would be hard on families. But McCarthy noted that Lt. Gov. Susan Bysiewicz and State Sen. Matt Lesser, D-Middletown, reached out to him on Saturday and announced that workers will be eligible to apply for health care coverage under Access Health CT, the state's health insurance marketplace. 'Our state officials have been tremendous and very helpful,' McCarthy said. 'We are now eligible to get better coverage than COBRA from Access Health. This is very helpful for us ,and we plan on holding an information Zoom call on the 20th and an enrollment period starting on the 21st. Later in the week, we will be holding another information session in Middletown.' Pete Caruso, a union hall monitor with IAM Union Local 700, said the announcement that workers can now access the state's health insurance marketplace is 'welcome news' after days of worrying over the loss of health coverage. 'This is a massive support for us, it's one less thing we have to worry about' Caruso said. 'We're already concerned about our jobs and careers, so one less thing to worry about is really huge for us. So it's good news all the way around. We have had tremendous support from our local officials.' McCarthy has called the strike 'ultra modern' in its approach. He said workers are using social media and group chats to organize and distribute information. He said technology has allowed workers to stay united and combat misinformation. The Union Local 700 president said he has received compliments from retired workers on how organized this strike has been entering its third week. 'I have retirees who come down to the line and say they have never seen a group this united and focused in their life,' McCarthy said. 'These are people that worked at Pratt for 40-plus years. They went through the 1985 strike and the 2001 strike, and everyone is just amazed at the sense of unity here in 2025.' But despite successes, McCarthy acknowledges that some workers may begin to feel the pain of not receiving a paycheck. The company has told employees that workers will forfeit their benefits and pay while striking. Since receiving that letter, employees say the company has not sent out any communications. The last paycheck for many workers was on May 8. 'Some people may be reaching a point where they have a financial concern, so we communicated out yesterday that we have the ability to take a loan out of our 401K,' McCarthy said. 'The payments are suspended until the strike is over. If the strike ends soon, workers can just send the money back. There's no tax penalty and no payment required until we return to work. Some people are now using this option to cover bills or expenses.' Union members say the biggest issues separating them are employment security, marked by worries about jobs migrating to areas of the country where it is cheaper to do business; pension and retirement benefits; and concerns about wages keeping up with inflation. Some picketing workers said the erosion in health benefits, marked by higher premiums and deductibles, essentially erased the pay increases offered by the company. According to Pratt, the proposed pay increase was a general wage increase of 4% immediately, 3.5% in 2026 and 3% in 2027. Despite some hardships caused by the lack of pay and benefits, Caruso said workers 'remain united as ever' and determined to secure long lasting job security and a fair contract for workers. Pratt & Whitney launches new missive on CT strike. Company says it's 'committed to this state' 'There is a lot of passion right now, the general consensus we are all saying to the company is 'see you June' or at least until after Memorial Day,' Caruso said. 'Between the age group that was already ready to retire and a bunch of the young guys, everyone is fairly in line with this. A lot of our workers already had planned for this. We don't know exactly what's gong to happen, but we're very much on the same page.' Pratt & Whitney told the Courant they have no new updates but look forward to resuming negotiations. 'Our local workforce is among the highest compensated in the region and the industry — our offer built on that foundation. We look forward to resuming negotiations for a mutually beneficial new contract that continues to secure these high paying, high-skilled manufacturing jobs here in Connecticut,' a spokesperson with Pratt & Whitney told the Courant. Stephen Underwood can be reached at sunderwood@
