Arizona IAM Members Ratify Unprecedented Raytheon Contract with 24% Average Wage Growth

More than 2,200 hourly workers at Raytheon’s Tucson operations have approved a new five year contract that will raise average compounded wages by 24 percent over the life of the agreement. The deal, ratified Oct. 25 by members of International Association of Machinists and Aerospace Workers Local 933, also provides bonuses, stronger benefits, expanded training and new scheduling options. For Tucson, the agreement affects thousands of workers and families tied to one of the region’s major defense manufacturing employers, while potentially adding momentum to the local economy through higher pay and continued investment in skilled industrial jobs.

The workers manufacture missile and defense systems used by the U.S. military and its allies. The IAM said the contract is intended to recognize the experience required for that work while helping Raytheon maintain the workforce needed to meet increased demand for critical munitions and other defense systems. IAM International President Brian Bryant described the agreement as a way to support both national security and the employees whose work makes that mission possible. Union leaders said members entered negotiations seeking a contract that respected their skills and made it more attractive to build a long term future in Tucson.

In addition to the wage increases, employees will receive a $3,000 ratification bonus and a $1,500 ratification 401(k) match. The agreement also includes a $3,500 Munitions Acceleration Bonus tied to members’ contributions to higher production and company performance. Workers will receive a separate $2,000 lump sum payment and a $1,000 lump sum 401(k) match. They will also participate in the RTX Performance Sharing Program, which provides an opportunity for additional rewards based on the company’s performance.

The contract changes vacation and paid time off provisions as well. Beginning in 2028, vacation tiers will improve, and the current paid time off schedule will be enhanced for 75 percent of current members. Eligible workers will receive transition payments in 2028 as the changes take effect, including $1,000 for employees with 10 to 14 years of service and $1,500 for those with at least 15 years. Certain job categories will receive increased pay, while shift premiums will also rise, potentially improving compensation for employees working nights or other less traditional schedules.

Scheduling will become more flexible under the agreement through new 4/10 and 3/12 workweek options. Those schedules can give employees additional days away from work compared with the existing 9/80 arrangement, although the contract announcement did not specify how many workers will use each option. For Tucson families, the changes could affect commuting, child care and time available outside the workplace. The agreement also strengthens language covering union representation, apprenticeships and other benefits, according to the IAM.

Career development was another major part of the negotiations. The contract creates a pilot program with the Machinists Institute to supplement Raytheon’s Partnership for Advancement through Career Education, known as PACE. That program builds on the company’s previous Career Enrichment Program and is designed to give current workers more ways to develop skills and move into new roles. The IAM said the effort will include education and training opportunities, mentoring, curriculum development and support for apprenticeships. Union and company interests overlap in this area, since advancement opportunities can help Raytheon retain an experienced and competitive workforce in southern Arizona.

Negotiations formally began Oct. 6, following months of preparation that included member surveys, town halls, information sessions and training for the bargaining committee. Local 933 members also held several solidarity rallies while pressing for what the union called a fair contract. The negotiating committee included Raytheon employees and IAM members Wendel Jackson, Abe Alapizco, Abe Gutierrez, Stefeny Gutierrez, Gerard Klovos, Lee Suzuki and Local 933 President and Directing Business Representative Junior Alegria. The committee received additional support from the IAM International Union and the IAM Western Territory.

Union leaders characterized the agreement as historic for Raytheon and credited member participation with helping the committee secure the final package. Western Territory General Vice President Robert “Bobby” Martinez said members remained united behind their representatives during difficult discussions. Chief Negotiator Paul Shepherd said the contract gives workers more security in the near term while recognizing their role in the company’s future success. Alegria emphasized that many members have homes in Tucson and children attending local schools, making the agreement’s wages, benefits and career opportunities directly connected to the community’s future. The new contract now sets the terms for the next five years.