Labor & Employment Law Daily Wrap Up, LABOR NEWS—IAM members ratify Lockheed Martin contract in Fort Worth, (Jun 17, 2026)

By Patricia K. Ruiz, J.D.

The five-year agreement includes wage increases, bonus, and changes to working conditions.

Approximately 5,000 unionized aerospace workers in Fort Worth, Texas, have approved a new collective bargaining agreement with Lockheed Martin, concluding negotiations that began in March 2026. The ratified contract establishes a five-year term and outlines wage increases, benefits adjustments, and changes to working conditions. Union leadership stated the agreement reflected member priorities and took effect June 15, 2026.

Agreement accepted. Members of the International Association of Machinists and Aerospace Workers (IAM) District 776 voted June 14, 2026, to accept the agreement with Lockheed Martin, the United States’s largest defense contractor. The bargaining unit includes workers at the company’s Fort Worth facility, as well as covered employees at Edwards Air Force Base in California and Naval Air Station Patuxent River in Maryland. The contract runs from June 15, 2026, through June 15, 2031. It provides for general wage increases over five years of 6.0 percent in 2026, followed by 4.5 percent in 2027 and 2028, and 4.0 percent increases in 2029 and 2030. In addition, the agreement includes a $6,000 ratification bonus payable upon approval.

IAM leadership reported that the negotiating committee unanimously recommended ratification. Statements from union officials characterized the agreement as consistent with member goals, including maintaining existing benefits while securing improvements in compensation and quality-of-life provisions.

Terms. The negotiated terms also address working conditions and time off. According to the union, the agreement eliminates mandatory overtime and increases vacation benefits, with average increases of approximately 30 hours depending on tenure. The contract maintains the cost-of-living adjustment formula and provides annual supplemental payments tied to that structure.

Retirement-related provisions include an increase in the pension multiplier to $108 per year of credited service for eligible employees, as well as a six percent company contribution to a 401(k) plan for employees not eligible for pensions. The agreement also establishes a 50 percent employer match on up to eight percent of employee contributions to a supplemental savings plan.

Health benefits provisions retain high-deductible health plans with capped employee premium contributions and include a one-time $500 health savings account contribution for eligible participants. Legacy health plan options are scheduled for discontinuation after December 31, 2029.

Companies: International Association of Machinists and Aerospace Workers

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