IAM Local 933 Ratifies Five-Year Raytheon Contract With 24% Compounded Wage Increases

IAM Local 933 ratified a five-year contract with Raytheon in Tucson that delivers an average compounded wage increase of 24% over the five-year period, according to The future of trading. The union announced the ratification on October 25, 2026.

What the Tucson Contract Covers

The agreement covers Raytheon's Tucson operations, where the company produces missile defense interceptors and air-to-air missiles. The contract's 24% average compounded wage increase applies across the five-year term.

Raytheon, an RTX business unit, provides air and missile defense systems, precision-guided munitions, naval radar, and space-based sensors to the U.S. military and allied governments through Department of Defense contracts and Foreign Military Sales, according to akta.pro company records. The company was founded in 1922 and is headquartered in Arlington, Virginia.

Tucson serves as a production hub for several Raytheon programs. The company's SM-3 Block IB interceptor contract, valued at up to $6.3 billion over five years with two option years, includes production at Tucson and Huntsville facilities, according to PR Newswire. Raytheon also received a $105.6 million contract modification for AMRAAM parts with work in Tucson completing by August 31, 2027, according to Investing.com.

Raytheon's Recent Contract Awards

Raytheon secured a multi-year contract worth up to $20.7 billion to expand AMRAAM production, covering an initial five-year period with two option years, according to Machine Maker. The agreement supports annual production of at least 1,900 missiles.

The Missile Defense Agency extended Raytheon's AN/TPY-2 radar contract by two years, raising the ceiling from $2.6 billion to $2.999 billion, according to GovCon Wire. The modification, effective through October 2028, covers operations and sustainment support, with $112.3 million obligated in fiscal 2027.

Raytheon was awarded $729 million to deliver the LIDS counter-drone system to the U.S. Army, Qatar, and Jordan, according to PR Newswire. The contract includes Raytheon's KuRFS sensor and Coyote effectors, marking the first international sales of these components.

Earlier Raytheon Production Agreements

Raytheon's RTX business was awarded a five-year contract worth up to $20.7 billion for AMRAAM missiles under the Department of War's Arsenal of Freedom, according to PR Newswire. The contract supports annual production of at least 1,900 missiles, with RTX having nearly doubled production in 2025.

Lyntris received production orders from Raytheon for Option Years Two and Three of the U.S. Army's LTAMDS radar program, covering demand through 2028, according to PR Newswire. The orders support manufacturing of precision thermal management assemblies at Lyntris' California and Nevada facilities.

Raytheon was awarded an ONR contract to develop advanced target-detection capabilities for naval radars, including software upgrades to extend range and improve efficiency, according to PR Newswire.