Aircraft fuselages intended for Boeing’s 737 Max production facility are awaiting shipment at Spirit AeroSystems Holdings Inc, the top supplier in Wichita, Kansas, USA (December 17, 2019).
Nick Oxford | Reuters
Boeing supplier Spirit AeroSystems has ceased operations at its Wichita, Kansas-based plant following a vote against a new labor agreement and in favor of a strike by workers. Spirit AeroSystems produces fuselages for Boeing’s 737 Max planes and pylons for Airbus A220s at the same facility.
Spirit stated, “In view of the decision made today by Spirit AeroSystems employees, who are represented by the International Association of Machinists and Aerospace Workers, to go on strike, production at the factory will be suspended before the contract expires.”
This development coincides with Boeing’s efforts to increase production of 737 Max planes. While Boeing has some Spirit-made fuselages in stock, the company has not disclosed the quantity, nor the impact of the production suspension on its 737 output.
Stan Deal, CEO of Boeing’s commercial airplane unit, addressed the situation in a memo to employees, stating, “I urge all of us to remain focused on our task at hand, which is to continue building and delivering the world’s finest airplanes. We will keep you updated as we receive further insights from our partners at Spirit.”
The production halt began with the first shift on Thursday, two days before the contract, covering approximately 6,000 employees, is set to expire. The strike is scheduled to commence shortly after midnight on Saturday, as announced by the union.
The union stated, “During challenging times, including the recent pandemic-induced slowdown, the members of IAM District 70 and Local 839 at Spirit AeroSystems have diligently and tirelessly served. However, a majority of our members have deemed the company’s offer unacceptable. IAM District 70 and Local 839 will regroup and plan their next steps to bring the company back to the negotiating table.”
The contract was opposed by 79% of the workers who voted, with 85% voting in favor of the strike.
Shares of Spirit fell by approximately 9% during early-afternoon trading, while Boeing’s shares declined by more than 2%.
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