Boeing 737 fuselages on railcars at Spirit AeroSystems’ factory in Wichita, Kansas, on July 1, 2024.
Nick Oxford | Bloomberg | Getty Images
Spirit AeroSystems is weighing furloughs or layoffs of hundreds more employees if the Boeing machinists’ strike stretches beyond Nov. 25, a company spokesman told CNBC on Thursday.
Boeing’s machinists, whose strike is about to enter its sixth week, voted 64% against a newly proposed labor contract on Wednesday, extending the work stoppage that has halted production of most of Boeing’s aircraft, which is centered in the Seattle area.
Spirit, which makes fuselages for Boeing’s best-selling 737 Max as well as other major parts, had already been preparing to temporarily furlough about 700 workers in its Wichita, Kansas, facilities. Those 21-day furloughs could begin next week.
Further reductions would be in addition to those furloughs, but no decision has been made, said Spirit spokesman Joe Buccino.
Spirit’s consideration of additional furloughs demonstrates how the lengthy strike is weighing on an already-fragile aerospace supply chain. Boeing suppliers have largely hesitated to cut staff in part because they had spent years rebuilding their workforces in the wake of the Covid-19 pandemic. Airbus is also facing similar supply chain pressure.
More than 32,000 Boeing machinists in the Puget Sound area, Oregon and other locations walked off the job on Sept. 13 after turning down an earlier tentative agreement.
Boeing is in the process of acquiring Spirit, a deal it expects to close next year. Spirit has been burning through cash and, on Wednesday, reported a third-quarter net loss of $477 million, more than double a year earlier.
Boeing’s new CEO Kelly Ortberg has said getting a deal with its Seattle-area machinists and ending the strike is a top priority, and the workers’ union has said it is eager to get back to the negotiating table.
This article was originally published on CNBC