More
    HomeBusinessSpirit AeroSystems weighs hundreds more furloughs or layoffs if Boeing strike goes...

    Spirit AeroSystems weighs hundreds more furloughs or layoffs if Boeing strike goes beyond Nov. 25

    Published on

    spot_img

    [ad_1]

    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.

    Don’t miss these insights from CNBC PRO

    [ad_2]

    Source link

    Latest articles

    Former Bachelor star sparks debate over ‘Sunday schedule’ she made for her husband

    Stay ahead of the curve with our weekly guide to the latest trends,...

    Treasury ‘may have broken law’ ahead of March Budget, says MP

    Getty ImagesThe Treasury "may have broken the law" by failing to disclose a...

    Ex-NASCAR driver at center of ‘Let’s go Brandon!’ chant hopes phrase ends after Election Day

    The famous "Let’s Go Brandon!" chant, which turned into an anti-President Biden...

    More like this

    Former Bachelor star sparks debate over ‘Sunday schedule’ she made for her husband

    Stay ahead of the curve with our weekly guide to the latest trends,...

    Treasury ‘may have broken law’ ahead of March Budget, says MP

    Getty ImagesThe Treasury "may have broken the law" by failing to disclose a...