Boeing supplier Spirit Aero to furlough employees amid strike

Spirit AeroSystems announced plans to furlough 700 workers for 21 days Friday due to the ongoing Boeing employee strike. The company’s hourly direct, support functions and management employees in Wichita, Kansas will face a temporary cessation of paid employment on Oct. 28. 

“Given customer pressures, we are implementing additional cost containment measures and workforce actions,” CFO Irene Esteves wrote to employees. “On our 767 and 777 programs, in particular, we do not have storage capacity necessary to continue producing new units.”

Esteves added that if the labor dispute between Boeing and the International Association of Machinists (IAM) extends beyond Thanksgiving, additional workforce actions, including furloughs and layoffs, may be required.

Spirit Aero’s holdings have severely declined in the second quarter leaving the company to devise a plan to recover from its losses. 

In an effort to cut costs, the company has implemented a hiring freeze, eliminated overtime, and reduced non-labor spending by 15 percent in addition to eliminating marketing and advertising expenditures.

“We recognize the impact this has on our valued teammates and their families, and we are committed to supporting them through this period,” said Pat Shanahan, CEO of Spirit AeroSystems.

Spirit Aero has faced the negative repercussions of a year filled with grievances against Boeing, including scrutiny from lawmakers over its fallout with workers and investigation from the Federal Aviation Administration after a series of crashes.