Boeing workers strike hits suppliers, Spirit AeroSystems (SPR.US) faces layoff risk
1min read Smart Finance News noticed that the strike by Boeing (BA.US) workers in the US has severely impacted its suppliers' financial situation, with key supplier Spirit AeroSystems (SPR.US) spokesperson saying on Thursday that the company is considering laying off or furloughing hundreds of employees if the strike by Boeing machinists continues beyond November 25.
The strike, which has already led to the shutdown of most of Boeing's aircraft production, mainly in the Seattle area, was extended after machinists voted 64% against a new proposed labor contract.
Spirit builds fuselages for Boeing's best-selling 737 Max jetliner and other major components, and has already prepared to furlough about 700 workers at its Wichita, Kansas, plant for 21 days without pay, starting next week.
Joe Busino, a Spirit spokesperson, said in addition to those furloughs, further layoffs were being considered but no decision had been made.
The consideration of additional unpaid furloughs at Spirit shows how much pressure the long strike has put on an already fragile aerospace supply chain. Boeing suppliers have been reluctant to lay off workers largely because they spent years rebuilding their workforces after the pandemic, and Airbus is also facing similar supply chain pressures.
More than 32,000 Boeing machinists in the Puget Sound region and elsewhere in Oregon went on strike on September 13, after rejecting an earlier preliminary agreement.
Boeing's new CEO, Dave Calhoun, has said reaching an agreement with machinists in the Seattle area and ending the strike is a top priority, and the union has said it is eager to get back to the bargaining table.
