A Boeing 737 aircraft in a carriage at the Spirit AeroSystems plant in Wichita, Kansas, on July 1, 2024.
Nick Oxford Bloomberg Getty Images
Spirit AeroSystems is burdening the furloughs or layoffs of hundreds of other employees if the Boeing The machinists’ strike extends to November 25, a company spokesman told CNBC on Friday.
Boeing machinists, whose strike will enter its sixth week, voted 64% against a newly proposed labor contract on Wednesday, extending a work stoppage that has halted production of most Boeing planes, centered in the Seattle area.
Spirit, which makes fuselages for the best-selling Boeing 737 Max as well as other major parts, is preparing to lay off about 700 employees at its Wichita, Kansas, facility. The 21-day leave could start next week.
Further reductions will be added to the furlough, but no decision has been made, Spirit spokesman Joe Buccino said.
Spirit’s consideration of additional furloughs shows just how long the strike is for the already fragile aerospace supply chain. Boeing’s suppliers are generally hesitant to cut staff because they have spent years rebuilding their workforce after the Covid-19 pandemic. Airbus is also facing similar supply chain pressures.
More than 32,000 Boeing machines in the Puget Sound region, Oregon and other locations walked out of the project on September 13 after rejecting an earlier tentative agreement.
Boeing is in the process of acquiring Spirit, a deal that is expected 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 the previous year.
New Boeing CEO Kelly Ortberg has said getting a deal with Seattle-area machinists and ending the strike is a top priority, and the union has said it is eager to return to the negotiating table.
