Boeing supplier Spirit AeroSystems said Friday that it would start to furlough staff in October as a worker strike at the aviation giant enters its second month.
Some 33,000 Boeing workers in the Pacific Northwest have been on strike since September as they battle for higher wages and improved retirement benefits.
Starting October 28, Spirit will implement a 21-day furlough for around 700 staff working on Boeing’s 767 and 777 jetliner programs, a Spirit spokesperson told AFP.
“The issue here is that we’ve built up a significant inventory buffer on the 767 and 777 programs and do not have room for additional storage,” Spirit added.
“If the strike continues beyond November, financial pressures will require us to implement layoffs and additional furloughs,” the spokesperson said.
As of end-2023, Spirit had over 20,600 employees.
The latest measure is part of a series of actions to cut costs, including an immediate hiring freeze and elimination of travel and overtime, according to a staff message Friday from chief financial officer Irene Esteves.
“Due to our lower revenues, we need to step up our efforts to contain costs,” Esteves added.
Spirit AeroSystems builds fuselages and other key parts for both Airbus and Boeing.
The Boeing machinist strike in the Seattle region has effectively shut down assembly plants for its 737 MAX and 777.
Boeing staff with the International Association of Machinists and Aerospace Workers, walked off the job on September 13 after overwhelmingly rejecting a contract offer. Workers complain of over a decade’s near-flat wages.
Last week, Boeing said it planned to cut 10 percent of its workforce as it projected a large third-quarter loss in the wake of the labor action.
Spirit shares closed 1.5 percent lower while Boeing lost 0.2 percent.
FAA review
In more concerning news for Boeing, the Federal Aviation Administration (FAA) announced Friday that it will be conducting a three-month review of the US aviation giant’s production compliance and risk management practices.
“The FAA will review Boeing’s Continued Operational Safety processes to ensure they meet FAA requirements and result in timely, accurate safety-related information for FAA use,” the US regulator said in a statement.
This audit is part of the enhanced surveillance program put in place following an in-flight incident on 5 January involving a 737 MAX 9 operated by Alaska Airlines and scheduled for delivery in October 2023.
“This review is part of our aggressive oversight to ensure Boeing has the right tools to sustain lasting changes to its safety culture,” the statement added.
