Spirit AeroSystems will halt work at its plant in Wichita, Kansas, as the company’s workers vote to reject a proposed four-year deal and announce a strike to begin on June 24. The aircraft components maker is one of the most consequential suppliers for aerospace heavyweights Boeing (BA.N) and Airbus (AIR.PA), with the Wichita site making the entire fuselage of Boeing’s best-selling 737 MAX narrowbody jet and the forward section of most of its other aircraft, as well as thrust reversers and engine pylons. A prolonged strike could have ripple effects, slowing or stopping production at a time when both Boeing and Airbus are ramping up jetliner assembly.
The two sides were negotiating a new contract after the Machinists Union extended 2020 a 10-year pact reached in 2010 when Spirit halted production on the 737 MAX after it was grounded following deadly crashes in the model. The fuselage for the MAX accounts for about 70% of the company’s annual sales, while contracts with Boeing for other narrowbody and defense planes bring in the rest.
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The company has said it will pause work on parts for four of the MAXs in production and avoid starting production on parts for 16 additional planes until Boeing directs it on how to proceed. The MAX program is one of Boeing’s most essential and valuable, bringing in about half the company’s annual revenue. The company has also laid off about 3,000 workers who worked on the MAX after its grounding last year after two fatal crashes.
A strike would be the first for Spirit since its founding in 1997. The company has more than 11,000 workers in Wichita, including about 10,000 Machinists, the city’s largest private employer. Spirit said it might need to adjust its workforce when Boeing resumes production, but the machinists have voted 79% against the new contract and 85% in favor of a strike.
After the strike announcement, the company asked IAM-represented employees to stay home this week. Workers not in the union will continue to report to work as usual.
