Spirit Aero Furloughs Workers Amid Boeing Strike: What You Need to Know
Overview of Furlough Plans
Spirit AeroSystems announced plans to furlough 700 workers for 21 days as a response to the ongoing Boeing employee strike. This temporary cessation of paid employment will begin on October 28 and affects hourly direct, support functions, and management employees in Wichita, Kansas.
Reasons Behind the Furloughs
The company is facing customer pressures and has been compelled to implement additional cost containment measures and workforce actions. CFO Irene Esteves indicated that capacity issues on key projects, including the 767 and 777 programs, are necessitating these furloughs.
Potential Future Impacts
- If the labor dispute extends beyond Thanksgiving, additional furloughs or layoffs may be necessary.
- Spirit Aero has also introduced a hiring freeze and cut non-labor spending by 15 percent.
Esteves reassured employees of the company's commitment to support them through these challenges. CEO Pat Shanahan echoed these sentiments, acknowledging the impact on staff and their families during this tumultuous period.
Background and Context
Spirit AeroSystems has faced significant challenges this year, grappling with grievances against Boeing and federal investigations following a series of crashes.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.