Published: Thursday, October 30, 2008
Lines at Boeing suppliers Vought, Spirit AeroSystems may slow
Even if Boeing Co. Machinists go back to building jets Monday, that doesn't mean workers for Boeing's suppliers will follow.
The Vought Aircraft Industries plant in North Charleston is going ahead with plans to cut production, despite a tentative settlement in a strike involving Boeing Co. And Wichita, Kan.-based Spirit AeroSystems anticipates a 90-day ramp-up in production of Boeing assemblies, meaning employees could remain on shortened workweeks through January. Boeing Machinists vote whether to accept the latest contract offer Saturday.
Vought said Tuesday it is still considering a possible temporary shutdown of the plant. Vought makes the aft sections of the fuselage for Boeing's new 787 jet. Vought's Lynne Warne told The Post and Courier of Charleston on Tuesday that the company is proceeding with plans to lay off 50 employees and release 65 contractors.
Boeing and the Machinists union have agreed to a four-year deal that could end a 54-day strike. About 27,000 member so the International Association of Machinists and Aerospace Workers walked out Sept. 6, halting production of all Boeing commercial jet.
Vought says a decision on temporarily closing the plant could come within a month.
In Kansas, Spirit AeroSystems executives said Wednesday they're estimating it will take three months for the supplier to be back at full production on Boeing parts. The fuselage supplier reported $18 million "unfavorable cumulative catch-up adjustment" as a result of the strike during the third quarter. Spirit's revenues were down $53 million from decreased shipments to Boeing compared with the previous year.
A few days after the Machinists strike began, Spirit announced it would reduce workweeks for some of its production workers. The company took similar actions during the Machinists strike in 2005.
Jeff Turner, chief executive at Spirit, said the company also is keeping an eye on Boeing negotiations with its engineers union. Negotiators for Boeing and the Society of Professional Engineering Employees in Aerospace began meeting Wednesday. That union's contract expires Dec. 1.
Spirit's Turner said the effect of a SPEEA strike on his company would depend on the duration of the work stoppage.
"Clearly we're hopeful that doesn't occur," he said.
But "it would be less impact than what we've seen with the IAM," Turner said.
The Vought Aircraft Industries plant in North Charleston is going ahead with plans to cut production, despite a tentative settlement in a strike involving Boeing Co. And Wichita, Kan.-based Spirit AeroSystems anticipates a 90-day ramp-up in production of Boeing assemblies, meaning employees could remain on shortened workweeks through January. Boeing Machinists vote whether to accept the latest contract offer Saturday.
Vought said Tuesday it is still considering a possible temporary shutdown of the plant. Vought makes the aft sections of the fuselage for Boeing's new 787 jet. Vought's Lynne Warne told The Post and Courier of Charleston on Tuesday that the company is proceeding with plans to lay off 50 employees and release 65 contractors.
Boeing and the Machinists union have agreed to a four-year deal that could end a 54-day strike. About 27,000 member so the International Association of Machinists and Aerospace Workers walked out Sept. 6, halting production of all Boeing commercial jet.
Vought says a decision on temporarily closing the plant could come within a month.
In Kansas, Spirit AeroSystems executives said Wednesday they're estimating it will take three months for the supplier to be back at full production on Boeing parts. The fuselage supplier reported $18 million "unfavorable cumulative catch-up adjustment" as a result of the strike during the third quarter. Spirit's revenues were down $53 million from decreased shipments to Boeing compared with the previous year.
A few days after the Machinists strike began, Spirit announced it would reduce workweeks for some of its production workers. The company took similar actions during the Machinists strike in 2005.
Jeff Turner, chief executive at Spirit, said the company also is keeping an eye on Boeing negotiations with its engineers union. Negotiators for Boeing and the Society of Professional Engineering Employees in Aerospace began meeting Wednesday. That union's contract expires Dec. 1.
Spirit's Turner said the effect of a SPEEA strike on his company would depend on the duration of the work stoppage.
"Clearly we're hopeful that doesn't occur," he said.
But "it would be less impact than what we've seen with the IAM," Turner said.
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