Boeing's major aircraft components supplier, Spirit AeroSystems, announced on Friday that it will temporarily furlough 700 workers due to the ongoing strike by Boeing machinists. The furloughs are set to begin on October 28 and will affect employees involved in building parts for Boeing 767s and 777s, lasting for three weeks. If the strike extends beyond November, Spirit AeroSystems warned that layoffs may become necessary.
The strike, initiated on September 13 by approximately 33,000 Boeing workers in the Pacific Northwest, has disrupted the production of Boeing 767s, 777s, and 737 Max jets. Boeing's acquisition of Spirit for $4.7 billion aims to streamline operations and enhance control over its supply chain.
Amidst these developments, Boeing is undergoing a fresh review of its compliance with Federal Aviation Administration (FAA) safety regulations. The FAA will conduct a comprehensive examination of Boeing's safety processes over the next three months to ensure the timely and accurate provision of safety-related information for FAA oversight.
The FAA emphasized that the review is part of its routine safety culture oversight and not prompted by any specific incident. This increased scrutiny follows an incident in January where a panel detached from a Boeing Max during an Alaska Airlines flight.
Boeing reaffirmed its commitment to cooperation with the FAA, stating, 'We support all actions that strengthen safety in aviation.' However, the Transportation Department's inspector general recently highlighted weaknesses in FAA oversight, citing challenges in identifying and rectifying issues at Boeing.
With no immediate resolution in sight for the ongoing strike, Boeing anticipates laying off approximately 17,000 employees in the near future to address revenue losses resulting from halted production. Acting Labor Secretary Julie Su engaged with Boeing and the International Association of Machinists and Aerospace Workers to address concerns about the strike's economic impact.
Spirit AeroSystems' cost-cutting measures, including the temporary furloughs, hiring freeze, and operational restrictions, are a response to the financial strain caused by the strike. The company, based in Wichita, Kansas, has accumulated a surplus of 767s and 777s that cannot be delivered to Boeing due to the strike, leading to storage constraints.
If the strike persists beyond November, Spirit AeroSystems indicated that further layoffs and furloughs may be necessary to alleviate financial pressures.
