Thursday, October 16, 2008

Spirit AeroSystems reducing staff - Boeing

Spirit AeroSystems might have to resort to more drastic measures to account for its reduced workload if a strike at Boeing continues into next month.
Most employees at Spirit have been on a three-day work schedule since the Machinists union went on strike Sept. 6, idling Boeing plants in Wichita and the Pacific Northwest. Spirit employs about 10,500 people in Wichita.
But Spirit president and chief executive Jeff Turner said in a memo to employees Wednesday that the company must look at other alternatives beyond a shortened workweek for employees supporting Boeing production programs should the strike last much past October.
"These alternatives, in the worst case, include the possibility of broad shutdowns and temporary layoffs, possibly as early as November," Turner said in the memo. "Hopefully, this alternative can be avoided."
Turner called the situation fluid and said Spirit is looking at all its options. He said the company will discuss those options with local union leaders.
"A shutdown is clearly not our preference but may be necessary in the weeks ahead if the strike continues," he said.
A shutdown and temporary layoffs could have a detrimental impact on the Wichita economy, a Wichita State University professor said.
Conservatively, Wichita could take a $5 million a week economic hit if most employees are temporarily laid off at Spirit, said John Wong, interim director of WSU's Hugo Wall School of Urban and Public Affairs.
The figure doesn't include the impact Spirit vendors may feel as well, he said.
It also would affect retailers and other businesses in Wichita, especially if it lingers into the holiday shopping season.
"With the loss of potentially millions of dollars of spending, it obviously looks dismal," Wong said.
Boeing Machinists went on strike after rejecting the company's contract offer by an overwhelming margin. About 27,000 Machinists, including 750 at Boeing Wichita, walked off the job.