In a ballot vote, 64 percent of union members rejected the company’s proposal to increase wages by 35 percent over four years, the International Union of Aircraft Mechanics and Workers (IAMAW) said on Wednesday. The supplier Spirit AeroSystems is increasingly struggling because of the strike.
“After ten years of sacrifices, we still have ground to make up and we hope to do so quickly by resuming negotiations,” the union said in a statement. 40 percent more wages are required. Since September 13, more than 30,000 workers at Boeing factories have been on strike, paralyzing production of important aircraft models such as the 737 MAX. The previous offer was rejected by 95 percent of voters last month and led to the work stoppage.
Meanwhile, Boeing’s most important supplier, Spirit AeroSystems, is increasingly experiencing financial difficulties due to the ongoing strike at Boeing. Spirit Aero posted a net loss of $217 million (€201.54 million) in the third quarter and had to use its entire $350 million credit facility, the company announced on Wednesday.
The company did not receive the expected $425 million in upfront payments from Boeing following the July MoU. The cash reserves have therefore shrunk to just $218 million. Spirit shares fell four percent in after-hours trading following the results release. Boeing did not initially comment when asked.
Compulsory vacation for 700 employees
Spirit blamed the Boeing factory workers’ strike for the deteriorating financial situation. The company announced it would put 700 workers on forced leave for 21 days and warned of possible layoffs if the strike at Boeing continued. Shortly after the announcement, the US aircraft manufacturer’s employees rejected a new wage offer on Wednesday and are continuing their strike. As the company’s largest union announced, 64 percent of the approximately 30,000 employees voted against the proposed contract. This provided for a wage increase of 35 percent over four years. An agreement between Boeing and the union is currently not in sight.
Despite the tense situation, Spirit reiterated that the planned takeover by Boeing should be completed by mid-2025. There are “no changes” to the planned acquisition and integration of Spirit, Boeing CEO Kelly Ortberg said in a conference call on Wednesday. Boeing agreed in July to buy back the supplier, which was spun off in 2005, for $4.7 billion (4.37 billion euros) in shares.
