Spirit AeroSystems shares slide as production halts ahead of strike

Key Points

  • Mind AeroSystems halted production at its Wichita, Kansas plant ahead of a strike by unionized workers.
  • Union members rejected the company's four-year offer and have planned a strike on Saturday.
  • Spirit is a supplier to Boeing, Airbus and other aviation companies.

Spirit AeroSystems Holdings (SPR) shares fell more than 10% on Thursday morning as the manufacturer aircraft parts company has suspended operations at its Wichita, Kan, plant. due to an upcoming strike by its unionized employees.

The world's largest manufacturer of aerostructures for commercial airliners, business and regional jets and defense platforms said that following yesterday's decision by the Association International Machinists and Aerospace Workers (IAM) to leave work, Spirit would stop production before tomorrow. End date of the contract. He advised all IAM members to stay home, while non-union members should come to work as normal.

The IAM rejected Spirit's four-year contract offer, with the union saying 79% voted 'no' and 85% voted to strike from Saturday. The company said it was disappointed with the outcome and that the agreement was “fair and competitive”, recognizes the contributions of its employees and “ensures that we can successfully meet the growing demand for aircraft from our customers”.

Boeing (BA) and l& #39;Europe Airbus is among Spirit's customers. Boeing responded, noting that it continues to monitor the situation “and support our valued supplier.”

Boeing Stocks (BA) , Textron (TXT) and others that are provided by Spirit have also declined following the news.

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Source: investopedia.com

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