UPDATE: In a late afternoon development, Spirit AeroSystems says there is “substantial doubt about the Company’s ability to continue as a going concern.”
It was filed with the U.S. Securities and Exchange Commission in a quarterly form on Tuesday. It also says a plan to improve liquidity could include layoffs and more furloughs.
UPDATE: Spirit AeroSystems says layoffs, furloughs may be needed
WICHITA, Kan. (KSNW) — Wichita-based Spirit AeroSystems says it will soon end the furloughs of some of its employees and has no immediate plans to implement additional furloughs or layoffs after Boeing workers approved a contract offer on Monday.
Spirit AeroSystems started furloughs on Oct. 28 for 700 workers on Boeing’s 767 and 777 widebody jet programs. The furloughs will end on Nov. 18.
For seven weeks, 33,000 Boeing factory workers have been on strike. The contract approval will allow the aerospace giant to resume production of its bestselling airliner.
“The conclusion of the strike and the impending return of Boeing employees hearten us,” Joe Buccino, Spirit AeroSystems media relations, said in a statement. “As announced, the furloughs of 767 and 777 employees that began on October 28 will end on November 18. All additional cost-cutting measures will remain in effect. Meanwhile, we face space capacity constraints as Boeing begins resuming production. Reviews of our contingency plans and additional measures continue. We have no immediate plans to implement additional furloughs or layoffs.”
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Leaders of the International Association of Machinists and Aerospace Workers district in Seattle said 59% of members who cast ballots agreed to approve the company’s fourth formal offer and the third put to a vote. The deal includes a 38% wage increase over four years, ratification, and productivity bonuses.
Boeing refused to meet the strikers’ demand to restore a company pension plan that was frozen nearly a decade ago.
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