Proactive Investors - Spirit AeroSystems (NYSE:SPR) said it plans to suspend production at its Wichita, Kansas, factory after workers represented by the International Association of Machinists and Aerospace Workers (IAM) rejected a pay deal and voted to strike from June 24.
The company’s shares fell about 9% in pre-market trading.
In a statement, the company said all workers not represented by the IAM should still report for work.
“We are disappointed that our employees represented by the IAM rejected our four-year contract offer and voted to strike,” the company said.
“We believe that our fair and competitive offer recognizes the contributions of our employees and ensures we can successfully meet increasing demand for aircraft from our customers.”
Spirit AeroSystems is one of the world's largest manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. Customers include Boeing (NYSE:BA) and Airbus, with the Wichita site making the entire fuselage of Boeing's best-selling 737 MAX narrowbody jet and the forward section of most of its other aircraft, as well as pylons for the Airbus (EPA:AIR) A220, according to a report on Reuters.
“We know that no one wins in a work stoppage; however, we respect the rights of our represented employees,” the company continued.
“Despite this setback, we are not distracted from the task at hand. We look forward to continued meetings with IAM leadership.