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April 20, 2020 | International, Aerospace

Spirit AeroSystems bringing back some furloughed workers

WICHITA, Kan. — A major aircraft parts supplier in Kansas is expected to bring about 2,100 furloughed workers back to work next week as Boeing prepares to resume production of its commercial airplanes.

Spirit AeroSystems also is planning resume work for more than 1,700 other workers in Wichita over the next three weeks, The Wichita Eagle reported.

“As our customer, Boeing, begins to resume production, Spirit AeroSystems will work with our employees, customers and suppliers to begin a phased-in return to work for some furloughed employees," Spirit spokeswoman Keturah Austin said.

She added that “this will be a slow process as we work to continue to support our customer's operations in a manner that is safe for all involved.”

Boeing said Thursday it will restart production of its commercial airplanes next week in the Seattle area, putting about 27,000 people back to work at its facilities in the Seattle area after operations were suspended because of the COVID-19 pandemic. Boeing employees for the 737, 747, 767 and 777 airplanes will return as early as Monday with most returning to work by Tuesday,

Boeing is Spirit AeroSystem's biggest customer, and the impact has rippled to its suppliers.

About 2,100 workers, hourly and salaried, are scheduled to return to various production lines at the Spirit plant in Wichita on Monday, according to a union officials and numbers obtained by the newspaper. They'll be joined by another 200 workers on April 27; an additional 1,100 on April 29; and nearly 400 on May 4.

Cornell Beard, president of Machinists District Lodge 70, said the returning union workers are still a fraction of the plant's full workforce, “but anything's better than nothing.”

The coronavirus has exacerbated Boeing's crisis surrounding the 737 Max, which remains grounded after two deadly crashes. Boeing said Thursday its 737 program “”will resume working toward restarting production"" of the 737 MAX.

Spirit produces about 70 percent of the 737 Max, including the fuselage. Contracts with Boeing for the Max represents more than half of Spirit's annual income.

Future callbacks at Spirit will be largely dependent on Boeing's performance in getting the 737 Max back in the air, Beard said.

“If another mistake is found, or another defect, or if we just encounter another problem, those projections will change again (and) we're going to be right back in this pickle,” Beard said.

https://www.defensenews.com/industry/2020/04/17/spirit-aerosystems-bringing-back-some-furloughed-workers

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  • Amid Pacific naval arms race, US defense chief calls for increased funding for ships

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    Aaron Mehta and David B. Larter Update 9/16/20 — The original version of this story included a statement from Esper's prepared remarks calling for the Navy's shipbuilding accounts to grow to 13 percent of the service's budget. His delivered remarks did not include that specific figure. The story has been appended below to reflect Esper's delivered comments. WASHINGTON — U.S. Defense Secretary Mark Esper on Wednesday announced called for increased funding for Navy shipbuilding after a major review of its force structure — but it is unclear where that funding will come from. In a speech delivered at the think tank Rand, Esper called for a Navy of “over 350 ships,” specifically by increasing the Navy's shipbuilding funding account. “We will build this fleet in such a way that balances tomorrow's challenges with today's readiness needs, and does not create a hollow Navy in the process,” Esper said. "To achieve this outcome, we must increase funding for shipbuilding and the readiness that sustains a larger force. Doing this, and finding the money within the Navy budget and elsewhere to make it real, is something both the Navy leadership and I are committed to doing. The Pentagon sought $207 billion for the Navy in its fiscal 2021 budget request. Even a 2 percent shift under that top line would represent $4.14 billion in extra funding for shipbuilding — real money, even by Pentagon standards. The call to shift funding toward shipbuilding comes amid an accelerating naval arms race in the Pacific, with China investing in both a massive fleet and shore-based, long-range anti-ship missile capabilities to keep the U.S. Navy's powerful carrier air wing out of striking distance. China is building toward a fleet of as many as 425 ships by 2030, according to the Center for Strategic and International Studies, while the U.S. Navy is building to a fleet of more than 355 ships, Esper said. The decision to increase shipbuilding funds, which Esper billed as a “game changer” in his remarks, comes as a result of an internal “Future Naval Force Study,” led by Deputy Secretary of Defense David Norquist. That study — which essentially superseded a review from the service itself — was delivered to Esper this week. That envisioned fleet will include a number of unmanned systems that will “perform a variety of warfighting functions, from delivering lethal fires and laying mines, to conducting resupply or surveilling the enemy,” Esper added. “This will be a major shift in how we will conduct naval warfare in the years and decades to come.” In his remarks, Esper said the forthcoming study “will serve as our guidepost as we decide on, program and build out future fleet and conduct follow-on assessment in select areas.” “In short it will be a balanced force of over 350 ships, both manned and unmanned, and will be built in a relevant time frame and budget-informed manner,” he added. Part of the increased funding could come from Congress shifting around authorities. Esper called on the defense committees to allow the service to “put unused end-of-year Navy funding directly into the shipbuilding account, rather than see it expire.” Traditionally, unspent dollars at the end of the fiscal year are no longer usable by the military. But an internal shift in the Navy's budget, without a corresponding overall increase, means a shift in priorities elsewhere — likely, at least in part, through the retirement of older systems. A key question is whether the Navy will need to fully fund the budget realignment from inside its own coffers, or whether the Department of Defense will realign its own priorities to cover any of the increase, something Esper has been hesitant to commit to in the past. The Navy's shipbuilding budget has been squeezed by the arrival of the Columbia-class ballistic missile submarine, the exorbitantly expensive next generation of nuclear deterrent-bearing boats. Adm. Michael Gilday, the chief of naval operations, said in a January speech at the annual Surface Navy Association symposium that the DoD budget should be realigned to cover the cost of the new Columbia class because it is eating a disproportionate share of the shipbuilding budget at a time the country is trying to grow the size of the fleet to match China. Even a single percentage realignment would make a difference, Gilday argued. To compare, he said, the Navy's budget in the 1980s — when it was building the Ohio-class ballistic missile submarine — was much higher than today's budget. “One percent of the DoD budget would be $7 billion per year in the shipbuilding accounts,” the CNO explained. “If I make some comparison from today and I go back to the 1980s, there are some similarities there.” “Right now we are building the Columbia-class submarine. That is my highest priority,” he added. "By the time we sundown the Ohio class, we'll have 42 years in those hulls. We need to get Columbia out there. “Now, let's go back to when we were building Ohio in the 1980s: It was about 20 percent of the shipbuilding budget. Right now, Columbia is about 20-25 percent. In FY26-30 it's going to be about 32 percent. That's a lot of dough. In the 1980s, the Navy's percentage of the DoD budget was 38 percent. Right now, it's 34. So I think historically I have a case to make.” Jerry Hendrix, a retired Navy captain and analyst with the Telemus Group, said the recognition that the DoD is underfunding shipbuilding is a big step. “It sounds like he [Esper] has recognized that given where we are going with the Columbia class, that the Navy needs more money for shipbuilding, and that's an important recognition,” Hendrix said. “The other part of this is: Is this coming from the Navy's budget, or is it coming from the DoD budget? Because the Navy still needs the rest of its budget to do training and readiness. So that is a very important aspect of this.” https://www.defensenews.com/naval/2020/09/16/amid-pacific-naval-arms-race-us-defense-chief-pledges-billions-more-for-ships/

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