PRESTWICK, SCOTLAND – AUGUST 31: Scottish Prime Minister Nicola Sturgeon holds a model of an Airbus … [+]
Boeing is nearing a deal to buy back Spirit AeroSystems. The main supplier and former subsidiary is said to have made progress along with its other main customer, Airbus, in separating the divisions that handle the Boeing rival’s work.
That would include the former Bombardier and Shorts SpiritAerosystems factory in Belfast, Ireland, which makes wings for the Airbus A220, and the former BAE Systems factory in Prestwick, Scotland, which builds Airbus airframes and wings.
On Friday, Unite, a union representing the majority of SpiritAerosystems’ workforce in the United Kingdom, expressed concerns about the Boeing takeover. In a statement, the union said it is seeking assurances that the purchase will go ahead, with Airbus “acquiring all those parts of the business that fall within the supply chain” and “keeping manufacturing operations in Belfast and Prestwick intact without job losses.”
Unite general secretary Sharon Graham said: “Workers’ livelihoods should not be put at risk as corporate giants divide the future of this company. It is crucial that all employees quickly receive rock-solid guarantees about their future. “Unite will leave no stone unturned to ensure that the future of this highly skilled and dedicated workforce at Spirit is fully protected.”
Spirit Aerosystems Belfast employs around 3,600 people and Unite estimates that 7,000 jobs in Northern Ireland depend on Spirit’s operations in the region. Most of Spirit’s production in Northern Ireland is for Airbus, but around 40% of jobs are linked to production for other aerospace companies, including Bombardier and Rolls Royce. Prestwick employs a thousand workers and Unite demands the same job security guarantees for them.
“Any deal that transfers production lines or locations in the Airbus supply chain to Airbus, but transfers production from non-Airbus companies to Boeing or a third party, is a clear employment concern,” the union said. Unite expressed concern that the breakdown of these divisions would “undermine wider economies of scale and threaten all operations in the longer term.”
Unite regional coordinating officer George Brash said: “All of Spirit’s activities in Northern Ireland must be transferred together – ensuring our members’ jobs are safe and the aerospace manufacturing base is secured.”
Boeing began negotiations earlier this year to bring Spirit back into the fold in an effort to stabilize its vital supply chain and address quality issues after the doorplug blowout on an Alaska Airlines 737 MAX 9 flight in January.
The NTSB’s preliminary investigation determined that this blow was most likely due to four missing plugs that were removed during an undocumented repair in which the door plug was removed and reinstalled by a Spirit AeroSystems employee at the Boeing factory.
Boeing is expected to acquire SpiritAerosystem’s factories in Wichita, Kansas and Tulsa, Oklahoma, restoring the corporate structure before Boeing divested the division in 2005. However, cutting Spirit’s ties with other aerospace companies is no small feat.
In the nearly two decades since Boeing spun off its critical division, Spirit has become a major supplier to a number of Boeing’s commercial and defense competitors, including its main commercial rival Airbus.
The European aerospace company had threatened to block any deal that could compromise its intellectual property, which would give Boeing access to knowledge about the engineering of crucial parts for its planes.
In the intervening weeks, Boeing and Airbus have reportedly managed to identify the Spirit AeroSystems programs that each will take back, but the other third-party programs are still unlisted.
Reuters reports that “a deal for Spirit’s Airbus-related assets was more likely than not before Airbus’s half-year results in July.” However, The AirCurrent has reported that a deal could be announced as early as Monday.
Unite’s push for answers to the pressing question of other Spirit AeroSystems work in Britain could influence these predictions.