Aviation news analysis
50 SKY SHADES - World aviation news

Machinists vote to strike at Triumph plant supplying Boeing, Airbus

Download: Printable PDF Date: 10 May 2016 23:50 category:
Publisher:
Machinists vote to strike at Triumph plant supplying Boeing, Airbus - Manufacturer publisher
Tatjana Obrazcova
Country: United States Aircraft: Airplanes
Source: Reuters

Machinists at a Triumph Group factory that supplies parts for Boeing, Airbus and other aircraft makers voted on Monday to strike after rejecting the company's latest labor contract, the union said.

Ninety-three percent of members voted to strike and 94 percent rejected the contract, the union said. More than 400 machinists now intend to walk off the job on Wednesday at Triumph Composite Systems in Spokane, Washington.

The factory makes thousands of floor panels, air ducts and other aircraft components a month, giving the strike potential to affect production at major plane makers, experts said.

Triumph said it would close the factory on Tuesday and give employees "the day off with pay" to prepare for the walkout.

The factory will open Wednesday, "and operations will continue for the duration of any work stoppage without any expected disruption," Triumph said in a statement. Earlier, Triumph said it had contingency plans in place

"We are disappointed by this decision, which is not in the best interest of the employees, the company or the community."

Members of the International Association of Machinists had sought to regain pension benefits and terminate a two-tier pay scale "that pays some workers thousands of dollars a year less than others who do the same work," Jon Holden, president of the IAM District 751, said in a statement.

Triumph said it engaged in "weeks of intense negotiations," and its offer would extend an "extremely competitive wage and benefit structure," including raises, lump-sum payments, unchanged medical benefits and greater retirement benefits.

Some industry experts said a strike could disrupt production at Boeing and Airbus, which have been trying to ensure that suppliers can keep to delivery schedules as the plane makers' assembly lines are running at record speeds. The rivals have already seen the delayed delivery of seats, which has held up some aircraft deliveries to airlines.

"They will be sensitive to any strike of any long-term nature," said David Stewart, head of the global aerospace practice at consulting firm ICF International.

"There will be some safety in the system," he said, if Boeing and Airbus built up reserve parts in preparation for a walkout, but companies are holding less inventory in general.

Triumph recently took a $400 million charge and is trying to cut expenses by $300 million over three years by reducing factory space and costs from its suppliers. It plans to cut 1,200 jobs this year out of 15,000, according to analysts at Jefferies, which rates the stock a buy.



Loading comments for Machinists vote to strike at Triumph plant supplying Boeing, Airbus...


Recommended

H145 provides air ambulance services to remote communities in Wales

The Welsh charity, Wales Air Ambulance, operates three H145s for helicopter emergency medical services (HEMS) in Wales, plus an H135 for Childrens Wales Air Ambulance, making them the largest H145 ope...

DC Aviation Al-Futtaim expands managed aircraft fleet

DC Aviation Al-Futtaim (DCAF) has added another Bombardier Challenger aircraft to its managed fleet.  The management contract will see DCAF provide full Flight Operational Aircraft Management...

Third Air Charter Expo a must-attend event

This year’s Air Charter Expo (ACE18) has already achieved record exhibitor numbers, as organisers prepare to bring the must-attend event back to London Biggin Hill Airport on Tuesday 11th&n...

SKYTRAX WORLD AIRLINE AWARDS NAMES AIR ASTANA A WINNER SEVEN YEARS IN A ROW

Air Astana, the flag carrier of Kazakhstan, has been recognised for 4 Star service excellence, retaining the accolade of ‘Best Airline in Central Asia and India’ in the...