September 02, 2014 11:48 PM ET

Aerospace and Defense

Company Overview of Spirit AeroSystems, Inc.

Company Overview

Spirit AeroSystems, Inc. operates as a non-OEM designer and manufacturer of aerostructures for commercial, military, and business/regional jets. It offers composite and metallic aircraft fuselages, propulsion systems, wing structures, pylons, nacelles, and wing components. The company also provides aftermarket customer support services, including spare parts, maintenance/repair/overhaul, and fleet support services. It serves commercial and military customers in North America, Europe, Asia, and internationally. Spirit AeroSystems, Inc. was formerly known as Mid-Western Aircraft Systems, Inc. and changed its name to Spirit AeroSystems, Inc. in July 2005. The company was incorporated in 2004 an...

3801 South Oliver Street

Wichita, KS 67210-2112

United States

Founded in 2004

Phone:

316-526-9000

Fax:

316-523-8814

Key Executives for Spirit AeroSystems, Inc.

Chief Executive Officer and President
Age: 55
Chief Financial Officer and Senior Vice President
Age: 54
Chief Operations Officer and Executive Vice President
Age: 58
Chief Technology Officer and Senior Vice President
Age: 62
Chief Adminstrative Officer and Senior Vice President
Age: 43
Compensation as of Fiscal Year 2014.

Spirit AeroSystems, Inc. Key Developments

Machinists Union Sues Spirit AeroSystems, Inc

The Machinists union sued Spirit AeroSystems over its reported efforts to sell off its fabrication operations, contending such outsourcing would violate its labor contract and put in imminent danger the jobs of at least 1,400 employees. The lawsuit, filed in U.S. District Court in Kansas, seeks a preliminary injunction prohibiting Spirit from selling off any off its fabrication assets or laying off fabrication workers pending arbitration. Spirit said it believes it is in compliance with its labor agreements and said it does not comment on pending litigation. Spirit noted that during an earning call last week, it had said it's constantly evaluating the strategic vision for the company. The lawsuit contends Spirit "surreptitiously has implemented plans" to sell its fabrication operation and eliminate union jobs. It recounts a May meeting between union officials and company executives to address rumors about a possible sale of all or some operations. The lawsuit contends the company informed the union it planned to sell its fabrication operation, resulting in the layoff of 1,200 employees. The company then told the union it would provide additional information on the sale on the condition the union entered a non-disclosure agreement. Central to the litigation is what the union calls "one of the most extraordinary labor agreements in the history of the aviation industry" that put an end to contentious labor relations that had resulted in four Machinists strikes against Boeing over 20 years. Spirit acquired Boeing's commercial aircraft manufacturing facility in Wichita in 2005. The union and Spirit in 2010 reached a 10-year contract that would give workers the long-term job security they desired while giving Spirit "a guarantee of labor peace" for many years. The union gave up its right to strike, accepted lesser general wage increases and in some instances even accepted reduced wages, according to the lawsuit. In exchange, Spirit agreed to maintain all major manufacturing operations in Wichita and talk to union officials about any decisions that might affect employees during the duration of the agreement. The Machinists union now contends the company has betrayed the union's trust and repudiated the central provisions of the labor agreement. Its filing claims Spirit "intentionally concealed its plan" to sell the fabrication operation from the union. The lawsuit also contends that in June company officials informed the union that Spirit planned to outsource more than 200 jobs in shipping, tools supply, paint stores and other support functions. It argued that unilateral decision to outsource those jobs, even though the move would not reduce costs, is also a breach of the contract. Union officials have filed a formal grievance to address the contract issues and want the court to hold a hearing on its request for a preliminary injunction prohibiting the company from selling any fabrication assets until the arbitrator issues a decision.

The International Association of Machinists and Aerospace Workers to Sue Spirit AeroSystems over Plan to Outsource Jobs

The International Association of Machinists and Aerospace Workers announced it would file a lawsuit on August 8, 2014 against Spirit AeroSystems over the company's plans to outsource IAM-represented jobs by selling a key fabrication operation and the use of outside contractors to perform work currently done by IAM-represented Spirit employees. Spirit employees in Wichita build fuselage sections for all current Boeing programs, which includes the 737, 747, 767, 777 and 787 aircraft; nacelle, strut and pylon components for the 737, 747,767 and 777; as well as components for the Bombardier C Series and the Mitsubishi Regional Jet. Using the misnomer of in-sourcing, Spirit's sale of its fabrication unit, a major manufacturing operation, and plans to use outside contractor employees in tool supply, shipping, paint stores and other support functions will displace IAM-represented workers. The IAM lawsuit alleges these actions are a breach of the IAM-Spirit AeroSystems agreement. The IAM will request a federal district court to issue an injunction prohibiting Spirit from selling the fabrication unit or outsourcing any union jobs pending arbitration of the dispute.

Federal Judge Dismisses 35 Plaintiffs from Lawsuit Against Boeing and Spirit AeroSystems

A Kansas federal judge last week dismissed 35 plaintiffs from a lawsuit alleging that Boeing and Spirit AeroSystems terminated employees because of their age. Judge Eric Melgren said the plaintiffs failed to comply with orders to respond to repeated discovery requests for information and documents. The suit stems from Boeing’s sale of its commercial aircraft operations in Wichita, Tulsa and McAlester, Okla., to Onex Corp. in 2005. According to the initial lawsuit, Boeing fired more than 10,000 employees from the three sites before the sale, which included a disproportionate number of older workers. Spirit rehired more than 8,300 of those workers, but it was less likely to hire the older workers, the original lawsuit alleges, a move that violates the Age Discrimination in Employment Act. The former employees appealed the decision, but it was upheld by the Court of Appeals. Last year, the District Court allowed the plaintiffs to file a complaint asserting individual claims against the company.

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