Spirit AeroSystems limits overtime and hiring as Boeing 737 output drops

Boeing's key supplier Spirit AeroSystems is limiting overtime and hiring as production declines due to lower output of 737 MAX jets, Spirit told Reuters on Friday. Boeing's MAX jetliner production has fallen sharply in recent weeks as U.S. regulators step up factory checks and workers slow the assembly line outside Seattle to complete outstanding work. Boeing's deliveries dropped by half in March from a year ago as it deals with a sprawling crisis triggered by the Jan. 5 Alaska Airlines ALK.N midair panel blowout. The slowdown is spilling over to Spirit, the struggling industry supplier Boeing spun off in 2005, which makes about 70% of the 737. Boeing is now in talks to acquire the company. "When I walk the shop floors things have slowed down," said Cornell Beard, president of the Wichita, Kansas, union district which represents Spirit Aero workers. Beard said employees are expected to raise concerns about potential layoffs at an internal union gathering on Saturday, adding the company cut overtime last week. While Spirit has not announced layoffs, some employees are nervous and are catching up on work they were behind on due to slower assembly demands. "We're just hanging on," he said. Spirit has a requirements contract with Boeing for the 737 MAX program and the U.S. planemaker can reduce the purchase volume at any time, according to a filing. Spirit AeroSystems is "aligning our production to support our customer's rate profile," spokesperson Joe Buccino told Reuters by email. That includes in the near-term "limiting overtime as well as hiring for specific roles, including contractors."<br/>