Vought today announced that it has significantly scaled back operations at several of its assembly facilities due to the ongoing IAM strikes at Boeing and one of its Nashville facilities."In response to the Boeing IAM strike, we have modified our operations and reached an agreement with Boeing to minimize impacts on our operating results, working capital and liquidity," said Steve Davis, vice president and general manager, Vought Commercial Aerostructures Division. "In addition, we have put in place our contingency plan in response to the Nashville strike."Vought Aircraft Industries is responsible for the fabrication of aft fuselage Sections 47 and 48 of the Boeing 787 Dreamliner in North Charleston, SC.
Vought says it suspended 787 composite bond fabrication operations, affecting production and support personnel. Assembly staff has been reassigned to work on existing shipsets closest to completion.
In addition, over the next 30 days, Vought will be reviewing a number of additional contingencies including possible temporary shut down of the entire North Charleston facility.
"This is a challenging time for all of us who support the Dreamliner program," said Joy Romero, vice president and general manager, 787 Program. "Since the beginning of the Boeing strike, we've been looking at ways to mitigate potential employee job loss in North Charleston, including the initial reduction of outside contract labor. We plan to work with our employees to identify temporary redeployment opportunities at other Vought locations, where possible."According to Charleston-based sources, the aft fuselage sections of Dreamliners Five, Six, Seven and Eight are all undergoing final systems integration. Work on Dreamliners Ten through Nineteen is on hold as Vought focuses on completing these barrels.
According to the same source, completion on Dreamliner Five currently stands above 90%, the highest level of completion of any aft fuselage section to date. The ongoing IAM strike has allowed Vought to focus on further reducing the level of incomplete work travelling to final assembly in Everett, WA.
Final systems integration takes place in what is known as 'Cell 215' at the North Charleston, SC facility, which accommodates up to four fuselage barrels at a time. Vought has fabricated 19 production barrels to date and has delivered four, plus an additional two for the static and fatigue test airframes.
Dreamliner Nine will enter Cell 215 when Dreamliner Five completes final systems integration, and currently occupies Cell 210 where Section 47 and 48 barrels are joined.
Vought's Nashville facility that handles A330/A340 wing components, the Gulfstream G450 wing, C-130 empennage and wing panels for the Cessna Citation X has also been impacted by an IAM strike of its own.
The employees voted to strike on September 27 and the facility has remained open by hiring additional experienced contract labor and shifting personnel from other sites to Nashville.
Photo Credit: FlightBlogger - June 2008. Dreamliner Five, Six, Seven and Eight at Vought Aircraft Industries in North Charleston, SC.
on October 24, 2008 8:10 PM | Reply
Would someone care to examine/correct my simple arithmetic re the strike?
We are looking at cash flow only, ignoring bennies, etc.
Average mechanic is paid 65K/Yr.
Source: http://www.fool.com/investing/value/2008/10/24/how-fat-is-boeings-wallet.aspx
Strike days are approaching 50.
Boeing has offered 11% over 3 years, the union wants 13%.
For the first year, the difference is about $1300.
Union strike pay so far ca. $750 total, @150/week.
So the approximate loss per striker at 50 days is:
Lost Wages: 12500
Lost Bonus: 2500
Lost Raise: 500
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Total: 15500
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Less Strike Pay: 750
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Delta Cash: -14750
The average loss then mounts by $1100 each week.
My arithmetic or input numbers must be wrong.
Or my calculator must be faulty.
Nobody could possibly be that stupid.
Even counting Boeing's loss at only $50 Million a day, that 2.5 Billion could buy a nice new plant.
In a sunshiny place.
on October 25, 2008 10:53 AM | Reply
Vought's 787 barrels better have zero traveled work necessary, and arrive 100% stuffed.
on October 25, 2008 3:36 PM | Reply
They'll arrive 100% complete when Boeing engineering stops dreaming up changes to incorporate.
on October 25, 2008 10:54 PM | Reply
Are Vought's employees generally sympathetic to the striking IAM members in Everett, or are they frustrated by this situation that now THEY are temporarily out of work because of the strike? Anyone have any insight?
-Rick
on October 26, 2008 4:55 PM | Reply
"They'll arrive 100% complete when Boeing engineering stops dreaming up changes to incorporate."
That will only happen when someone breaks all the pencils in the engineering department.
on October 26, 2008 8:12 PM | Reply
One reason to outsource is so that you can have the supplier handle all the details that you do not want to, perhaps cannot even, deal with. Cynical? Not really. Management, as all engineers know, want magical results, yet these guys think that their views are superior. Funny world, indeed.
Oh, by the way, isn't this the same shop that Boeing sent oodles of experts to in order to show them how to do the work?