Company: SPR
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001628280-25-009088
Chunk: 50

Company: Spirit AeroSystems Holdings, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 50
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 suspended its Wichita operations and IAM represented employees began to strike following the expiration of the contract on June 24, 2023. Although a new contract was ratified soon thereafter, the impacts of the strike related production stoppage negatively impacted revenue earnings and cash flow. Any future strike or similar disruption could have similar adverse impacts. In addition, our non-unionized labor force may become subject to labor union organizing efforts, which could cause us to incur additional labor costs and increase the related risks that we now face.

Due to the receipt of occasional government incentives, we have certain commitments to keep our programs in their current locations. This may prevent us from being able to offer our products at prices that are competitive in the marketplace and could have a material adverse effect on our ability to generate new business.

In addition, many aircraft manufacturers, airlines, and aerospace suppliers, including certain of our customers, have unionized work forces. Any strikes, work stoppages, or slowdowns experienced by aircraft manufacturers, airlines, or aerospace suppliers has and could in the future reduce our customers’ demand for additional aircraft structures or prevent us from completing production of our aircraft structures. Union negotiations, strikes, work stoppages, or slowdowns at our customers has and could in the future also directly or indirectly impact our business. For example, on September 12, 2024, machinists at Boeing represented by the International Association of Machinists and Aerospace Workers voted to strike after rejecting a contract offer from Boeing. The machinists commenced a strike on September 13, 2024, that was resolved on November 4, 2024, when the machinists voted to approve a new contract. On October 18, 2024, we announced a 21-day furlough, effective October 27, 2024, for approximately 700 employees working on the B767 and B777 programs in response to the strike by 

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Boeing employees, as the Company had reached maximum storage capacity on the B767 and B777 programs. Even as the strike has ended, we may need to implement further cost saving measures, including layoffs or additional furloughs. 

We could be required to make future contributions to our defined benefit pension and post-retirement benefit plans and our costs may substantially increase in connection with such plans as a result of adverse changes in interest rates and the capital markets, changes in actuarial assumptions and legislative or other regulatory actions. 

Our estimates of liabilities and expenses for pensions and other post-retirement benefits incorporate significant assumptions