Spirit AeroSystems (NYSE:SPR) stock is falling on Thursday after the company suspended operations at its factory due to a worker strike.
According to Spirit AeroSystems, an employee strike has started today from those represented by the International Association of Machinists and Aerospace Workers (IAM). The company points out this has happened over failed contract negotiations.
Spirit AeroSystems offered a four-year contract to the International Association of Machinists and Aerospace Workers employees, but it was rejected. As a result, those employees aren’t reporting to work today but are still getting normal pay.
Here’s what Spirit AeroSystems said about the strike in a news release:
“We know that no one wins in a work stoppage; however, we respect the rights of our represented employees. Despite this setback, we are not distracted from the task at hand. We look forward to continued meetings with IAM leadership.”
What This Means for SPR Stock
The suspension of factory operations is weighing on SPR stock today. That’s due to the company not being able to continue with normal business. This could have a negative effect on its earnings should the strike continue.
As a result, investors are losing confidence and selling shares of SPR stock on the news. This has some 3.2 million shares of the stock changing hands as of this writing. For the record, the company’s daily average trading volume is closer to 2.8 million shares.
SPR stock is down 10% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
