Employees of a key Boeing supplier to begin strike on Saturday

Boeing Co (NYSE: BA) doesn’t seem to catch a break. On Thursday, Spirit AeroSystems Holdings Inc (NYSE: SPR) – its key supplier paused manufacturing at its Wichita factory.

Why did Spirit AeroSystems halt production?

The aerostructures company suspended production today after its employees rejected what it offered in a new labour contract and called for a strike on Saturday.

Reacting to the announcement, Ken Herbert – an RBC analyst maintained his “hold” rating on the Kansas-based company that makes fuselages for the 737 Max and said:

The news arrives a couple months after Spirit AeroSystems informed Boeing of a production issue that affected its undelivered 737 Max planes.

Could it hamper Boeing’s production target?

In April, Boeing said it will increase production of 737 Max to 38 per month by the end of this year. In a note to staff, Stan Deal – its Executive VP wrote today:

Nonetheless, the multinational did not reveal if it will have to lower the output of 737 Max following Spirit’s announcement today. Boeing shares are down 2.0% on Thursday.

Last year, Spirit AeroSystems generated about 65% of the net revenue for its commercial business from Boeing.