IAM union rejects pay offer Wednesday
Spirit to suspend production at plant from Thursday
Strike to begin Saturday
Plant manufactures critical structures for Boeing airliners
Boeing shares fall 3.3, Spirit down 14

PARIS, June 22 Reuters Spirit AeroSystems will suspend factory production on Thursday at its plant in Wichita, Kansas, the company said, after workers rejected a proposed fouryear deal and announced a strike to begin on June 24.

Spirit is one of the most consequential suppliers for aerospace heavyweights Boeing and Airbus, with the Wichita site making the entire fuselage of Boeing39;s bestselling 737 MAX narrowbody jet and the forward section of most of its other aircraft, as well as pylons for the Airbus A220.

Shares of Spirit tumbled about 14 in morning trade, while those of Boeing fell 3.3. Parislisted shares of Airbus shed 1.7.

A prolonged work stoppage at Spirit could have ripple effects for the aircraft makers it supplies, eventually forcing them to slow or stop jetliner assembly at a time when both Airbus and Boeing are ramping up production.

It39;s not a welcome development, said Richard Aboulafia, an aerospace analyst with AeroDynamic Advisories.

I think the general feeling is that Spirit had it under control with what appeared to be a reasonable agreement, he said. But after more than a decade of cost pressure on the aerospace industry, labor feels like they have some power.

Spirit will suspend factory production prior to the expiration…