Hawker Beechcraft Corp. (HBC) executives last week warned union officials that they are considering moving a majority of the work currently conducted in Wichita to other locations over the next two years, according to Steve Rooney, the president and directing business representative for the International Association of Machinists and Aerospace Workers (IAM) District Lodge 70 in Wichita. Wichita IAM union leaders met with HBC officials July 14 to discuss the state of the industry and how it may affect the company in the future.

HBC says the gathering was part of a series of meetings that began nearly a year ago to discuss serious challenges the company is facing during the economic downturn. While not providing specifics, HBC says, “These conversations have included a spectrum of possibilities for the company’s future footprint and the likely impact on its workforce in all its locations.”

Following the meeting, Rooney wrote IAM members, saying, “We truly wish we had good news to report, but the outlook given by the company was bleak for the future. The picture we are getting is of a Hawker Beechcraft Wichita that will shrink almost immediately by 75% or more within two years, without a guarantee of even the last few jobs staying.”

The HBC contract with the IAM workers expires next year, but HBC has approached the union about beginning negotiations on a new long-term agreement. Rooney, however, says the machinists union is not willing to open negotiations “until we believe there could be a realistic path to success and job security.” The IAM presented an information request to further consider the possibilities.

Union representatives agreed to keep specifics of HBC discussions confidential at this point, but spokesman Bob Wood says the company indicated plans to make certain decisions about work transfer “very quickly.”

HBC has transferred its wire harness work to Mexico, and has studied possibilities for moving a great deal of assembly work to Chihuahua, Mexico, note IAM officials. HBC is one of a number of general aviation manufacturers that has looked to Mexico as a means to cut costs. Cessna has shuttered facilities in Columbus, Ga., and moved the work to Mexico, as well as discussed the possibility for similar transfer of backshop operations from Wichita. Bombardier is planning to assemble its new Learjet 85 in Mexico.

The IAM recently rallied to prevent the transfer of more work from Wichita (BA, June 21/3). The rally took place in Wichita outside a meeting place where negotiations with Spirit AeroSystems were ongoing. Those negotiations resulted in a contract that the IAM says includes strong protections for retaining jobs in Wichita.

The IAM represents about 2,400 workers at HBC, the union estimates.

“The aerospace industry is the last great American industry,” Wood notes. “Everything else we’ve moved out of the nation. We think this industry can and should be saved.”

Hawker 400XP photo: HBC