EVERETT, Wash. — Nearly a month into the Boeing Machinists Strike, both sides appear to be digging in for a long fight. At the beginning of the week, talks broke down between the company and the International Association of Machinists District 751. Both sides blamed each other.
With the announcement from S&P Global that it could downgrade Boeing's credit rating, citing the company's growing cash needs amid the strike, some economic experts believe the company has more to lose than the workers.
"I think Boeing, because of its financial troubles, is playing hardball but the hardball is having a ricochet effect on its finances," Dr. Bahram Adrangi, a professor of economics at the University of Portland, said.
Adrangi said the company is estimated to lose more than $1 billion dollars each month the strike continues. That's on top of the more than $30 billion Boeing has lost since 2019.
If the planemaker's credit is downgraded, it's going to cost more for it to borrow money to dig itself out of the hole.
"When they come back online in a couple of months, let's say, they're going to need capital to get back and running. When they try to borrow, instead of 5%, they're going to have to borrow at 8% or 9%. That's a lot more money over time," he said.
With a dire economic outlook, some striking workers believe Boeing could use the machinists strike to file for bankruptcy.
A spokesperson did not comment on the potential credit downgrade or suggestions from workers it could file for bankruptcy.
Citing the company's role in the world market, Adrangi believes Boeing will do what it can to avoid bankruptcy.
"I don't think Boeing is going to go bankrupt. I don't predict that at all, so workers don't have to worry about that," he said.