**Boeing Suspends Union Negotiations Amid Strikes, Faces Credit Downgrade Risks**

Boeing Co.'s attempts to resolve an ongoing labor strike in the Pacific Northwest have hit a roadblock. The aerospace giant announced that further negotiations with the striking workers are currently impractical, stating that the strike has caused significant disruption to both the company's operations and the surrounding community.

Led by Stephanie Pope, President and CEO of Boeing Commercial Airplanes, Boeing had been engaged in multiple rounds of negotiations with the union, seeking a resolution. Despite the involvement of a federal mediator, the company and the union failed to reach an agreement. Boeing officials claimed that enhanced proposals, including better pay and retirement benefits, were brought to the table but were not given due consideration by the union. Consequently, the company has withdrawn its offer, with Pope noting that further talks do not make sense at this point.

The company expressed its discontent with the failed negotiations but remains open to future discussions when the union decides to engage in more balanced discussions. According to Boeing, the need to strike a balance between recognizing employee contributions and maintaining the company's economic sustainability remains a top priority.

The four-week-long strike has prompted S&P Global Ratings to put Boeing's credit rating on negative watch, with the rating agency warning of potential cash outflows of around $10 billion in 2024 due to strike-related costs and necessary changes to the manufacturing process. Adding to Boeing's woes, the U.S. Federal Aviation Administration (FAA) recently issued an alert about possible rudder system jams on Boeing 737 airplanes due to a defective part, urging both the FAA and Boeing to address these safety concerns urgently.

At the time of writing, Boeing shares were trading 1.36% lower as per Benzinga Pro, reflecting investor concerns over the ongoing labor dispute and associated financial and safety issues.