Beer maker Anheuser-Busch and the Teamsters union reached a tentative five-year deal on Feb. 28, avoiding a potential strike set to take place just days later, according to officials.
The Teamsters announced the tentative agreement in a statement on X.
The deal, according to the union, includes a significant raise in pay, improved health care, and retirement benefits for members at 12 major Anheuser-Busch breweries across the United States.
It also provides “critical job security” for all 5,000 Teamsters members at Anheuser-Busch breweries, including brewers, packagers, and warehouse workers.
Teamsters union members had planned to go on strike if a deal wasn’t reached by 11:59 p.m. EST on Feb. 29, when the contract was set to expire. The strike would have been the first in the United States against Anheuser-Busch since 1976.
“Teamsters make the beer, Teamsters make Anheuser-Busch successful, and our members deserve the best contract. That is what we fought for and won today,” Teamsters General President Sean M. O’Brien said in a statement.
“Anheuser-Busch knew our members were serious and prepared to do whatever it would take to get a fair agreement. After a long day and a longer campaign, we’ve reached an agreement that sets a new high standard for the brewing industry.”
Anheuser-Busch Welcomes Deal
Members also will get a $2,500 signing bonus, increased pension contributions and benefits, increased maximum vacation accrual to eight paid weeks, and restoration of retirement benefits for both active and retired members.The agreement also includes an “end to two-tier health care, providing all workers with the same high-quality Teamsters health care coverage,” according to the union.
The Teamsters stated that its National Negotiating Committee unanimously recommended the deal after reconvening at the bargaining table with Anheuser-Busch representatives late in the day on Feb. 28.
However, the deal still needs to be ratified by workers, with a vote expected next week.
In a separate statement, Anheuser-Busch stated, “This tentative agreement builds even further upon our existing industry-leading package of wages, health care, and retirement benefits, and it includes significant commitments to job security.”
Company CEO Brendan Whitworth said: “At Anheuser-Busch, we have said time and again that our people are our greatest strength, and we are incredibly pleased to have reached a tentative agreement that continues to recognize the talent, dedication, and hard work of our teams, while also positioning the company for long-term success.
“As America’s leading brewer, we have the best people and provide the best jobs in the beer industry, and together we are focused on what we do best: brewing great beer for everyone, showing up in the moments that matter for our consumers, and making a positive impact in our communities across the country.”
Molson Coors Workers Strike
Anheuser-Busch is facing declining beer sales in the United States amid a change in drinking habits and the fallout over Bud Light’s partnership with transgender influencer Dylan Mulvaney last year.Anheuser-Busch shipments to U.S. wholesalers dropped by 13.8 percent last year, according to Beer Marketer’s Insights. Overall, U.S. beer shipments were down by 5 percent.
The tentative agreement between the beer maker and union members comes as Teamsters members at rival Molson Coors’ facility in Fort Worth, Texas, have been on strike since Feb. 17.
In his statement announcing the tentative agreement between Anheuser-Busch and the Teamsters union, Mr. O’Brien said union members “continue to hold the line at Molson Coors in Texas for a fair contract, but Molson Coors should pay close attention to the bar we’ve set today for brewery workers across the country.”
