Teamsters and Anheuser-Busch, one of the largest beer makers in the United States, have successfully negotiated a tentative agreement, averting a potentially significant strike. The five-year deal, announced on February 28, includes several key benefits for Teamsters members at 12 major Anheuser-Busch breweries across the country.
The agreement, according to the Teamsters union, includes a substantial increase in pay, improved healthcare, and retirement benefits. It also ensures “critical job security” for all 5,000 Teamsters members working at Anheuser-Busch breweries, including brewers, packagers, and warehouse workers. The union had planned to go on strike if an agreement wasn’t reached by the contract’s expiration on February 29. This would have marked the first strike against Anheuser-Busch since 1976.
Teamsters General President Sean M. O’Brien expressed satisfaction with the deal, stating that it sets a new high standard for the brewing industry. He emphasized that Teamsters members play a crucial role in making Anheuser-Busch successful and deserve the best contract possible. The agreement includes wage increases of $8 per hour, with an average wage increase of 23 percent over the five-year period. Additionally, members will receive a $2,500 signing bonus, increased pension contributions and benefits, an extended maximum vacation accrual to eight paid weeks, and restoration of retirement benefits for both active and retired members.
Furthermore, the agreement addresses healthcare disparities among workers by providing all employees with the same high-quality Teamsters healthcare coverage. While the deal has been recommended by the National Negotiating Committee, it still needs to be ratified by workers through a vote expected to take place in the coming week.
Anheuser-Busch has welcomed the agreement and highlighted its commitment to recognizing the talent and dedication of its teams. Company CEO Brendan Whitworth emphasized that their people are their greatest strength and expressed pleasure in reaching an agreement that positions the company for long-term success. Anheuser-Busch, as America’s leading brewer, aims to continue brewing great beer, serving consumers, and making a positive impact in communities across the country.
The tentative agreement comes at a time when Anheuser-Busch is facing declining beer sales in the United States. The company has experienced a 13.8 percent drop in shipments to U.S. wholesalers last year, reflecting changing drinking habits and the fallout from Bud Light’s partnership with transgender influencer Dylan Mulvaney in 2019. Overall, U.S. beer shipments were down by 5 percent.
While Anheuser-Busch has successfully reached an agreement with the Teamsters, their rival Molson Coors is currently facing a strike by Teamsters members at its facility in Fort Worth, Texas. The strike, which began on February 17, involves 420 workers who are demanding higher pay and improved care and retirement benefits. Negotiations between Molson Coors and the union have been ongoing for months without reaching a resolution.
Sean M. O’Brien, in his statement announcing the tentative agreement with Anheuser-Busch, urged Molson Coors to pay attention to the bar set by the Teamsters’ successful negotiation and strive for a fair contract for brewery workers across the country.
As Anheuser-Busch and the Teamsters move forward with the ratification process, both parties are hopeful that the agreement will be approved and provide a solid foundation for continued success in the brewing industry.
