Anheuser-Busch, Teamsters Reach Agreement To Avoid US Strike

(RTTNews) - Anheuser-Busch (BUD), the parent company of Budweiser, has reached an agreement with the Teamsters union to boost wages, vacation days and pension contributions.

The union, representing 5,000 Anheuser-Busch workers, earlier threatened a strike at the company's 12 brewery plants in the U.S. if a five-year agreement is not reached by 11:59 p.m. EST Thursday.

However, both the parties reached an agreement on late Wednesday, which would soon be shared among the workers before presenting for a ratification vote next week.

"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," Anheuser-Busch CEO Brendan Whitworth said.

The significant points discussed in the agreement were job security and a $2,500 ratification bonus for all workers, a wage increase of $8 per hour, restoration of retirement benefits for current and former workers, and an end to two-tier health care plans.

"This tentative agreement builds even further upon our existing industry-leading package of wages, healthcare, and retirement benefits, and it includes significant commitments to job security," the brewing company spokesperson said. "As America's leading brewer, we take great pride in providing the best jobs in the beer industry and we look forward to formal ratification in the days ahead."

The union said that the workers were angered by the company's notice earlier this month, which proposed lay-offs and closure of breweries as Anheuser-Busch is experiencing a decline in beer sales in the U.S. The company's shipments to the U.S. wholesalers dropped 13.8 percent in 2023, according to Beer Marketer's Insights.

In a similar scenario, 420 Teamsters union workers are on strike at a Molson Coors brewery in Fort Worth, Texas.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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