Anheuser-Busch, Teamsters reach labor agreement to avoid strike

WASHINGTON D.C: Budweiser brewer Anheuser-Busch has reached a contract agreement with the Teamsters union to avoid a strike at its plants in the U.S.

The union, which represents 5,000 Anheuser-Busch workers, said that if by 11:59 p.m. EST on February 29, an agreement on a new five-year contract had not been reached, its members would have struck work at the brewer’s 12 U.S. plants.

However, on February 28 evening, the two sides said they had reached a tentative agreement to increase wages, paid holidays, and pension contributions.

In a statement, Teamsters General President Sean M. O’Brien said, "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."

Meanwhile, Anheuser-Busch CEO Brendan Whitworth said, "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."

The union said the full tentative agreement will be shared with workers before a ratification vote, which is expected to happen next week.

The strike would have been the first in the U.S. against Anheuser-Busch since 1976.

Earlier this month, the union said it was angered by a company proposal to close breweries and lay off workers.

However, Anheuser-Busch is facing declining beer sales in the U.S., where drinkers are increasingly consuming spirits, hard seltzers, and alcohol-free beverages.