The International Brotherhood of Teamsters and Anheuser-Busch InBev (A-B) have reached a tentative agreement on a new five-year contract that the union said will raise pay, improve health care and retirement benefits and provide job security for its members at A-B’s U.S. 12 breweries, the Teamsters announced on social media Wednesday evening.
The Teamsters said the agreement was unanimously recommended by its National Negotiating Committee after A-B resumed negotiations Wednesday afternoon. The full agreement is expected to be shared with Teamsters members prior to the ratification process, with a vote expected next week.
Teamsters general president Sean M. O’Brien said in the announcement: “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.
“Anheuser-Busch knew our members were serious and prepared to do whatever it would take to get a fair agreement,” he continued. “After a long day and a longer campaign, we’ve reached an agreement that sets a new high standard for the brewing industry. Teamsters 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.”
An A-B spokesperson shared the following statement: “At Anheuser-Busch, our employees are our top priority, and we are pleased to have reached a tentative bargaining agreement with the International Brotherhood of Teamsters that continues to recognize and reward the talent, commitment, and hard work of our employees while also positioning the company for long-term success.
“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. 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 tentative deal averts a strike that was hours away as A-B’s contract with its union members was slated to expire at the end of the month. The Teamsters had unanimously authorized a strike in December. The proposed deal also comes one day before A-B reports its full-year and Q4 2023 earnings.
The new deal is a drastic shift in tone from Wednesday morning when O’Brien accused A-B of “lowballing workers on wages,” “not investing enough money in” union members’ pensions and not making a “firm commitment on job protections.” O’Brien called for a “formal last, best, and final offer” from A-B.
The tentative agreement includes “significant job security” for all union members at A-B’s breweries, which include brewers and packaging and warehouse staff. Wages will increase $4 per hour in the first year of the contract and $8 per hour over the five-year period, an increase of +23%, the Teamsters wrote.
The tiered healthcare system, which the Teamsters have targeted for months, has been eradicated and “all workers” will have access to “the same high-quality Teamsters health care coverage.”
Union members will get a $2,500 ratification bonus, and retirement benefits have been restored for retired and active Teamsters.
The deal also increases pension contributions and benefits, and brings members’ maximum vacation accrual to eight paid weeks.
“Teamsters at Anheuser-Busch will have big pay raises, better benefits, and job security under a strong agreement that benefits everyone,” Jeff Padellaro, director of the Teamsters, Brewery, Bakery, and Soft Drink Conference, said in a release. “The Teamsters fought hard and made sure we got every single item that our members need and deserve.”
As A-B appears to have an agreement with the Teamsters, union members of the Molson Coors production facility in Fort Worth, Texas, continue to strike.
In the weeks leading up to the contract’s expiration, the Teamsters have shared social media posts using concepts and imagery from A-B’s most popular ads, such as Whassup? and the Budweiser frogs.
A-B is the beer industry’s largest employer of Teamsters, according to its negotiations website.