Budweiser beer maker Anheuser-Busch has reached a contract agreement with the Teamsters union that averts a strike at its U.S. factories.
Unions had threatened to go on strike at the company’s 12 U.S. factories if a new five-year contract was not reached by 11:59 p.m. Thursday.
The Teamsters union represents 5,000 Anheuser-Busch employees who brew and package beer and also care for the company’s legendary Clydesdale horses.
However, the two countries announced late Wednesday that they had reached a tentative agreement that included higher wages, increased vacation days and pension contributions.
“Teamsters make beer, Teamsters make Anheuser-Busch successful, and our members deserve the best contract. That’s what we fought for and won today,” said Teamsters General President. Sean M. O’Brien said in a statement.
Anheuser-Busch CEO Brendan Whitworth said the deal also makes important job security promises.
“Our people are our greatest strength, and as we continue to recognize the talent, dedication and hard work of our team, we are very pleased to have reached an interim agreement that positions the company for long-term success. I think so,” Whitworth said. statement.
The union said the full tentative agreement would be shared with workers ahead of a ratification vote expected to take place next week.
The strike would have been the first against Anheuser-Busch in the United States since 1976.
The union said earlier this month it was outraged by the company’s proposal to close the brewery and lay off workers.
But Anheuser-Busch is facing declining beer sales in the U.S., where drinkers are increasingly choosing spirits, hard seltzers and non-alcoholic beverages.
They are also trying to win back consumers.
Bud Light, the company’s best-selling brand, faced conservative backlash last year after sending a commemorative can to transgender activist Dylan Mulvaney.
Transgender rights advocates also abandoned the brand, saying it didn’t do enough to support Mulvaney.
Anheuser-Busch shipments to U.S. wholesalers fell 13.8% last year, according to Beer Marketers Insights. Overall, US beer shipments fell by 5%.
The company is part of Belgium-based Anheuser-Busch InBev, which brews more than a dozen brands at its U.S. plants, including Budweiser, Bud Light, Michelob Ultra and Stella Artois.
But not all U.S. beer companies were spared the strike.
On Wednesday, 420 workers representing the Teamsters were in their second week of a strike at the Molson Coors plant in Fort Worth, Texas.
“Molson Coors should pay close attention to the standards it has set today for brewery workers across the country,” O’Brien said in a statement.
