Anheuser-Busch InBev and the Teamsters union have tentatively agreed on a new five-year labor contract.
The deal effectively averts a looming strike threatening to halt operations nationwide at the company’s breweries.
This development came just in time, as the union had set a strike deadline for March 1, coinciding with the current contract’s expiration.
The agreement covers approximately 5,000 Anheuser-Busch brewery workers.
It was negotiated against the backdrop of demands for wage increases and assurances against potential brewery closures.
Under the proposed contract, employees would receive a pay bump of $8 per hour over the contract’s duration, starting with an immediate $4 per hour increase in the first year.
The agreement also includes a $2,500 bonus upon ratification, health and retirement benefits enhancements, and increased contributions to employee pension plans.
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The ratification vote by the union members is scheduled to take place in the coming week.
Anheuser-Busch said the deal rewards its employees and strategically positions the company for future success.
This announcement was made shortly after the company reported a 17.3 percent decline in US revenue for the latest quarter.
The downturn was largely attributed to the faltering sales of Bud Light following a boycott sparked by the brand’s outreach to a transgender influencer.
