The Teamsters union announces it has reached a contract deal with Anheuser-Busch just a day ahead of this week's strike deadline.
In a news release, the union says the five year tentative agreement addresses the issues which led to dissatisfaction, including a pay increase, improved health coverage and retirement benefits, and job security.
A strike on Friday would've resulted in 5,000 workers at 12 breweries walking off the job. Anheuser-Busch previously said it had been working on contingency plans to keep the beer flowing if that were to happen.
Teamsters Brewery Conference Chief Jeff Padellaro previously told KMOX one point of contention was an A-B proposal to downsize its number of breweries.
KMOX asked him if the historic St. Louis brewery was on a closure list.
"I'm not going to discuss specific proposals, [but] what I'll tell you is the company's last proposal did not address job security for the membership," Padellaro said at the time.
The tentative agreement still must be ratified by membership.
The union says, in addition to guaranteed job security for brewers, packagers, and warehouse workers, the agreement includes wage increases of $8/hour, with an immediate $4/hour raise in the first year. That averages out to a 23-percent wage increase over the course of the contract. There's also a $2,500 ratification bonus for each Teamsters member.
In terms of health care, the agreement ends a two-tier system and all workers will all have the same coverage which is provided through the Teamsters union. There are also increased pension contributors and more vacation days.
"Teamsters make the beer, Teamsters make Anheuser-Busch successful, and our members deserve the best contract," said Teamsters General President Sean O'Brien in a statement. "Anheuser-Busch knew our members were serious and prepared to do whatever it would take to get a fair agreement."
A-B also released a statement, which calls this an "industry-leading" deal.
"At Anheuser-Busch, we have said time and again that 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," said Brendan Whitworth, CEO, Anheuser-Busch. "As America's leading brewer, we have the best people and provide the best jobs in the beer industry, and together we are focused on what we do best: brewing great beer for everyone, showing up in the moments that matter for our consumers, and making a positive impact in our communities across the country."
