Anheuser-Busch (A-B) announced it reached a tentative agreement with the International Brotherhood of Teamsters union on Wednesday, one day before its single master contract for the 12 breweries across the country was set to expire.
Teamsters, which represents all 5,000 A-B employees at all 12 U.S. locations, confirmed a five-year tentative agreement was reached on Wednesday.
"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," said Teamsters General President Sean M. O’Brien.
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Teamsters shared that major points of the agreement include: "significant job security" for all employees, wage increases of $8/hour, a $2,500 ratification bonus for each member, increased pension contributions and benefits, increased vacation accrual, restoration of retirement benefits for active and retired members, and an end to two-tier health care coverage.
A spokesperson at A-B told FOX Business that "employees are our top priority" and the company is "pleased to have reached a tentative bargaining agreement" that recognizes and rewards "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," the spokesperson continued. "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."
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Voting on the tentative agreement is expected to take place next week, Teamsters said.
The union previously stated that all 5,000 members were ready to launch a "full-scale strike and nationwide boycott" if an agreement was not reached by the contract's Feb. 29 expiration date.
Anheuser-Busch said earlier this month that it was "prepared to operate our breweries and keep beer stocked" if a strike began on March 1.
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A-B CEO Brendan Whitworth shared in the Wednesday announcement that the company's employees are its "greatest strength" and he is pleased to reach an agreement that benefits all.
"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," Whitworth said.
