USA: AB InBev reaches tentative deal with union, Molson Coors strike continues
Top U.S. brewer Anheuser-Busch InBev reached a five-year tentative labor deal with Teamsters that significantly raises pay, improves healthcare and retirement benefits, and provides job security for all 5,000 union members working at its breweries nationwide, the Seeking Alpha reported on February 29.
The new contract includes wage increases of $8/hour, average pay hikes totaling 23% over the length of the deal, a $2,500 ratification bonus for every member, and an end to two-tier healthcare. The union will vote to ratify the deal next week.
"After a long day and a longer campaign, we've reached an agreement that sets a new high standard for the brewing industry," said Teamsters General President Sean O'Brien.
The deal "continues to recognize the talent, dedication, and hard work of our teams, while also positioning the company for long-term success," said AB InBev (BUD) CEO Brendan Whitworth.
The Budweiser brewer is not alone in facing union heat. Last week, 400 Teamsters members went on strike at a Texas brewery owned by Molson Coors (TAP), the second largest U.S. brewer.
"Teamsters continue to hold the line in Texas for a fair contract, but Molson Coors (TAP) should pay close attention to the bar we've set for brewery workers," said O'Brien.
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