Belgium: InBev reaches an agreement with trade unions following strike action

InBev, the Belgian-based brewer, said on June 09 that it had reached a deal with trade unions following strike action by employees protesting against planned job cuts, Financial Times posted June 09.

The producer of Beck's, Stella Artois and Brahma had seen production at its Belgian plants and distribution centres hit by a two-day strike that started on June 08, affecting distribution of beer to retailers ahead of the World Cup. The workers were objecting to the terms of planned job cuts at the company's Belgian operations. InBev said earlier this year that it was restructuring to take into account the increasingly difficult beer market in Western Europe.

However, InBev said that unions would now stop strike action as soon as possible.

The company said recently that it was seeking further acquistions in emerging markets such as China and Russia, and could also sign deals to improve its position in Latin America, its largest market.

In May, InBev reported that first quarter earnings had been boosted by higher beer consumption in Latin America but volumes in western European countries such as Belgium, the UK and Germany had slipped 0.5 per cent.

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