Budweiser brewer Anheuser-Busch has reached a contract agreement with the Teamsters union that will prevent a strike at its U.S. factories.
The union had threatened a strike at the brewer’s 12 U.S. plants if an agreement on a new five-year contract was not reached by 11:59 p.m. EST on Thursday. The Teamsters union represents 5,000 Anheuser-Busch employees who brew and package beer and even care for the company’s legendary Clydesdale horses.
But the two sides said late Wednesday they had reached a tentative agreement that will raise wages and increase vacation days and pension contributions.
“Teamsters make the beer, Teamsters make Anheuser-Busch successful and our members deserve the best contract. That’s what we fought for and won today,” Teamsters general manager Sean M. O’Brien said in a statement.
Anheuser-Busch CEO Brendan Whitworth said the contract also carries significant job security obligations.
“Our people are our greatest strength, and we are incredibly pleased to have reached a preliminary agreement that continues to recognize the talent, dedication and hard work of our teams, while also positioning the company for long-term success,” Whitworth said. a statement.
The union said the full tentative agreement will be shared with employees ahead of the ratification vote, which is expected to take place next week.
The strike would have been the first in the US against Anheuser-Busch since 1976.
The union said earlier this month it was angry about a corporate proposal that would close breweries and lay off workers.
But Anheuser-Busch is facing declining beer sales in the U.S., where drinkers are increasingly turning to spirits, hard seltzers and non-alcoholic drinks.
It is also trying to win back consumers. Bud Light, the top-selling brand, faced conservative backlash last year after it sent a commemorative can to transgender activist Dylan Mulvaney. Transgender rights advocates also left the brand, saying it didn’t do enough to support Mulvaney.
Anheuser-Busch’s shipments to U.S. wholesalers fell 13.8% last year, according to Beer Marketer’s Insights. Overall, U.S. beer shipments fell 5%.
The company, part of Belgium-based Anheuser-Busch InBev, brews more than a dozen brands at its U.S. plants, including Budweiser, Bud Light, Michelob Ultra and Stella Artois.