Beer shortages loom as 5,000 workers at AB InBev-owned breweries seek wage increases, job security, and benefits improvements. If their demands aren’t met within the next 10 days, employees represented by the Teamsters union at 12 AB InBev-owned US breweries may strike when their contract expires on February 29. In a recent vote, 99% of workers authorized a strike. A Teamsters representative warned, “Without a contract by February 29, there won’t be any beer come March.”
AB InBev, known for brands like Budweiser, Bud Light, Michelob Ultra, Busch, and Stella Artois, accounts for around 25% of global beer consumption. Despite a US sales decline following a boycott related to Bud Light’s social media promotion featuring a transgender influencer, the company reported profits of over $32 billion in fiscal year 2023, a 1.97% increase from 2022. Last October, AB InBev initiated a $1 billion stock buyback program, signed a high-profile football contract, and became the Olympics worldwide partner until 2028.
Teamsters president Sean O’Brien accused AB InBev of “corporate greed” and urged the company to “do the right thing” rather than ignoring workers’ contract concerns while spending on sponsorships, buybacks, and CEO pay packages. While the Teamsters and brewery workers have been working to resolve issues, AB InBev has not responded to the proposed contract and negotiations.
Jeff Padellaro, director of the Teamsters Brewery, Bakery, and Soft Drink Conference, said, “We’ve put together a model contract that resolves our issues, protects employment, and enjoys support across the membership,” and urged AB InBev to sign the agreement. The Teamsters reported that AB InBev has not met with the union since November 16, when the company refused to negotiate job security.
An AB InBev spokesperson acknowledged the strike authorization vote, describing it as a common occurrence during negotiations and asserting the company’s track record of reaching agreements. AB InBev looks forward to resuming negotiations with the Teamsters.
