Anheuser-Busch Faces Possible Strike as Teamsters Overwhelmingly Vote to Authorize Work Stoppage

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ICARO Media Group
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18/12/2023 23h22

Embattled beer giant, Anheuser-Busch, may encounter further obstacles as members of the Teamsters union have voted overwhelmingly to authorize a strike at its US breweries. The company has already experienced a significant decline in market share and sales following the Dylan Mulvaney fiasco.

The union, representing approximately 5,000 workers from a dozen US breweries, has accused AB InBev, the Dutch conglomerate that owns Anheuser-Busch, of stalling negotiations on "job security issues" since talks on a new contract broke down last month. The specific details of these issues have not been disclosed by the union.

The demands put forth by the Teamsters include higher wages and the protection of job, health, and retirement benefits. The union leaders assert that Anheuser-Busch cannot delay addressing these concerns much longer. Jeff Padellaro, the director of the Teamsters Brewery, Bakery, and Soft Drink conference, expressed this sentiment in a statement following the vote.

Amidst the strike authorization, an agreement has been reached between the two parties on certain aspects, namely the restoration of retiree health benefits and the elimination of tiered healthcare. Nevertheless, the Teamsters remain resolute in their pursuit of a comprehensive contract that recognizes and rewards the hard work of its members.

Teamsters General President Sean O'Brien emphasized the significance of the strike authorization vote, stating, "Teamsters stand firm in our fight for the best contract at Anheuser-Busch, and this powerful strike vote proves it. Our members' labor, talent, and sacrifice are what put Anheuser-Busch products on the shelf, and we are committed to getting a contract that rewards and recognizes their hard work."

In addition to the labor dispute, Anheuser-Busch has faced criticism for allocating $1 billion to stock buybacks aimed at benefiting wealthy investors while purportedly neglecting the need to preserve and create quality jobs.

Anheuser-Busch has acknowledged the strike authorization vote and expressed its commitment to negotiate a fair agreement that values the dedication and skills of its employees. The company spokesperson stated, "We are committed to negotiating in good faith with the union to reach an agreement that recognizes and rewards the talent, commitment, and drive of our employees."

This potential strike comes as Anheuser-Busch continues to grapple with the aftermath of the Dylan Mulvaney controversy, which led to a boycott and a subsequent decrease in market share. The once top-selling beer brand in the US, Bud Light, was overtaken by Modelo following its association with the transgender influencer.

Furthermore, the company has faced fierce competition from other brands, including independent beers like Yuengling, which have capitalized on the decline of Anheuser-Busch's market share and aggressively sought more shelf space at retailers.

In April, the backlash against the company resulted in approximately 400 job losses, amounting to 2% of Anheuser-Busch's US staff. However, these cuts did not impact the brewery's warehouse staff and drivers.

The number of union members, currently at 5,000, is around 750 fewer than the 2022 contract, according to company filings cited in a CNN report.

The Teamsters members have recently organized rallies in several states and are threatening further actions nationwide if Anheuser-Busch does not set a date for negotiations, according to the union's statement.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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