Teamsters Union at Anheuser-Busch Prepares for Possible Strike

A workforce crisis could potentially hit Anheuser-Busch as approximately 5,000 of its unionized employees, affiliated with the Teamsters union, gear up for a possible strike if a new contract is not negotiated before the existing one expires on Feb. 29. Comprising over a quarter of Anheuser-Busch’s U.S. workforce, these workers are based across 12 breweries nationwide. The possibility of a strike comes at a time when the brewing giant is grappling with declining sales and internal challenges.

The Teamsters union announced on Saturday that a landslide 99% of the members gave the green light to authorize the strike. Anheuser-Busch InBev has acknowledged the potential labor dispute, expressing its commitment to negotiating in good faith.

“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. If Anheuser-Busch’s executives can’t get their act together to negotiate an agreement that respects workers, we will see them out on the streets.”

Sean O’Brien, Teamsters President, via CNN

Strike authorization votes, particularly ones that are “in favor of a strike,” are common occurrences in labor negotiations. They serve as a powerful tool for unions to signal the readiness of their members to strike if favorable terms are not agreed upon. However, most labor contracts tend to be renegotiated without the necessity of actual strike action. For instance, the Teamsters union authorized a strike involving about 340,000 members at UPS but managed to negotiate an agreement just a week before the proposed strike deadline.

Over the past year, strikes have seen a significant surge. As per a database maintained by Cornell University’s School of Industrial and Labor Relations, 2023 witnessed 70 strikes involving 100 or more workers that lasted longer than a week, marking an increase of 59% compared to the same time frame in 2022.

These labor movements have found considerable success in securing better pay and benefits. Analysis by CNN reveals that around 1 million union members achieved immediate pay raises of 10% or more over the last year, most of which were negotiated in the past six months.

A considerable portion of these victories were against companies reporting high or near-record profits and hence seemingly more disposed to accede to union demands. However, Anheuser-Busch’s situation diverges from this trend due to a steep fall in sales following a social media controversy involving transgender influencer Dylan Mulvaney, causing some conservatives to boycott Bud Light. This controversy led to Bud Light losing its status as the top-selling U.S. beer brand, and the company’s U.S. revenue per 100 liters, a vital sales metric, fell by 13.5% in the third quarter.

In response to these challenges, Anheuser-Busch InBev reduced its U.S. workforce by nearly 2% or about 400 positions in July. The layoffs did not involve frontline staff like brewery and warehouse staff, drivers, and field sales. This decision, combined with the potential strike looming, could cause significant shifts in the brewing giant’s workforce and overall operations in the near future.