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Industrial action is returning to the fore after historic strikes in 2023 that threatened to upend large swathes of the economy. Among those involved were the pilot associations at major airlines like American and Southwest, the Teamsters Union at UPS, Workers United at Starbucks, and the International Association of Machinists and Aerospace Workers at Spirit AeroSystems. Don't forget the damaging walkouts that plagued Hollywood - with both writers and actors conducting a historic double strike - as well as the unrest at the United Auto Workers union, which saw staff at Ford, General Motors and Stellantis join the picket lines.
Up next: Things are getting hoppy at Anheuser-Busch InBev (BUD), with more than a quarter of its U.S. workforce, or 5,000 employees, threatening to walk off the job at 12 breweries across the country. "Without a contract by February 29, there won't be any beer come March," warned the Teamsters union, which is fighting for substantial wage increases, job security and other benefits. It was only a week ago that 400 Teamsters members went on strike at a Molson Coors (NYSE:TAP) brewery in Fort Worth, Texas, meaning workers could soon walk out at two of the nation's largest beermakers.
AB InBev (BUD) is being extra mindful due to the long recovery that followed the Dylan Mulvaney controversy last April. The marketing campaign involving the transgender influencer prompted a backlash and boycott that led to Modelo Especial supplanting Bud Light's top spot in the U.S. beer market, and BUD's stock price has only recently returned to its previous levels. While securing a contract with organized labor remains a top priority, Anheuser-Busch (BUD) has outlined a continuity plan and precautionary measures that could see beermaking outsourced to other facilities if necessary.
Thought bubble: Conditions are ripe for discontent, as wages in many industries have not kept up with the pace of inflation and the rising cost of living. At the same time, record sales and profits have been seen at the biggest of brewers. That's prompted both AB InBev (BUD) and Coors (TAP) to announce billion-dollar stock buybacks to please Wall Street, though the announcements have only made more employees feel left out of their fair share. Forcing companies to the bargaining table last year also resulted in strong deals with better working terms and conditions, especially when backed by a U.S. administration that calls itself the "most pro-union in American history."
More on AB InBev
- Anheuser-Busch InBev rallies after Trump endorsement, improved Nielsen trends
- Anheuser-Busch InBev roundup: Super Bowl ads, taproom closings and Teamsters drama
- Anheuser-Busch InBev's solid recovery could hit a wall with a Teamsters strike
- What are you drinking? Winners and losers in Nielsen's breakdown of soda, beer and spirits trends
- Anheuser-Busch InBev's Upside Isn't Over Quite Yet