AB Inbev expects thousands of job cuts after SABMiller merger deal

The world's largest brewer, AB InBev, says it expects to cut about 3 percent of its total workforce -- equivalent to thousands of jobs -- once it completes its huge merger with its closest rival, SABMiller.

The company headquartered in Leuven, Belgium, says it has about 150,000 workers while London-based SABMiller claims to have around 70,000.

Cerveceria y Malteria Quilmes, part of AB InBev group, has announced that it will be investing upwards of ARS 26 billion (USD 1.75 billion) in Argentina through 2020.

Carlsberg reported its first-half results, posting a 25% boost in net profits. Here, we look at the company's performance during the six-month period by region. All figures are organic, unless otherwise stated.

Western Europe

H1 net sales up 2%, volumes down 1%

Carlsberg said a new value management approach contributed to a positive price/mix in the region. Volumes were negatively impacted by the reduction of margin-dilutive volumes in H2 2015 in the UK and Finland in Q1 2016 in Poland.

The IUF-affiliated KCTWU Oriental Brewery (OB) Union Chapter has been in collectively bargaining with the Oriental Brewery, owned by AB InBev, since December 2015. The company has shown no willingness to respond seriously to the union’s demands to recognize that OB’s success delivering continuous growth despite the global and local economic recession is in large part due to the effort of the OB workers that the union represents. On August 16, members of the KCTWU OB Union Chapter went on strike following a break down in collective bargaining.

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The company Milotur SA, owned by Heineken Holding, presented in late May a restructuring plan in the distribution sector which lays off 46 workers. According to the transnational this measure was taken because the current distribution system is inefficient. However the company failed to provide any documentation proving this claim.

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It has been almost two years since the start of negotiations for a new collective agreement between the IUF-affiliated Union of Beverage Industry (STIBYS) and Honduran Brewery S.A., owned by SABMiller, recently acquired by AB InBev. The whole process has been marked by the dilatory and uncompromising attitude of the British-South African transnational.

In August last year, STIBYS decided to terminate the direct settlement stage and requested mediation. During this stage 30 clauses of a total of 45 were agreed. Three of the most sensitive clauses were already past the stage of conciliation agreement.

"The remaining clauses are the most delicate issues for workers' rights. The most important is the outsourcing, "said Carlos H. Reyes, President of STIBYS.

Anheuser-Busch InBev's executive committee will retain only one SABMiller employee as it prepares a clear-out of the takeover target's staff and global offices.

In a new-look leadership team unveiled today, current CEO of SAB South Africa Mauricio Leyva is the sole SABMiller representative on an 18-strong board. Leyva will become zone president for Middle Americas at AB InBev.

AB InBev has announced that the new group, created by the combination of AB InBev and SABMiller, will be based in Belgium. Meanwhile, other details of the combined group – such as top jobs and organizational structure – have been announced.

Read more here: http://www.beveragedaily.com/Manufacturers/Belgium-headquarters-for-comb...