Anheuser-Busch, the company behind Budweiser, and the Teamsters Union have announced a tentative labor agreement, averting potential strikes at 12 U.S. plants. The union, representing about 5,000 workers, had set a deadline for reaching a deal by midnight Thursday, Feb. 29.

The potential strike against Anheuser-Busch would have been the first in the U.S. since 1976.

Teamsters General President Sean M. O’Brien stated, “Teamsters make the beer, Teamsters make Anheuser-Busch successful, and our members deserve the best contract. That is what we fought for and won today.”

The agreement proposes an $8 per hour wage increase over the next five years, with an immediate $4 raise in the first year. Anheuser-Busch’s CEO Brendan Whitworth expressed being “incredibly pleased” with the arrangement.

Just hours after revealing a new labor agreement, the company announced a 17.3% drop in its U.S. revenue for the latest quarter, mainly due to declining Bud Light sales.

Union members are scheduled to vote on ratifying the deal next week.