Mobile-area employees of a Coca-Cola sales and distribution company have gone on strike.

Workers picketing on Thursday morning were employees of Coca-Cola United, a Birmingham-based distributor. The unrest follows a major consolidation announced in October 2017: Coca-Cola United took over a Mobile production facility as well as several sales and distribution territories, including Mobile, Leroy, Robertsdale and Florence in Alabama; Laurel and Ocean Springs in Mississippi; Bainbridge, Columbus and Sylvester in Georgia; and Panama City, Fla.

Coca-Cola Bottling Company United issued a statement on Tuesday saying that the strike followed the company's "good faith effort to negotiate a new labor contract" with Teamsters Local 991 leaders.

The company said that its facilities in Mobile, Leroy, Robertsdale and Ocean Springs continue to operate. Coca-Cola United also said it had "activated a business continuity plan" to maintain deliveries and service.

David Stephens, a 38-year employee with the Robertsdale facility and a union steward, said Local 991 was striking due to "unfair labor practices" related to low pay for new employees and higher costs for insurance.

"It's not with the older guys here, but the new ones coming in," said Stephens. He said with some new employees, salaries would be $6 an hour to $8 an hour less than what they are currently making.

"We didn't think it was a fair deal," said Stephens.

He said the current contract expired on July 15 and that Local 991, which consists of about 275 members, had been working under a three-week extension.

"They had a federal mediator come in and an international lawyer and we made no head way," said Stephens. The union began its strike around 2:30 a.m. Thursday.

"We don't like going on strike and we have a lot of customers out there we have a rapport with," said Stephens. "We don't want to go on strike."

He said there was no time table for talks to resume.

In July, Coca-Cola United struck a deal with the University of Alabama making it the Birmingham-based company the exclusive beverage provider for vending and pouring rights on campus. The 10-year contract calls for the company to pay $2 million a year for the rights. A similar deal covers beverage service at athletic events.

Reporter John Sharp contributed to this report.

This story was updated at 9:35 a.m. on Thursday, Aug. 9, 2018, to include statements from David Stephens, a union steward at the Robertsdale Coca-Cola facility.