PepsiCo’s Decision to Shutter Chicago Bottling Facility Will Displace 150 Employees

October 29, 2024 TruthUSA

PepsiCo announced on Monday that it will be shutting down a bottling plant in Chicago, affecting approximately 150 workers, according to the Teamsters union.

Describing the decision as difficult, PepsiCo cited the physical limitations of the 60-year-old building as the reason for the closure. Despite not being required to work, the company stated that it will continue to pay the workers for the next 60 days.

Teamsters Local 727, which represents the plant’s workers, received notice of the closure via an email from PepsiCo attorneys early Monday. The union claims that PepsiCo failed to comply with federal law, which mandates a 60-day notice for pending plant closures or mass layoffs at sites with 50 or more employees.

John Coli Jr., the secretary-treasurer of Local 727, expressed disappointment in PepsiCo’s actions, stating, “To lay off over a hundred Teamsters workers with no notice to them or the union, in violation of both our collective bargaining agreement and the law, is about as low as you can get.” Coli mentioned that the union had recently negotiated a new contract with PepsiCo but was unaware of any potential closures. Legal action against the company is being considered by the union.

PepsiCo responded by asserting that its plans align with legal requirements and that it is willing to collaborate with the union.