PepsiCo announced the closure of its bottling plant in Chicago, which has been in operation for 60 years. This decision will affect about 150 workers at the facility.
The company described the building as having "physical limitations," indicating that it was no longer suitable for their operations. Although workers will not be required to work during this period, PepsiCo assured them they would receive pay for the next 60 days.
The Teamsters Local 727 union, representing the workers, received news of the closure early Monday through an email from PepsiCo's legal team.
Union Accuses PepsiCo of Federal Law Violation Over Plant Closure
The union expressed strong discontent, stating that PepsiCo violated federal law, which mandates that employers must provide 60 days' notice before closing a plant or conducting mass layoffs, especially at locations with 50 or more employees.
John Coli Jr., the secretary-treasurer of Teamsters Local 727, criticized the company's handling of the situation, claiming that laying off over a hundred workers without prior notice was unacceptable and a violation of their collective bargaining agreement.
He also mentioned that the union had negotiated a new contract with PepsiCo during the summer and had not been informed of any potential closure at that time. As a result, the union is considering legal action against the company.
Despite the backlash, PepsiCo stated that its plans comply with all applicable legal requirements.
According to AP News, the company expressed its commitment to support employees during this transition and reaffirmed its dedication to serving the Chicago area. PepsiCo emphasized that they would work closely with the union as they move forward.
