PepsiCo to Close Chicago Plant, Offer 60 Days’ Pay
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PepsiCo said Oct. 28 it is closing a Chicago bottling plant, a move the Teamsters union says will affect 150 workers.
PepsiCo said the decision was difficult, but it described the 60-year-old building as a facility with “physical limitations.” The company said it would pay workers for the next 60 days even though they won’t be required to work.
Teamsters Local 727, which represents the plant’s workers, said it was informed of the closure early Oct. 28 in an email from PepsiCo attorneys. The union said PepsiCo violated federal law, which requires employers to give 60 days’ notice of pending plant closures or mass layoffs at locations with 50 or more employees.
“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,” John Coli Jr., secretary-treasurer of Local 727, said in a statement.
Coli said the union negotiated a new contract with PepsiCo this summer but wasn’t told about a potential closure. He said the union may take legal action against the company.
PepsiCo said its plans meet “applicable legal requirements” and it will work with the union.
“Our top priority is to support our employees during this transition, and our commitment to serve Chicagoland remains strong,” PepsiCo said in a statement.
PepsiCo ranks No. 2 on the Transport Topics Top 100 list of the largest private fleets in North America.
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