The sudden closure of PepsiCo’s Chicago bottling plant has left the local community and its employees in a state of uncertainty, sparking legal controversies along the way.
At a Glance
- PepsiCo’s Chicago bottling plant closes, affecting 150 workers.
- Teamsters Local 727 considers legal action over alleged violation of notice requirements.
- PepsiCo cites the plant’s “physical limitations” as the closure’s cause.
- Employees to receive pay for the next 60 days without work obligations.
- Union was notified via an email from PepsiCo attorneys.
Closure Announcement Stuns Employees
PepsiCo announced the closure of its Chicago bottling plant, which has a 60-year history. The decision affects approximately 150 workers who face uncertain futures. The facility, regarded as facing “physical limitations,” was deemed unsustainable for continued operations. PepsiCo communicated that employees will receive their pay for the next 60 days without being required to work, an attempt to alleviate immediate financial concerns.
The closure, however, has given rise to controversy. Teamsters Local 727 union has raised concerns over PepsiCo’s compliance with federal labor laws, claiming the company failed to provide the legally required 60-day notice before the mass layoff.
Legal Battle Looms
John Coli Jr., secretary-treasurer of Local 727, criticized the closure proceedings as a violation of the collective bargaining agreement and the law. Coli Jr. expressed his disapproval, 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.”
The union has hinted at the possibility of legal action against PepsiCo for what it considers a breach of good faith in recent contract dealings. Despite finalizing a new contract with PepsiCo, the union and its members were not warned about potential facility closures.
PepsiCo to close Chicago bottling plant, impacting 150 workers https://t.co/QRq6OIxyYD
— The Associated Press (@AP) October 28, 2024
PepsiCo’s Response to Allegations
PepsiCo has asserted that its decision complies with all legal mandates and insists on its ongoing commitment to the Chicagoland community. The company affirms that, despite the closure, efforts to support employees during this challenging time remain a top priority.
The corporation described the decision to close the plant as difficult, emphasizing its dedication to mitigating the adverse effects on the local community as much as possible.
Sources
1. PepsiCo to close Chicago bottling plant, impacting 150 workers
2. PepsiCo to Close Chicago Bottling Plant, Impacting 150 Workers
