
PepsiCo’s abrupt closure of a historic Chicago bottling plant sparks legal battle with Teamsters over alleged violation of federal regulations.
At a Glance
- PepsiCo is closing a 60-year-old Chicago bottling plant, affecting 150 workers
- Teamsters Local 727 claims PepsiCo violated federal law by not providing 60 days’ notice
- Workers will be paid for 60 days without being required to work
- The union is considering legal action against PepsiCo
- PepsiCo asserts compliance with legal requirements and commitment to support employees
PepsiCo Announces Sudden Closure of Chicago Plant
PepsiCo has made the decision to shut down its 60-year-old bottling plant in Chicago, citing the facility’s “physical limitations” as the primary reason for the closure. This unexpected move will impact approximately 150 workers, raising concerns about job security and the company’s commitment to its workforce. The closure of this historic plant marks the end of an era for PepsiCo’s operations in the Windy City.
The company has stated that affected employees will receive pay for the next 60 days without being required to work. While this may provide some temporary financial relief, it does little to address the long-term concerns of workers who now face an uncertain future. The abrupt nature of the closure has left many employees feeling blindsided and unprepared for the sudden loss of their jobs.
PepsiCo to close Chicago bottling plant, impacting 150 workers https://t.co/QRq6OIxyYD
— The Associated Press (@AP) October 28, 2024
Teamsters Local 727 Alleges Federal Law Violation
In response to the plant closure announcement, Teamsters Local 727 has accused PepsiCo of violating federal law by failing to provide the required 60-day notice. The union claims that this sudden decision not only breaches their collective bargaining agreement but also disregards legal obligations to workers. The lack of proper notice has escalated tensions between the company and the union, potentially setting the stage for a protracted legal battle.
“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,” said John Coli Jr, the secretary-treasurer of Local 727, expressing his frustration with PepsiCo’s handling of the situation. The union was reportedly informed of the closure via email from PepsiCo attorneys, a move that has been criticized as impersonal and disrespectful to the affected workers. This communication breakdown has further strained the relationship between the company and its employees.
Recent Contract Negotiations and Potential Legal Action
Adding to the controversy, the union had recently negotiated a new contract with PepsiCo without being informed of the potential closure. This has led to accusations of bad faith negotiations on the part of the company. The Teamsters are now considering legal action against PepsiCo, citing the alleged violation of federal regulations and the collective bargaining agreement.
A statement released by the company said, “Our top priority is to support our employees during this transition, and our commitment to serve Chicagoland remains strong.”
PepsiCo, for its part, maintains that its actions comply with all legal requirements. The company has described the decision to close the plant as difficult, emphasizing its commitment to supporting employees and continuing to serve the Chicagoland area. However, these assurances have done little to quell the concerns of workers and union representatives who feel betrayed by the company’s actions.
Sources:
- https://www.msn.com/en-us/money/companies/pepsico-abruptly-closes-plant-on-south-side-with-hundreds-of-workers-laid-off/ar-AA1t4jvZ?ocid=finance-verthp-feeds
- https://www.msn.com/en-us/money/companies/pepsico-abruptly-closes-chicago-facility-lays-off-nearly-80-workers/ar-AA1t5kl7?ocid=finance-verthp-feeds
- https://www.theepochtimes.com/business/pepsico-to-close-chicago-bottling-plant-impacting-150-workers-5749327
- https://www.thederrick.com/ap/business/pepsico-to-close-chicago-bottling-plant-impacting-150-workers/article_8fd68ac3-11dc-5a50-ad17-53b0466dd44b.html
- https://apnews.com/article/pepsico-bottling-plant-chicago-9f04d326e5045b8c017a32c598920acc