PepsiCo said Monday it will close a bottling plant in Chicago, a move the Teamsters union says will affect 150 employees.
PepsiCo said the decision was difficult but described the 60-year-old building as a facility with “physical limitations.” The company said it would pay employees for the next 60 days even if they don’t have to work.
Teamsters Local 727, which represents workers at the plant, said it was notified of the closure early Monday in an email from PepsiCo lawyers. The union said PepsiCo violated federal law requiring employers to provide 60 days’ notice of upcoming plant closures or mass layoffs at locations with 50 or more employees.
“To fire more than a hundred Teamsters employees without notice to them or the union, in violation of both our collective bargaining agreement and the law, is about the lowest amount possible,” said John Coli Jr., the secretary-treasurer of Local 727 , said in a statement.
Coli said the union negotiated a new contract with PepsiCo this summer, but was told nothing about a possible closure. He said the union could take legal action against the company.
PepsiCo said its plans meet “applicable legal requirements” and that it will work with the union
“Our top priority is supporting our employees during this transition, and our commitment to serving Chicagoland remains strong,” PepsiCo said in a statement.
