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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 Monday in an email sent by
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., the 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.
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