Comment on PepsiCo shutters southwest side facility in a move Teamsters call ‘despicable’

PepsiCo shutters southwest side facility in a move Teamsters call ‘despicable’

PepsiCo abruptly shuttered a southwest side facility Monday, leaving dozens of employees out of work in a move their union alleged was illegal. In a statement, Teamsters Local 727 secretary-treasurer John Coli Jr. called the closure of the 650 W. 51st Street plant “despicable” and said the union would take “any and all legal action we can to do right for our members.” The Teamsters allege the sudden closure violates the workers’ collective bargaining agreement with PepsiCo as well as the Worker Adjustment and Retraining Notification Act, which requires 60 days’ advance notice of certain mass layoffs and plant closures. PepsiCo said in a statement that its plans to close the facility “meet applicable legal requirements.” In a notice to the union Monday it said was “pursuant to any possible obligations” under the WARN Act, PepsiCo said it would continue to pay union employees at the facility through December 28. In a statement to the Tribune, the company said it had filed a WARN notice and that employees would “be paid and continue to receive benefits as set forth in the collective bargaining agreement for 60 days.” Representatives for the state’s labor department and its Department of Commerce and Economic Opportunity said they had not received a WARN notice from PepsiCo as of Monday afternoon. The company said in its notice to the union that 79 Teamsters were impacted.

 

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