Union Sues Pepsi Over Sudden Plant Closure, Affecting Workers
Teamsters 727 has filed a federal lawsuit against PepsiCo after the company abruptly shut down its Back of the Yards facility in late October without providing proper notice. The union claims that PepsiCo violated the Worker Adjustment and Retraining Notification (WARN) Act by failing to give a 60-day notice before the closure, affecting over 100 employees.
The lawsuit also alleges that PepsiCo did not include overtime, holiday pay, and other benefits in the severance payments required under the WARN Act. On October 28, workers arrived to find the plant, located at 650 W. 51st St., closed without prior warning, and were told they would receive pay and benefits until December 28, even if not working.
PepsiCo stated that the closure was due to the plant’s aging infrastructure, but union representatives have expressed skepticism, noting that the company provided conflicting reasons for the decision. The closure is part of a broader restructuring, with PepsiCo also shutting down facilities in Pennsylvania and Ohio.
Employees, many of whom had worked at the plant for over 10 years, were blindsided by the decision. Some workers, like Daryl Smith, who had been with PepsiCo for nearly 30 years, expressed shock and sadness. Many are now scrambling to find new employment, with some hoping for a severance package to ease the transition. The closure has deeply affected the local workforce, leaving many uncertain about their future.
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