According to a letter obtained by the Chicago Sun-Times, 79 employees lost their jobs, although 150 people worked at the plant.
Workers at Pepsi in Chicago received shocking news as the company announced the immediate shutdown of the city’s last remaining plant on Monday.
All employees, including 55-year-old Daryl Smith, learned about the closure at around 5:45 a.m. ET, just as Teamsters Local 727 received formal notice from Pepsi’s lawyers. Smith observed many security personnel present, but it didn’t concern him until he was asked to return to work at 5:45.
“When I walked in, I asked what was happening and if the plant was closing,” Smith recounted to YSL News. “They seemed downcast and told me… it’s an aging facility. They wouldn’t invest more into it, and the plant was officially closed today.”
PepsiCo Beverages North America described the decision to close the plant as “challenging” in a statement.
“This building has been in operation for over 60 years and has several physical constraints,” the company stated. “Supporting our workers during this transition is our main concern, and we remain committed to serving the Chicago area… We will follow all legal requirements and work closely with union representatives regarding the closure details.”
Smith, who operated a forklift overnight and is part of the union, expressed that he and his coworkers felt “completely taken by surprise.”
“They left us no time to prepare… If we had been informed a month earlier, some could have found new jobs or secured severance based on their years of service,” Smith highlighted. “I’ve worked there for 29 years. Many have been there for 40 years. What do we do now for our income?”
Closure of the Pepsi plant perceived as a ‘slap in the face’, employee states
The Teamsters Local 727 intends to pursue “every possible legal action” to advocate for its union members after the unexpected plant closure, which occurred without union consultation and breached the Worker Adjustment and Retraining Notification Act, according to their statement to YSL News.
In a letter acquired by the Chicago Sun-Times, Pepsi stated that workers would continue to receive pay and benefits until December 28, the date set for the facility’s final closure. The letter indicated that while 79 workers were officially laid off, the total employee count at the plant was 150.
Pepsi did not respond to YSL News’s questions regarding the overall number of layoffs or plans for the facility moving forward.
“To lay off over 100 Teamsters workers without any warning, and in direct violation of our collective bargaining agreement and legal requirements, is appalling,” stated John Coli, secretary-treasurer of Teamsters Local 727. “Our members are aware – they see the headlines. Pepsi is profiting immensely.”
Pepsi employee reflects on future: ‘It’s very unsettling’
Smith, who intended to retire early after 31 years with the company, is now unsure if he should seek a part-time or full-time job.
“I’m uncertain about my next steps,” Smith confessed. “I just left the plant and it’s overwhelming.”
“We all value our jobs and believed we would stay there indefinitely. We put in the effort to make the company succeed,” Smith remarked. “You would never anticipate they would just close the doors without warning. It’s utterly shocking.”
Coli added that shutting down the “only production site in the Chicago area is illogical.”
“We recently completed negotiations with Pepsi this past summer – they had the chance to inform us about their plans and act sincerely,” Coli mentioned. “Furthermore, with the holiday season approaching, I find it incredibly disappointing. My words cannot fully capture how disgraceful this is.”
