PepsiCo abruptly shuts down Chicago facility, leaving 79 workers jobless

CHICAGO - PepsiCo has abruptly closed its facility in Chicago's Back of the Yards neighborhood, leaving approximately 79 Teamsters Local 727 union workers without jobs. 

The company sent the union a letter early Monday morning informing them of the immediate closure of the facility located at 650 W 51st Street. The union claims Pepsi bypassed the required 60-day notice under the Worker Adjustment and Retraining Notification (WARN) Act.

"That Pepsi would do this to their longtime employees is disgusting. They are a disgrace," said John Coli, Jr., Secretary-Treasurer of Local 727. "The Union will do everything in its power to ensure that these employees are taken care of per the Union contract and the law."

However, Pepsi said the company plans to pay union employees and continue to provide benefits for 60 days. Employees will not be required to work during those 60 days. 

PepsiCo facility located at 650 W 51st Street in Chicago | Photo courtesy of Google Street View

The Teamsters Local 727 union said it has reached out to Pepsi representatives, but their calls have gone unanswered. 

The union has demanded an explanation from Pepsi and has requested a meeting with the company on Wednesday to discuss the situation.

PepsiCo provided Fox 32 News with the following statement: 

"The decision to no longer operate at 51st Street is a difficult one. This is a more than 60-year-old building that has physical limitations. Our top priority is to support our employees during this transition, and our commitment to serve Chicagoland remains strong. Our plans meet applicable legal requirements and we will actively work with Union leadership on the details related to the closure."