Union sues PepsiCo over abrupt closure of Chicago plant
CHICAGO (CBS) -- Teamsters Local 727 is sing PepsiCo for abruptly shutting down its warehouse in Chicago's Back of the Yards neighborhood.
The facility at 650 W. 51st St., about a block east of Halsted Street, closed last week—putting dozens of employees out of work. The truck drivers who worked at the facility were in limbo when it closed a week ago Monday, and employees showed up with no idea that the location was shut down effective immediately.
The union that represents more than 75 members at the plant said the warehouse has more than 200 employees. Many of them were not aware the facility was shutting down until they came to work on Monday morning and were told to pack up and go home.
Union leaders called the effort an "unlawful intent to close" the 51st Street facility. They said it's a violation of the Worker Adjustment and Retraining Notification (WARN) Act that requires employers with 75 or more full-time employees to provide 60 days advance notice of pending plant closures or mass layoffs.
Teamsters Local 727 announced Monday that it had filed suit in federal court over what it claims was a WARN Act violation. The union also accused PepsiCo of not paying the workers the money to which they are entitled with their severance package—failing to calculate overtime, premium par, and other benefits.
Pepsi denies any wrongdoing. The company released this statement:
"Complying with WARN, employees will be paid and continue to receive benefits as set forth in the collective bargaining agreement for 60 days. Employees will not be required to work during this 60-day period."