PepsiCo facing federal lawsuit over closure of Chicago facility

Bottles of Pepsi
Photo credit Richard Levine/Corbis via Getty Images

(WBBM NEWSRADIO) — PepsiCo has been targeted in a new federal lawsuit one week after the abrupt closure of its Back of the Yards warehouse, which left nearly 80 employees out of a job.

Officials with Teamsters Local 727, who called PepsiCo’s behavior “unimaginably egregious,” said the union has filed a lawsuit that demands back pay, overtime, and other forms of relief through the Federal Worker Adjustment and Retraining Notification Act.

In its lawsuit, the union said PepsiCo violated that act on Oct. 28 when it closed the plant, located at 51st in Halsted Streets, without notifying the 79 affected union workers ahead of time.

Leaders with PepsiCo and the union met last week, and during that meeting the union said it was told the closure “was being contemplated for months, and it was a result of the company being over capacity.”

Chicagoland is one of the biggest markets for PepsiCo beverages.

In a statement, the union said not having a production facility just doesn't make sense.

WBBM Newsradio has reached out to PepsiCo leaders for comment.

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Featured Image Photo Credit: Richard Levine/Corbis via Getty Images