Shock and Dismay: PepsiCo’s Last Chicago Plant Shutters Without Warning
In a stunning development that has sent shockwaves through Chicago’s workforce, PepsiCo abruptly closed its last remaining plant in the city, leaving 150 workers jobless just as the holiday season approaches.
The closure, announced Monday morning, has sparked outrage among employees and union representatives who claim they were blindsided by the decision.
Daryl Smith, a 29-year veteran of the plant, arrived for his regular shift as a forklift operator only to face the devastating news. “We were completely caught off guard,” he says, his voice heavy with emotion. “One minute I’m doing my job; the next minute they’re telling us it’s over.”
The closure announcement came at 5:45 AM, catching both workers and Teamsters Local 727 by surprise. The scene was particularly jarring, with employees noting an unusually high security presence on site—a detail that would soon make sense as the company delivered its shocking news.
PepsiCo’s Official Statement The beverage giant defended its decision, citing the facility’s age as the primary reason for the shutdown. “This is a more than 60-year-old building that has physical limitations,” a company spokesperson explained. They added that supporting affected employees during the transition is their “top priority.”
The Human Cost Behind the corporate decision lies a profound human impact. Workers like Smith, many of whom have dedicated decades to the company, now face an uncertain future. “What are we going to do for our income now?” Smith asks, echoing the concerns of his colleagues, some of whom have worked at the facility for up to 40 years.
Union Response and Legal Action The closure has sparked immediate pushback from union leadership. John Coli, Secretary-Treasurer of Teamsters Local 727, didn’t mince words: “To lay off over 100 Teamsters workers with no notice is about as low as you can get.”
The union plans to take legal action, arguing that the closure violates both their collective bargaining agreement and the Worker Adjustment and Retraining Notification Act.
Financial Impact and Timeline According to documents obtained from PepsiCo, workers will receive pay and benefits until December 28, 2023, the official closure date. However, this offers little comfort to employees who feel betrayed by the lack of advance notice. “If they had told us a month ago, people could have found other jobs,” Smith points out.
Looking Ahead For Chicago’s workforce, the closure represents more than just job losses—it marks the end of an era in the city’s manufacturing history. The plant’s shutdown raises questions about the future of industrial employment in urban areas and the responsibility of major corporations to their long-term employees.
Community Impact The ripple effects of this closure will likely be felt throughout Chicago’s economy. Local businesses that served plant workers, nearby suppliers, and the broader community will all feel the impact of this sudden shutdown.
As former employees like Smith contemplate their next moves, the closure serves as a stark reminder of the uncertainties facing America’s manufacturing workforce. “We all cherished our jobs and felt we would be there forever,” Smith reflects. “This isn’t just about losing a job—it’s about losing a part of our lives.”
The story continues to develop as union representatives prepare their legal response and workers begin the challenging process of seeking new employment opportunities during the holiday season.