PepsiCo has unexpectedly closed a Chicago facility located in the Back of the Yards neighborhood, a decision that has drawn sharp criticism from local union leaders and left dozens of employees suddenly without work. The closure, announced early Monday morning, affects 79 union-represented workers, many of whom were informed only hours before the facility’s shutdown.
The sudden closure has blindsided employees and union representatives alike. Teamsters Local 727, the union representing the affected workers, voiced strong disappointment with PepsiCo’s decision, alleging a lack of communication and transparency from the company. “These workers had no warning, and to have their livelihoods taken away so suddenly is shocking and unacceptable,” said a union spokesperson, adding that the union is pushing for further explanations and support for the displaced employees.
PepsiCo has yet to release detailed reasons for the abrupt closure, although the company stated that it made the decision as part of a strategic restructuring effort. However, local leaders and union advocates argue that such decisions should involve more consultation and notice to workers whose lives and incomes depend on the facility’s operations.
For employees, the sudden job loss is a significant blow, and many are now scrambling to assess their options. PepsiCo has not confirmed any plans for severance packages or job placement assistance for affected workers, leaving the union to explore potential legal avenues to support its members.
The Back of the Yards facility’s shutdown is the latest in a series of closures across various sectors as companies seek to cut costs and restructure operations. The ripple effects of this abrupt move are being felt deeply within the local community, where the facility has been a longstanding source of employment.
As workers face the uncertainty of sudden unemployment, the union continues to press PepsiCo for answers and support, with community leaders urging the company to reconsider its approach to such drastic decisions in the future.
