Cola in glass with ice isolated on white background from top view.

PepsiCo Abruptly Shuts Down Plant on South Side of Chicago

Oct. 28, 2024

Union demands answers, stating prior notice was not given for the closure of the more than 60-year-old facility early Monday morning.

Andy Hanacek

According to local news reports, PepsiCo has closed a plant on Chicago’s South Side, resulting in the loss of jobs for about 79 union workers there. Reports say the company shut the plant down this morning (10/28) without prior notice.

The union received a letter early this morning from the company stating the closure of the facility on west 51^stStreet would be effective immediately, and it claims PepsiCo has run afoul of the Worker Adjustment and Retraining Notification (WARN) Act, which requires a 60-day notice for such closures.

For its part, PepsiCo says the company will still pay union employees and provide benefits for the next 60 days, even though the employees will not be required to work at that time. The union has requested a meeting with the company and demanded an explanation for the abrupt shutdown.

In a statement to a local news affiliate, PepsiCo cited the age of the facility (more than 60 years old) and the physical limitations it faced as reasons for the closure, and stated it would support employees during the transition.

About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.