Employees at South Side Pepsi plant shocked to find facility closed

CHICAGO (CBS) -- A Pepsi warehouse on Chicago's South Side abruptly shut down and workers said they received no notice.

The truck drivers who worked at the facility near 51st and Halsted were in limbo 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 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.

"It's an injustice," said Daryl Smith, a forklift operator at the plan. "After 29 years, I've been here. People have dedicated their lives, their hearts, and everything, and this is the way they treat us. It's a sad situation."

Smith said he saw his co-workers cry after hearing the news.

"They told us the plant is not doing good," he said. "Other facilities around will be closed. This is one of them. That was it. They gave us garbage bags [to] pack our stuff and told us to leave."

Pepsi agreed to continue paying and providing benefits through the end of December. In a statement, the company said, "The decision to no longer operate at 51st Street is a difficult one. This is a more than 60-year-old building that has physical limitations. Our top priority is to support our employees during this transition, and our commitment to serve Chicagoland remains strong."

Union leaders said they negotiated a four-year agreement that covered the South Side facility and three others just this past April. The ratified contract came after members threatened to strike over the need for higher wages and better healthcare.

"Quite frankly, we have a well-performing facility, a long experienced work force, and a market like Chicago that drinks a lot of Pepsi," said John Coli, the union's secretary treasurer. "It's really hard not to imagine that it's not retaliation."

Union leaders said they're scheduled to meet with Pepsi on Wednesday, when they're hoping to get more answers on the closure.