PepsiCo announced on Monday that it will be closing a bottling facility located in Chicago, a decision that the Teamsters union claims will affect approximately 150 employees.

The company characterized the choice as a difficult one but deemed the 60-year-old facility to have “physical limitations.” As part of this transition, PepsiCo has committed to compensating the workers for 60 days, even though they will not be required to report to work during this period.

Teamsters Local 727, which represents the workforce at the plant, received notice of the closure early on Monday through an email from PepsiCo’s legal team. The union contended that this move was a breach of federal law, which mandates that employers provide 60 days’ advance notice of any impending plant closures or large-scale layoffs at facilities employing 50 or more people.

John Coli Jr., the secretary-treasurer for Local 727, expressed his discontent in a statement, referring to the company’s actions as unacceptable. He highlighted that laying off over a hundred Teamsters workers without any prior notice to either the employees or the union constituted a violation of both their collective bargaining agreement and federal law.

Coli also mentioned that the union had recently negotiated a new contract with PepsiCo this past summer and was not made aware of any potential closure, indicating the possibility of legal action against the company may be on the horizon.

In its response, PepsiCo asserted that the planned shutdown complies with all “applicable legal requirements” and expressed willingness to engage with the union regarding the situation.

PepsiCo emphasized that supporting its employees during this period of transition is its top priority and reaffirmed its dedication to serving the Chicago area.