Pepsi Lies to Teamsters Local 727 at Bargaining Table About Plans to “Offload” Blue Cloud Distribution Work
On February 26th, representatives of PepsiCo reached out to Local 727 attempting to give notice of intent to “offload” the Blue Cloud Distribution program to established alcohol distributers, effectively discontinuing the program at the 35th Street and Elk Grove facilities. During this brief discussion, PepsiCo assured the Union that this decision was not based on a Chicagoland issue and instead was based on nationwide issues.
The Company had included this issue in its first proposal to the Union during bargaining last week but had no information to provide at that time. It appears PepsiCo clearly had more information than it claimed during bargaining as the Company met directly with members, without permission from the Union, about its proposal to discontinue Blue Cloud. The Company now claims it will have more information in mid-March and will allegedly update the Union as information becomes available despite failing to do so thus far. According to PepsiCo representatives, the Company would like to keep operations running “as usual” until May.
PepsiCo and Local 727 entered into a Letter of Agreement at the onset of the Blue Cloud program which the Union intends to enforce and hold the Company to; a fact that the Union reminded PepsiCo of during bargaining. In response, the Company assured the Union that no current Blue Cloud Distribution employee would be laid off. The Union has demanded to bargain over the Company’s most recent act of deception and is preparing an information request to investigate the veracity of the Company’s statements thus far. The Company cannot unilaterally make changes while the parties are bargaining a successor contract and its attempt to do so will not be tolerated. The Union intends on reminding PepsiCo of this during the negotiations which are currently scheduled to resume on March 5th.
Members with questions should reach out to Business Agents Mike DeGard (35th St) or Melissa Senatore (Elk Grove) at (847) 696-7500.
Nothing in this article should be read as the union’s waiver of any legal argument, position or grievance(s), or as a waiver of any rights, arguments, or defenses under any contract, collective bargaining agreement, or applicable law. The union does
not forfeit its right to make any and all supplemental arguments.
Category: Pepsi, Union News
