PepsiCo’s Cheverly Layoffs: State Notice Lists 143 Jobs, With Pay Ending Nov. 13

Employers

The 143 workers PepsiCo laid off at its bottling site in Cheverly, Maryland, last month are nearing the end of their paid transition. Maryland’s official layoff log shows the company’s notice was filed Sept. 14, the same day the layoffs took effect, and lists Nov. 13 as the effective date, the day the company has said pay and benefits for affected employees will stop.

The entry in the Maryland Department of Labor’s dislocation notice log names the employer as CB Manufacturing, Inc., doing business as Pepsi Beverages, at 2611 Pepsi Place, listed with a Hyattsville mailing address, in Prince George’s County. It records 143 affected workers, an industry code for soft drink manufacturing (NAICS 312111) and the event type “Mass Layoff – No Recall,” meaning the employer does not expect to bring the workers back.

What was cut and what remains

The layoffs end manufacturing and warehouse operations at the site. According to the company’s WARN notice as quoted by Just Drinks, PepsiCo said it “will lay off employees in its fleet, transport, manufacturing and production warehouse operations, as well as other salaried employees, at the facility.” The notice said sales and delivery operations “will continue without disruption.”

Of the 143 workers, 98 are represented by a union, Teamsters Local 639, according to WJLA and Just Drinks. Just Drinks reported that the company’s contract with the local may give affected employees bidding rights for available positions. The Town of Cheverly initially said 98 employees were affected; the company later corrected that, saying all 143 were let go, WJLA reported.

PepsiCo attributed the decision to changes in its business. “This decision was not made lightly,” the company said in a statement reported by Food Dive and Just Drinks, adding that “we must continue optimizing and modernizing our network to best serve customers and consumers.” A company spokesperson told Food Dive and FOX 5 DC that affected employees would keep pay and benefits through Nov. 13. That date falls 60 days after Sept. 14, the length of advance notice the federal WARN Act generally requires before a mass layoff or plant closing.

The local stakes

The plant has operated for more than 60 years, according to the company’s statement as reported by FOX 5 DC. Prince George’s County Council member Jolene Ivey, who lives in Cheverly, told NBC4 Washington that the building had grown costly to maintain. “The building is so old,” she said, adding that “the upgrades were so expensive and they were having problems with being able to keep the electricity going all the time.” She also said, “It’s hard for the people who are losing their jobs, 100% that is the most important thing.”

A Cheverly official told NBC4 the plant is the town’s highest-grossing revenue generator, bringing in roughly $200,000 a year. Town Administrator Dylan Galloway said in a statement that “these workers are part of our community,” and that the town is committed to connecting affected workers with available resources. Town officials have asked PepsiCo about the facility’s future, WJLA reported; no plan for the site has been made public.

A pattern of network changes

Cheverly is the latest in a string of PepsiCo plant changes. Just Drinks noted that the company said in February it would permanently close its Rancho Cucamonga, California, facility after ending manufacturing there in 2025, and that it announced a Frito-Lay plant closure in Orlando, Florida, last November.

For the Cheverly workers, the Nov. 13 date is the practical deadline. Workers laid off in Maryland can draw on the state’s Rapid Response services, which the Department of Labor offers to employers and employees affected by layoffs and closures.

Sources

Featured photo: A Pepsi plant at 112-02 15th Avenue in College Point, Queens, New York, seen from across 15th Avenue on June 22, 2016. Representative image; not the Cheverly, Maryland, facility. Photo: Jim.henderson, via Wikimedia Commons (CC0). Cropped from the original.

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