PepsiCo closes Argentina snacks factory - Just Food
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PepsiCo closes Argentina snacks factory

29 Jun 2017

Workers from PepsiCo blocked the entrance of a logistics facility 40km north-west of Buenos Aires today (29 June) to protest the US group’s decision to shut down a nearby snacks plant.

PepsiCo is to shut the factory in Florida, a suburb of the Argentinian capital and has agreed with union officials to grant affected staff compensation doubles the amount required to pay by law and includes other benefits such as sustaining health insurance.

Over 690 people worked at the Florida plant, of which 155 have already been relocated by PepsiCo at other local facilities and establishments.

The remaining 500 workers continue to receive a salary and only a few who opposed the union’s agreement have been protesting shutdown of the facility. Today, they prevented trucks from the logistics firm TASA leaving facility in the city of Tortuguitas from delivering PepsiCo products.

The Florida plant manufactured mainly salty snacks, which will now be produced in another plant PepsiCo owns 430km further south in Mar del Plata.

PepsiCo said the decision to shut the site was due to the obstacles inherent to its location in a residential area, along with its complex cost structure and logistics requirements. 

The company is looking to recruit more staff for the Mar del Plata plant. PepsiCo said it would be more efficient being closer to potato suppliers while it implement new production technology at the site.