Pepsi Blames Beverage Tax For Plant Closure

BALTIMORE (WJZ) -- There's growing outrage over layoffs at Baltimore's Pepsi plant.  Dozens of people are losing their jobs.

Adam May reports many blame the mayor and City Council.

The decision to eliminate more than 20 percent of the workforce, or 77 workers, at the Pepsi plant has renewed calls to repeal a controversial city tax.  The workers were laid off after the company decided to quit making soft drinks at its Hampden location.

"In the case of Baltimore, as you know, there was a beverage tax that was passed here and this case did not help the decision in terms of keeping the Baltimore plant open," said Pepsi spokesman Mark Dollins.

The two-cent tax on bottled beverages went into effect last year.  The mayor says Pepsi is using it as a scapegoat.

"It's certainly disappointing to me as mayor and I'm very sorry for the individuals that lose their jobs, but they made a business decision and they're trying to get publicity out of their opposition to the bottle tax," said Mayor Stephanie Rawlings-Blake.

"There will be more," said Rob Santoni.

The owner of Santoni's Supermarket in Highlandtown advertises that his store pays for the tax so customers won't have to.

"Since the day the bill was passed, we're full steam ahead, trying to get it repealed," Santoni said.

Some members of the City Council voted against the tax fearing this exact scenario.

Pepsi's Sales and Distribution Operations will continue in Baltimore, still employing 320 people.