laid off workers occupy factory in Chicago

[keith in RI]

Idled workers occupy factory in Chicago

By RUPA SHENOY, Associated Press Writer Rupa Shenoy, Associated Press Writer – 30 mins ago

CHICAGO – Workers laid off from their jobs at a factory have occupied the building and are demanding assurances they'll get severance and vacation pay that they say they are owed.

About 200 employees of Republic Windows and Doors began their sit-in Friday, the last scheduled day of the plant's operation.

Leah Fried, an organizer with the United Electrical Workers, said the Chicago-based vinyl window manufacturer failed to give 60 days' notice required by law before shutting down.

Workers also were angered when company officials didn't show up for a meeting Friday that had been arranged by U.S. Rep Luis Gutierrez, a Chicago Democrat, she said.

During the peaceful takeover, workers have been shoveling snow and cleaning the building, Fried said.

"It's a rarely used tactic," Fried said. "But we're in very drastic time and the workers have taken measures necessary to win what they're owed."

Representatives of Republic Windows did not immediately respond Saturday to calls and e-mails seeking comment.

Police spokeswoman Laura Kubiak said authorities were aware of the situation and officers were patrolling the area.

Crain's Chicago Business reported that the company's monthly sales had fallen to $2.9 million from $4 million during the past month. In a memo to the union, obtained by the business journal, Republic CEO Rich Gillman said the company had "no choice but to shut our doors."

[AntonLee]

they could make their statement outside the building in the street.  I got laid off yesterday myself, sure I get to come back early January, but this is the toughest time of year to get laid off. . .

doesn't mean you protest on private property

[doobie]

I saw an article by Obama which he said he supported the workers.  Sad...sad...sad...  What happened to our country?

[neggy]

They are a union shop, so they feel some sense of entitlement I guess

CitiBank cut the companies line of credit off, and unless you have working capital, you borrow it.

Without money to buy raw materials and make payroll, they closed down

No different from any other business.

Just a matter of securing another credit line, assuming the company is financially viable.

Much ado about nothing.

[John Edward Mercier]

No. They are remaining on the property until their contract is honored.
They have pay and benefits due them... and are worried that it will be lost.

[KBCraig]

If I owned the company, I'd treat them like the dog who caught the car.

"Fine, you got it, now what are you going to do?"

Go ahead, order supplies and start producing products and shipping to customers, so that you can get your "fair share" of the profits.

Let me know how that works out for you.

[neggy]

 IF THE COMPANY GOES BANKRUPT, THE CONTRACT GOES BYE BYE

The union ( and I am a union member) should be in there helping to get whatever product is in there out to the customers so there will be cash flow.

No bank is going to lend to a company that is in that position. Maybe the union pension fund can invest in the company in return for an ownership position?

Are they owed accrued vacation YES, are there COBRA considerations yes, you know all of them have applied for unemployment, even though they are not actively seeking work because they are too busy being part of the problem and not part of the solution.

Anyone want to bet how long it takes for the chapter 11 filing? The company has no other choice at this point IMHO

[K. Darien Freeheart]

and are demanding assurances they'll get severance and vacation pay that they say they are owed.

This line makes me wonder though. If this is the general entitlement mentality of the news reporter, fine.

However, if those employees contracted with the company and it's a breech of contract, the company's line of credit is gone and they've got not other assets by which to meet their contractual obligations I think it might be fair for them to claim the property itself.

I'm making assumptions there that there was indeed an employment contract in place, I don't know.

[keith in RI]

i think the argument is over a federal law saying any business that closes its doors must give xxx amount of time for notification or pay the employees that much in wages..... i could be wrong but i think thats what it is. (a law and not an employment contract that was dishonored)


i just found this quote in another article:
     "Leah Fried, an organizer with the United Electrical Workers, said the Chicago-based vinyl window manufacturer failed to give 60 days' notice required by law before shutting down."

[neggy]

I'm sure CitiBank didn't give the company 60 days either.

Most companies, at least smart ones will close up shop on no notice and pay them 60 days as severance because it is cheaper than the damage unhappy employees will do while waiting for the doors to be locked.

The Government should not be in the business of forcing employers to give 60 days notice or pay.

It isn't that I don't feel bad for the employees, but they have to realize they don't look good doing this.

[keith in RI]

i disagree. i think to main street usa this makes these people look great! standing up for the average worker etc........... also this just came out. i cant help but think this is just the begining of this kind of thing........



Workers win: Bank to give credit to Chicago plant

CHICAGO – Bank of America says it will extend credit to a Chicago window and door maker whose workers have occupied the factory for five days.

The bank said Tuesday that it's willing to give the Republic Windows and Doors factory "a limited amount of additional loans." That's so it can resolve claims of employees who have staged a sit-in since Friday.

The factory closed Friday after Bank of America canceled its financing.

Workers were given three days' notice. But they refused to leave and vowed to stay there until receiving assurances they would receive severance and accrued vacation pay.

The bank has been criticized for cutting off the plant's credit after taking federal bailout money.

[neggy]

It is nothing but a temporary measure and the union is still acting like thugs.

The creditor of a Chicago plant where laid-off employees are conducting a sit-in to demand severance pay said Tuesday it would extend limited loans to the factory so it could resolve the dispute, but the workers declared their protest unfinished.

The Republic Windows and Doors factory closed last week after Bank of America canceled its financing. About 200 laid-off workers responded by staging a sit-in at the plant, vowing to stay until getting assurances they would receive severance and accrued vacation pay.

Their action garnered national attention, seen by some as a symbol of defiance for workers laid off nationwide.

A resolution appeared closer when the bank announced that it had sent a letter to Republic offering to "provide a limited amount of additional loans" to resolve the employee claims.

The bank appeared to side at least in part with disgruntled workers, expressing concern in a statement Tuesday "about Republic's failure to pay their employees the Employee Claims to which they are legally entitled."

Bank of America has been criticized for cutting off the plant's credit after taking federal bailout money itself.

So they are getting enough cash to make the employees happy... but it says nothing about enough capital to keep the business running again. As long as the union goons got theirs the big picture doesn't matter I guess.  BOA will be auctioning off the equipment and the high bidder will be putting it on a boat to China within a month. With the amount of ship traffic headed from China to the US it is now feasible to send the specifications, drawings, and CAM programs to China via EMail, and have the parts made and in a container bound for California in a weeks time. Then onto a train and it is in Chicago in 3 days after leaving the west coast.

[John Edward Mercier]

The workers are only entitled to the contract wages... not their jobs.
The fact is that creditors should always be aware of deferred compensation contracts...
BOA is paying the workers to remove any legal claims they may be entitled for restitution... since these would most likely be first against remaining company assets anyways.