Have you been following this Republic Windows & Doors story in Chicago?
A brilliant union strategist (& probably a baby boomer) suggested a SIT-IN at a Chicago factory to take a stand and fight for American factory workers. Here’s what happened.
- Republic Windows & Doors closed its factory with three days notice. Supposedly, Bank of America canceled the company’s line of credit, causing the company to close its doors and default on its federally mandated requirement to notify employees.
- Under WARN, the employees should be given sixty days notice of
{ 16 comments… read them below or add one }
As I said on Twitter, I am glad that the union workers got their money but it was absolutely ridiculous how this was accomplished.
Now the sit in brought coverage to a situation that is happening all over the US. That’s not what ultimately led to the funding though.
When the criminal governor of Illinois threatened to pull all state business from Bank of America instead of actually seeking a solution that would help Bank of America *want* to keep financing Republic, that’s my irritation.
The state of Illinois used the fragile state of the economy as leverage to get Bank of America to make a loan that they will likely have to write down because guess what: if they can’t pay their employees, they certainly can’t pay on a million and a half dollar loan.
The reason B of A has received bailout money ($15 billion in all) is because they agreed to write down $27 billion dollars in subprime loans. So all of that money they received? It is gone. Clearly the bailout money wasn’t intended for this purpose so it is hard to hold this against B of A just because they agreed to take a $12 billion loss.
What I am tired of is government politicians like the fine governor using these times not as an opportunity to actually do something that makes business sense but to show that they are powerful enough to force a company to make bad loans for nothing in return.
And considering the pending charges against the governor as he was trying to leverage Obama’s seat for a position in a union, is it any surprise that he would do whatever it took to side with the union (even if the means were unjust)?
Every post should include a discussion of hippies!
I’m with Lance on this one. Blagojevich’s stepping in smacks of some kind of corruption – wonder if there’s more to this story beneath the surface. Obviously, B of A reps claim they had been in discussion for several months with Republic, but to no avail. So that company’s a credit risk, but I also wonder about the credit risk of B of A’s policy of extending credit to illegal aliens.
http://iblsjournal.typepad.com/illinois_business_law_soc/2008/04/post.html
And what about this story that Republic shifted equipment and assets to Echo Windows and Doors in Red Oak, Iowa
http://www.chicagobreakingnews.com/2008/12/republic-windows-job-cuts-protest.html
You should read the federal complaint against IL’s govenor 80 pages that will surely be made into a movie. As a former resident of IL I have been watching and listening as this has been playing out Rod Blagohvich is nuts.
@Lance Chase rushed in with additional liquidity, so we have a real mess between BofA and Chase and Blago. I’m sure he wanted his wife appointed to a job of some kind (maybe their board?) and I’m sure he was trying to salvage his reputation; however, Blago wasn’t the only politican in the mix. Rep. Luis Gutierrez, who has a pretty solid reputation in the community, was also there to broker a deal. It’s a clusterfuck, but as we talked about on Twitter — why do we need a sit-in to pay out federally guaranteed benefits?
@Breanne Stupid hippies.
@Hayli No one is clean in this mess.
@Nick I’m a lifelong Chicagoan (Albany Park) and Blago is my old congressman (after Rostenkowski was indicted). He’s a dick.
Loved your post, especially the part about the financial services industry lecturing the manufacturing industry. The arrogance of the Financial people, who produce nothing, has always bugged me. I’m with Barny Franks on the double standard in congress about having problems bailing out blue-collar but no problem with bailing out white-collar.
Having owned AIG and watched those mofo’s walk off with my $$, let me have the privilege of shoving me foot up their collective asses. Please. It would be MY privilege.
@Bob Amen. Class warfare at its finest.
@HRMaven Ugh, AIG. Don’t even get me started on the link between insurance and financial services. I worked for a storied insurance company in Chicago (Kemper) that was taken down by stupid investments and shitty oversight. Asschumps.
Labor Relations is back! Smithfield, UAW, Republic, SEIU scandals! (post forthconming)
@lance You should expect to see this type of work action increasing in days/months/years to come. It worked then, and apparently it works now. THere were nearly 9000 people in a Facebook group supporting the protestors in only 5 days.
@laurie please stop the blatant hippie discrimination!
@HrMaven check out this link to see why AIG should die.. retention payments, bullshit
@Nick Mrs. Blagojevich is pretty fucking nuts too
@Michael I’m anti-hippie. They aren’t a protected class (yet).
While you’re kicking butt, could you please include the publishing industry? And don’t stop kicking until they stop that ridiculous “returns” policy.
Last Tuesday, I was laid off from a company that provides services to the publishing industry. I say off with their metaphorical heads.
Thank you.
Which benefit protected by law were you talking about?
@Michael WARN. That’s a federal rule, s
OK, I’m going to be redundant, but I wrote this on HRMToday and then came over here to post it and saw Lance’s post, and references to a twitter tete-a-tete, and… well, being redundant now I guess is my way of feeling less left out.
btw, I did a post today on the financial industry. You’ll dig it. Fits right in with this.
btw #2, Laurie, you know I love you, right? That you’re the bomb? Just gotta make that clear right up front. Because…
The problem isn’t BofA here. They got a huge cash injection from the taxpayers, and with it, a stern warning: make good loans. The union took advantage of a hot political issue for its own gain. BofA is not obligated to loan money to a failing company (window manufacturer? housing starts like 90% 2+2=…?) They are obligated to help companies that have a shot at surviving. The union just extorted $1.5 million from BofA when it’s the company that screwed up in this case. (Underfunded employee obligations? Shocker.)
I see no difference between this situation and a CEO who demands the bonus he’s legally entitled to, save the ratio of dollars per person.
Well said!
WARN requires either 60 days notice or 60 days pay in lieu of notice. I think the vacation payout is either an Illinois state law or part of their union contract. I don’t believe there is any sort of mandatory obligation to pay severance unless they had something already covered in the collective bargaining agreement.
I think they were bitching to get paid their WARN notice pay and their accrued and earned vacation. Not sure ERISA applies here.
geeky HR comment finis. over and out