Chicago Workers Reach Deal, End Sit-In

Employees Laid Off From Factory Will Get 8 Weeks' Salary, Accrued Vacation Pay, And 2 Months' Health Care

(CBS/AP)  Jubilant workers, cheering and chanting "Yes We Can," celebrated outside a Chicago factory after approving a $1.75 million agreement to end their six-day sit-in, which had become a nationwide symbol of the plight of labor.

Republic Windows & Doors, union leaders and Bank of America reached the deal Wednesday evening. Workers carrying sleeping bags left the North Side factory within hours.

About 200 of 240 laid-off workers began their sit-in last week after Republic gave them just three days' notice the plant was closing.

They vowed to stay at the factory until they received assurances they would get the severance, accrued vacation pay, and other benefits due them under the federal Worker Adjustment and Retraining Notification Act (WARN), which covers employees who lose their jobs in a plant closing or other mass layoff.

Each former Republic employee will get eight weeks' salary, all accrued vacation pay and two months' paid health care, said U.S. Rep. Luis Gutierrez, who helped broker the deal. He said it works out to about $7,000 apiece.

"We lost the jobs but we got something," said Lalo Munoz, who worked at the plant for 24 years.

Gutierrez, an Illinois Democrat, said $1.75 million will go into an escrow account for the workers, $1.35 million of which came from Bank of America in the form of a loan to Republic.

"Although we are a lender with no obligation to pay Republic's employees or make additional loans to Republic, we agreed to extend an additional loan to be used exclusively to pay its employees," David Rudis, the bank's Illinois president, said in a statement.

New York-based JPMorgan Chase & Co. pledged $400,000 to use strictly for the protesting employees, Gutierrez said.

The workers are "very, very satisfied" with the agreement, said Mark Meinster of the United Electrical Workers union, which represents the employees.

"Hopefully this is an example for workers across the country that when things like this happen, you can step up, you can speak out, and you can win," he said.

The sit-in came to embody mounting anger over the government's willingness to bail out deep-pocketed corporations but not average people, notes one labor organizer.

"There's a simplicity and straightforwardness to this particular case that anybody can wrap their head around," James Thindwa, executive director for Jobs With Justice in Chicago, told WBBM.

Lawmakers earlier criticized Bank of America for cutting off funds to the plant after it exhausted its credit line even though the Charlotte, N.C.-based bank itself received $25 billion from the government's financial bailout package. The bank was given that money so it could provide credit to companies like Republic that employ workers, Meinster said.

"We're hopeful the banks got that message," he said. "My sense is it's going to take a lot more."

Around 100 supporters of the workers gathered Wednesday in downtown Chicago where negotiators were meeting, some beating drums and others chanting: "They got bailed out. We got sold out."

"This money is not, under any circumstance, to be used for corporate bonuses, luxury cars or any other perk for the owners of the plant," Gutierrez said in a statement.

Republic officials did not return messages on Wednesday from The Associated Press. Messages left seeking further details from JPMorgan Chase were also not returned.

Rudis said Republic is "unable to operate profitably." Over the past two years, the factory lost $10 million while borrowing the maximum amount possible under its agreement with Bank of America, the company said.

[csuresh]

Whoever is blaming Unions for this problem does not understand that the company laid off these workers because it is moving its operations to Ohio and not because it had no business or was run inefficiently. The company did not want to pay the workers the due compensation claiming no loan money coming from Bank of America.

The lesson to learn from this incident that our government gave our money to all these banks without making sure that they will use that money to extend credit to businesses and not using it to pay bomuses or acquiring other banks.

[jpatterson92]

Great. The union stood up to the business. It got them what the employees were owed by law. So now what? All these guys are out of work. Where was the union to help the company improve productivity, be competitive, and stay in business? Sad but true.... When Americans choose unions, America lose jobs.

[solarrays247-2009]

Chicago Workers hold company hostage and "WIN, they steal $1.75 million and everyong things they are great. I hope my kds don''''t read are hear about this. Might as well unlobk all the jails and let every one out.
Posted by hitoyou11 at 10:44 AM : Dec 11, 2008

You got it backwards, Sparky! Those workers EARNED that money! That company would have been quilty of stealing from their workers if those workers had not stood up for themselves!!

....or do you just like to spout off just to see your words in print, regardless of how idiotic they read? Ok...you just received your 15 seconds of fame...now why don''t you go get yourself an education and learn about reading comprehension? And maybe get a job?

[blog_fever]

Praise the Lord! This is the day that the lord has made; I will rejoice and be glad in it.

[hdc77494]

BoA was pushed to take tresury money, they didn''t need it.

[hdc77494]

So the company ran out of money and the employees held up a bank for $1.3 million. Sounds just like Acorn bending arms to get banks to make subprime loans. And the bank is supposed to get repaid how??

[irmcvet971]

BOA got some of my tax dollars and now has passed those on to the unemployed. Why doesn''''t everyone losing their jobs get the same deal?

Posted by drputt45 at 09:32 AM : Dec 11, 2008

Maybe because not all employees have a collective bargaining agreement and a UNION! Good grief!!

[irmcvet971]

Posted by cattieJ at 09:09 AM : Dec 11, 2008

You spout a lot of garbage as if someone OTHER than the Company was at fault. IF there were Illegals the UNION didn''t hire them... The LAW is the law, contracts are contracts and these people EARNED what they got.

[irmcvet971]

"Hopefully this is an example for workers across the country that when things like this happen, you can step up, you can speak out, and you can win," he said.

It''s about time. Our fathers had to deal with much worse!

[hitoyou11]

Chicago Workers hold company hostage and "WIN, they steal $1.75 million and everyong things they are great. I hope my kds don''t read are hear about this. Might as well unlobk all the jails and let every one out.

[drputt45]

BOA got some of my tax dollars and now has passed those on to the unemployed. Why doesn''t everyone losing their jobs get the same deal?

[biblethumpar]

cattieJ , maybe you did not work hard enough?

[cattiej]

Rep. Luis Gutierrez, the man who helped the women from Mexico stay in the store front church with her son illegally for months. So he is another of the behind scenes politicans who are working for a select group of people. How much of their money did they have to pay him or Bloneyvitch. Is this man on the list to replace Barack Obama as State Senator? I know that he is in favor of comprehensive immigration and giving the 11 plus million illegal aliens that our in our country amnesty...need I say more...I think he is just another of the dirty corrupt politicans in Chicago. Time to throw his butt out too.

[cattiej]

People, we have to realize that the electrical union, the one where Baloneyvich appeared for his photo op the other day probably brokered this deal. Baloneyvich also pressure the Bank of America (I wonder how much they paid him) that Illinois Government wasn''t going to do business with them it they didn''t comply with his orders. Since when does a Governor run a Private Business like the Republic Window and Door company. How many of the Latino''s working there are legal workers. Many are probably working illegally on someone else''s Social Security number.The Feds need to go into the plant and check ID''s.I lost my work and the Governor never helped me. My friends the same. I don''t want the Governer to do anything but resign or I am going to find a group of citizens who want to impeach him and add my name to the list. Chicago is a sancuary city for illegals, is it any wonder, with such corrupt politicans and police. Where is the Mayor Daley in all this...he is in hiding...probably collecting his money to move it to an off shore account.

[beauin]

$7,000.00, *** thats a first class ticket back to wherever rock they crawled out from under. I personally have een laid off twice, I got squat. I had been with the CWA & UBEW and they both screwed me, guess I wasn''t latino. So take your lazy union butts down to the unemployment office where you belong. maybe they can find these "employees" jobs like flipping burgers, or working retail. Let them find out what real work is.....

[biblethumpar]

demswin08 , you should go and count them yourself, you look to be aching for a mob..

[irmcvet971]

sorry vet wasn''''t attacking you just the idea Obama will let his health care plan go by the wayside and leave seniors worse off than ever.
I too got a 60.00 incrase per month but it don''''t do spit to help us out. Its just 60.00 some other leach from the corporate machine will figure out how to take.

Posted by demswin08 at 05:05 AM : Dec 11, 2008

Well yes I believe he can and will deal with the Health Care issue... I just KNOW that if you toss all those workers and man there are a LOT of retirees of the Big Three here, if you allow those Companies to go under, those people will be without the Coverage they have now and will just become a much BIGGER Problem is my point. LOL

[irmcvet971]

Wow Vet,That was harsh for a man who I have seen backing Obama. That says alot about your faith in him.

I too live on social security. My electric company offered me a budget plan which just last month alone saved us $60.00, as I have had my heat on here in NC due to the abnormal cold.
In the summer it should save us almost 80.00 a month with our ac running.

Posted by demswin08 at 05:01 AM : Dec 11, 2008

You obviously do not know much about Bankruptcy and what happens when you get in that meat grinder! IF it gets to January, IF they can stay alive until the Democrats take over, It will be fine. The Problem is the Fascist see a chance to bust that Union and will force it into bankruptcy before Obama can take over. But I do know what you are saying... I to am retired although I did retire from a Union Shop and have a defined benefit pension plus social security.

[irmcvet971]

Why would Bank of America make such a loan if there are no prospects of repayment?

Something smells funny!


Posted by nowaymcgoo at 02:35 AM : Dec 11, 2008

Why do fascist always smell something funny when they loose? LOL It''s simple! The City and State Leaders said IF you can''t lend this Company enough money to take care of what is OWED these workers then forget doing business with the City and State. That''s what can be accomplished when we come together as people and focus on being American''s. As I understand it the Assets of the Company will more that cover the cost.

[irmcvet971]

The media is asking too many questions about Obama''''s association with Blagojevich. Someone needs to stop them.

Posted by hillaryin016 at 02:14 AM : Dec 11, 2008

Man there is something SERIOUSLY wrong with you!! I mean it! You sat there and defended the WORST President this nation has EVER had. You sat there and defended that Administration and his Party as they took us down this road. NOW with the WORST Economic Situation in our LIFETIMES facing us, YOU want to pretend like it''s 1980 again! Can''t you read... wasn''t Fritz clear enough for you? I want our New President doing ONE thing right now and ONE thing ONLY!! I want him focused on OUR economy and figuring out how to get us out of this Hole you and your "Party" got us into. Now either be part of the solution or sit down! Sieg Heil!!