Chicago Workers End Sit-In at Closed Factory
CHICAGO - With cheers and chants that echoed President-elect Barack Obama's campaign of change, jubilant workers agreed to a $1.75 million settlement that ends their six-day occupation of a shuttered Chicago factory that became a symbol of the plight of labor nationwide.
Republic Windows & Doors, union leaders and Bank of America reached the deal Wednesday evening. 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.
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. The workers had argued that Republic violated federal law because employees were not given 60 days' notice. They vowed to stay until they received assurances they would get severance and accrued vacation pay.
Workers carrying sleeping bags left the factory late Wednesday amid cheers of "Yes We Can," a slogan that became part of Obama's campaign.
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.
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 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.
Associated Press writer Rupa Shenoy and videographer Raza Siddiqui contributed to this report.
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30 Comments so far
Show AllThis is what the left counts as a victory in this country. In Argentina the workers would get the factory.
Michael Foley
To PJD. Thank you for sharing about the proposed undercover move to Iowa. I hope the cost of living in Iowa matches the wages, but I know better. God forbid if Iowa's right to work law is repealed. Then Republic/Echo would be forced to move to another third world country like Mexico, or Indonesia. Evidently, Iowans are willing to do work that workers in Illinois don't want to do. That's what they said about why immigrants from third world countries were doing certain jobs here. That was bullshit then and it's bullshit now! The standard of living in These United states lowers every time this kind of corporate behavior is tolerated. Here come another group of workers with sub-living wage and no healthcare; progress in the wrong direction. I would hope there would be a nationwide boycott of the products made at this plant. But at least they're made in Amerika, even though in effect by SCAB labor Also I am pulling my funds from Bank of America, where I have been doing business for decades. Thousands of their employees are soon to hit the bricks, but that should keep the stock dividends bouyed.
One guy on MSNBC said that the day of labor unions is over; it's been tried, but didn't work. A new age will come where everything is a service, a commodity to be bought or sold... This is what the upper classes want for us folks; they want us to come to them begging. God help them, they do not see their own impending peril. Once people reach the breaking point, there will be no putting that genie back into the bottle. It is clear they are not going to readily change their ways, until they are evicted from their ivory towers. It's greed to point of stupidity.
Win a few, lose a few: it seems that Republican Senators were holding out for Forced Labor.
Car bailout falters in US senate
Senior Democrat "terribly disappointed" after $14bn deal fails over union wage cuts.
Heard the same thing. The scrolling caption on CNN said that the UAW refused to cater to republican demands of big wage cuts for workers. Now the ball is in Bush's court to make funds available under the TARP program.
Since when does a "victory" consist of getting what you were owed anyway, as diminished as it was already?
The country is doomed on account of the prevalence of moral idiocy and I'm understating coming attractions...I'd definitely leave if I could afford it. Frankly, those sailing on the Titantic had more options than I believe the American sheeple will have in 2009.
Mark my words.
Right. This is pathetic. Most of these people will be heading for big trouble, losing a job in a recession with many employers who will not hire them BECAUSE they were in a union and demanded their rights. All of these people will not have health care in 60 days unless they fight some mighty big odds and get a new job with benefits.
Where is the punishment for the employer that broke the law by failing to give legal notice? Why are employers not charged with BREACH of CONTRACT for failing to follow the terms they agreed to in the contract? How about BOA charged for conspiracy for not requiring the company to follow legal requirements to the employees and the government as I am sure is in the contract with their loans?
C'mon guys. You are basically right, but I think these workers and their union deserve a big round of applause. I hope it is the opening shot in a wave of resistance to taking whatever management dishes out.
Joe
From a Znet article:
FOR REPUBLIC'S managers, the objective seems to be saving themselves at workers' expense. Confirmation came on Monday that--as workers suspected--Republic is not, in fact, shutting down operations, but planning to move production to Iowa under a new name, "Echo Windows & Doors."
Reports indicate that Echo would be nonunion, pay only $9 an hour, and offer workers limited benefits and no vacation pay for the first three years--a drastic cut compared to the average $14-an-hour wage and health and retirement benefits that Chicago Republic workers had been getting.
According to the Chicago Tribune:
People who apparently have ties to the financially strapped Republic Windows formed a limited liability corporation in Illinois last month, Echo Windows & Doors, that has bought a similar plant in western Iowa.
Sharon Gillman, who shares an address with Republic President and CEO Rich Gillman, is listed as an officer of Echo Windows & Doors LLC, which was incorporated in Illinois on November 18, according to secretary of state records.
Neither she nor Rich Gillman could be reached for comment on Sunday. A secretary who answered the phone at the Iowa plant purchased by Echo said Rich Gillman was not in on Sunday, and that she did not know when he would be in.
An "echowindows.com" Internet domain has been registered, but no content has been placed on the site. The administrative contact on the domain registration is Amy Zimmerman--the same name as the vice president of sales and marketing at Republic...
Echo Windows officials told employees at the former TRACO manufacturing plant in Red Oak, Iowa, on Thursday that the workforce would be doubled from the current 50 employees because they have production orders lined up.
None of this surprises Melvin Maclin, vice president of UE Local 1110, and Ron Bender, a union shop steward.
"I don't think they want to stay here, period," Bender said. Maclin added, "It was never the owner's plan to save the plant. And the bank was aware of it. I don't know that for a fact, but it seemed like the bank was aware of what's going on. They were just running a game."
Still want to call it a "victory"?
---USAn---
They "lost their jobs but got something". You can't squeeze blood from someone pretending to be a turnip. OJ for example.
The biggest thing they won was legitimizing what they did. It could spread like wildfire. I cannot remember the last time a union occupied a plant, let alone got good press for it. It'll pop into workers' minds first thing when they face similar situations, of which there could be plenty.
Why ezzzkly don't you want to see it as a victory?
United Auto Workers, are you paying attention? I didn't think so.
Poet
no blink, gait open, WIN-WIN--Labor & Democracy
http://flickr.com/photos/kbibb/2796303797/
The nation's workers owe these courageous men and women a huge debt of gratitude. Now all of us workers must build on their action by: occupying places of business when these types of closings happen (yes, we do have collective power when we use it like this), becoming politically active and demanding and working for real change to the power structure in this country that keeps us locked out and remaining active and focused in the face of setbacks (which will happen). We must be the new labor movement if we are to have any reasonable chance to be paid fairly and share in the profits that belong to all of us - not just these so-called titans of industry (a/k/a thieves in suits).
The Baltimore Economic Response Coalition Network recently formed to work on mitigating and changing the injustice of these bailouts as well as local foreclosures. What happened at Republic is the perfect example of executive malfeasance: they created a new partnership months ago, secretly bought another plant where they could get lower cost (non-union) labor force and then kept their loyal employees in the dark and working until it was in their best interests to close the plant, leaving the employees unable to live their lives. No more!!! We need laws that make it illegal to do business in that manner - and jail sentences for all these CEOs and managers who steal our pensions and profits and take what belongs to us for themselves.
We heartily support the Republic workers and we hosted a spirited demonstration yesterday at the downtown Bank of America to show our support. We will continue our work and intend to mobilize more workers here.
The finest tribute we can pay to these courageous Republic workers is to continue working and mobilize in a force not seen in this country since the 30s.
The time of the worker is long overdue and it's up to us to make the future ours.
You want "change" folks? You want action? You want to make a difference? You want your fair share. You want to be taken seriously? You want justice. And you want democracy with all that? Take note: This is exactly how its done.
Big time congrats to these folks.
YES!!!
Several workers told me that they had discussed the recovered factory examples in Argentina, (which, btw, they were already aware of } over the past week, but this possibility was precluded by the fact that some critical equipment necessary for production had already been spirited from the plant before the workers finally occupied it. That equipment removal confirmed what some workers had suspected all along -- the owners were actually moving to dump the Goose Island plant in favor of a non-union plant in another state -- although management denied emphatically denied this. They lied.
UE has set up a foundation to raise the money to reequip nd reopen the plant in the future. Whether this pans out remains to be seen.
"although management denied emphatically denied this. They lied."
Now there's a real surprise!
To those that don't think this was a victory....there are others that have not gotten this settlement when their plant closed down. This is a real victory by any measurement.
This new window of opportunity foundation is great.
As we saw during the Auto loans hearings in congress, the union leader knew more about the real situation than the CEO's...
The unions might be forced to take over the failing businesses as the depression sets in. The Fed will soon be next.
Thanks to the thousands of Commondreams.org readers who stepped up to express their support for the members of UE Local 1110 at Republic Windows, and helped to spread the word about this factory occupation across the world. At one point inside the factory, the workers accquired access to a laptop with internet connection and were able to keep track of the earned media coverage they were getting. By early Monday morning, a Google news search found nearly 1,500 story references - and that was just the beginning. One Facebook group grew from 800 to 2,400 members between noon and midnight Sunday. Labor and grassroots community groups mobilized from North Carolina to San Francisco to launch protests against BoA. Republic workers were amazed and inspired by the messages of solidarity and the real material aid that poured in from across the US.
Your solidarity really did make a difference.
UE News Update #2: Vote is 'Yes' at Republic; Plant Occupation Ends
10 December, 2008
[http://www.ueunion.org/uenewsupdates.html?news=438 ]
CHICAGO
After the conclusion of negotiations Wednesday evening, the membership of Local 1110, more than 200 workers, met in the plant cafeteria to hear and consider the tentative settlement that had been worked out by UE negotiators over the past three days.
The settlement was approved by a unanimous vote.
'Justice - We Did It!'
Following the vote, the UE members, led by Local President Armando Robles, marched out of the plant, chanting “We did it!” in English and Spanish.
Pres. Robles stepped to the microphones outside the front entrance to the plant, where a throng of reporters and cameras had been waiting. He announced the end of the occupation and said that justice had been achieved.
UE Western Region President Carl Rosen then described the negotiations, summarized the settlement agreement, and commented on the significance of the struggle and the achievement.
Pay, Health Care, Vacation Pay
The settlement totals $1.75million. It will provide the workers with:
* eight weeks of pay they are owed under the federal WARN Act;
* provided with two months of continued health coverage, and;
* pay for all accrued and unused vacation.
JPMorgan Chase will provide $400,000 of the settlement, with the balance coming from Bank of America
Third Party Fund
Although the money will be provided as a loan to Republic Windows and Doors, it will go directly into a third-party fund whose sole purpose is to pay the workers what is owed them.
As the Local 1110 leaders characterized the settlement, “We fought to make them pay what they owe us, and we won.”
'Historic Victory'
UE Director of Organization Bob Kingsley spoke on behalf of the National Union, describing the outcome of the occupation as “a victory for workers everywhere,” and as “an historic victory for America’s labor movement.”
Kingsley went on to call the settlement “a win for all working men and women who face uncertainty, unfairness and job loss in a troubled economy.”
'The Window of Opportunity' Foundation
Kingsley then announced the creation of a new foundation, dedicated to reopening the plant. It will be initiated with seed money from the UE national union and the thousands of dollars of donations to the UE Local 1110 Solidarity Fund that have come in from across the country and around the world in just the past five days.
Melvin Maclin of Local 1110 announced the name of the foundation, which was chosen by the workers themselves: the Window of Opportunity Fund. Maclin said that the fund will be open to receive donations from all friends of the Republic workers and supporters of their struggle.
Rosen introduced U.S. Rep. Luis Gutierrez, praising the congressman for his tireless work in behalf of the Republic workers and indispensible role in bringing about the settlement. Gutierrez spoke at some length, and then introduced David Rudis, Illinois State President, Bank of America.
A small victory but one none the less. I am sure most of those workers will burn through those benefits before they find a new job. That is how the class warfare game is played in the US. Unemploy the workers and make sure they never get another job that pays as well and keep repeating the cycle. Soon you have the modern day plight of the Amerikan worker. I have been warning anyone who would listen about the coming economic collapse well over a year ago only to be ridiculed. Now that it is here, there is no gloating, only pain at witnessing the collapse of my country for the benefit of a few elites. The stultification of Amerika was accomplished long ago and now we truly are a mass of ignorant sheep. I hope that the sheep take notice of what organized labor REALLY stands for by this action and sheds the endlessly repeated anti-labor corporate propaganda. Solidarity forever, the union makes us strong!
Know what you mean, Define. My father and his eldest son are Rush-worshiping, Fox News watching reps to the core. Still, they cannot admit that the country over the years has been raped. They, of course, voted McCain-Palin. My father recently lost $50 grand in the stock market, but says don't blame Bush. With that level of denial, it's difficult to visit there sometimes.
The irony is that Americans are dramatically cutting their consumption (especially bad because it's the Christmas shopping season), and manufacturers in China are starting to go out of business, while many others feel the pinch. The masters of profit only cared about short term gain, and didn't care (or didn't see) that it was not sustainable. All they were interested in was making as much as they could as quickly as possible, and let the rest of the fools worry about themselves.
It's finally become clear that the only solution is raise all boats, rather than to drain the ocean.
Solidarity forever, the union makes us strong!
YES!!
I don't want to throw cold water on the success they achieved, but this is the first labor "victory" I've ever heard of where the workers are still losing their jobs. And, this is amidst rumors that Republic intends to re-establish operations in a non-union shop either in a small town somewhere or outside the US.
Why such lowered expectations?
In Argentina, they took the shut down plants over and are successfully running the businesses themselves as worker owned cooperatives.
---USAn---
"I don't want to throw cold water on the success they achieved..."
Amazing, absolutely amazing how progressives can reflexively, as in one well-practiced move, snatch defeat from the jaws of victory.
Do we not understand the symbolism of what these workers have done? Do we not see that THEY are US, albeit, with a lot more courage and will? Do we not realize that this is the kind of action, the ONLY kind of action, that will reverse the current course of class warfare that is being waged on us by the military/industrial/political complex?
We have no other recourse other than direct action - none. Nothing else even remotely works for us - we have only ourselves and each other.
"All Nature's difference keeps all Nature's peace." Alexander Pope
My thoughts also. "OK here's what we owe you, now go away!" is a sad victory. But maybe it's a beginning.
Yes, a sad victory. But look at all the people before this who lost their jobs this way and never got a cent of what they were owed. In that respect, it is a big victory. And I think we'll see a groundswell of workers standing up for their rights now because these brave few dared to do so, and won; as well as seeing how so many around the country stood up for them and did what they could to help them.
Confirmed. The whole thing was a union busting scheme. Republic is moving to a plant in western Iowa under the name "Echo Windows and Doors" They will be using an existing non-union plant with top pay of 9.00 hour pay and few benefits.
This was no "victory".
---USAn---
What's keeping workers from occupying and running the factory?
Because it's just going to be an empty building with no machines.
How about "some third party owns it"? Or, "they have no operating capital", or "where do they get the management infrastructure required to get it? I agree though, they ought to be able to get all that stuff as part of whatever Main Street bailout program gets put into motion.