Republic Windows and Doors Workers Take Over Building to Protest Illegal Layoffs, Pay Loss

Carol Bengle Gilbert
Carol Bengle Gilbert, Yahoo! Contributor Network
Dec 6, 2008 "Share your voice on Yahoo! websites. Start Here."
250 former workers at Republic Windows and Doors in Chicago organized a rotating sit-in yesterday upon learning that the factory was to abruptly close. The workers, members of the United Electrical Union, did not receive the Federally mandated 60 days notice of the layoffs or alternative severance pay, and their ability to collect accrued vacation leave is in jeopardy. A Republic Windows and Doors representative told union officials that the closing was necessary because Bank of America abruptly pulled the company's financing, according to AFP. Bank of America was the company's main lender.

According to Associated Press, Chicago police are aware of the sit-in and are monitoring the situation. Republic Windows and Doors, a Chicago presence for 48 years, has pledged not to eject the workers from the building and to attempt to resolve their concerns at a meeting Monday between the union, the company and the bank.

Bank of America, which had been lobbying Congress for a Federal bailout since January 2008, got a Federal bailout throught the Troubled Asset Relief Program (TARP) in recent weeks. In an interview with AFP, union representative Leah Fried expressed outrage that Bank of America abruptly cut Republic Windows and Doors' lifeline after itself receiving relief at the expense of Federal taxpayers.

The abrupt shuttering of Republic Windows and Doors came on the same day that the Labor Department released monthly unemployment statistics showing a whopping 533,000 new unemployment claims in November, making it the worst months for layoffs since 1974. The troubling national economic picture may actually help the laid off workers at Republic Windows and Doors to obtain wages and benefits due them. Already, Congress has signaled a possible reversal of its stance on bailing out the Big 3 automakers due to the startling jobs report. With the attention of lawmakers turning to job preservation, this small company's woes may have hit the spotlight at just the right time. Public anger over bailouts selectively promoting the interests of large corporations may generate national sympathy for this company left behind by its lender after the lender received public funds to save itself from going under.

Among the companies that issued layoff notices in November are J.P. Morgan and Chase, which let go 10% of its investment banking staff, Citigroup, which laid off 53,000 workers, Washington Mutual, which laid off 1,000 employees, Bank of New York Mellon Corp. 1800 workers, Goldman Sachs 3,200 workers, and National City 4000 workers. The national unemployment rate rose .2 percent as a result of November's layoffs.

General Motors announced to Congress this week its intention to lay off 4,600 workers. Even Bank of America, the banker whose financing withdrawal is a major component of Republic Windows and Doors' financial insolvency, announced plans to lay off 7,500 employees during the next two years.

Sources: http://news.yahoo.com/s/ap/20081206/ap_on_re_us/workers_takeover; http://www.google.com/hostednews/afp/article/ALeqM5gG3QaVSdQ7jir7-Iocn1anOjRB3Q; http://money.cnn.com/2008/12/05/news/economy/Kashkari.ap/index.htm; http://www.washingtonpost.com/wp-dyn/content/article/2008/12/05/AR2008120501029.html?hpid=topnews; http://www.thedeal.com/dealscape/2008/11/layoffs.php.

Published by Carol Bengle Gilbert - Featured Contributor in Travel and Lifestyle

2010 Yahoo! Outstanding Contributor of the Year, Carol has consistently been designated a Top 100 Yahoo! Contributor Network writer. She received a 2008 People's Media Award for "Best Article." Web writing...   View profile

19 Comments

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  • Anthony L. 12/9/2008

    First of all since the absolute crash in the construction industry no one needs the amount of window and door products we did 3-6years ago.
    Any labor agreements however twisted that were entered into by both parties should be honored. Criticizing mgmt w/o in depth knowledge is a bad paractice. Construction related companies and vendors were used to being in the black for the past two decades suddenly had the rug pulled out from under them. How much cash on hand should a company rally have? This recession has been going on for nearly two years for residential construction. Now everyone is feeling he pinch. It will be at least another year before the industry stabilizes enough to see any substantial "new permitting" and probably up to another two before companies start to hire any number of folks back. This is an instance where I hope I'm wrong, you may ask what makes me a credible source...Up until early 2006 I was an operations level leader with a large regional [illinois] build

  • Pam Gaulin 12/9/2008

    Super coverage!

  • Charlotte Kuchinsky 12/8/2008

    Great reporting on this one, my friend.

  • frank hughes 12/8/2008

    We don't know all the facts yet, but company officials not showing up for a scheduled Friday meeting tells me about all I need to know about Republic's management. The actions of B of A don't surprise me at all, but then this is an outfit that bought Countrywide Home Loans. Times are tough, but I've heard that Republic builds a good product and it appears that their workforce is determined and hard-working. I'll bet there are several good leaders within their rank and file. The truth is that Republic has a much brighter outlook than many firms that are receiving bailouts, so what gives? These workers don't want severance and vacation pay - they want their jobs. It would appear that for a relatively modest sum (compared to $25 billion being used by B of A for God knows what) we could save 300 families from a very Un-Merry Christmas and Un-Happy New Year. Good luck to all!

  • Carol Bengle Gilbert 12/8/2008

    Communism to expect a company to comply with Federal law when shutting down? Not close. If they shut down without 60 days notice, they need to pay severance. They didn't. As far as BOA goes, the entire bailout scenario was premised on the concept that banks would be bailed out so that they could loan bailout funds to businesses and individuals but our congressional reps and SecTreas unfortunately failed to include mandatory loan requirements in the bailout agreements. The moral imperative is still there- they took public funds for a purpose and they should live up to their obligation by making loans to companies and individuals that need them (whether this specific company or not).

  • WHY THE MADNESS 12/8/2008

    HELLO IF THE COMPANY SHUTS DOWN, IT SHOULD SHUT DOWN, YOU DON'T FORCE A BANK TO GIVE CREDIT.... I GUESS WE ARE COMMUNIST'S NOW AS THE GOVERNMENT GETS INVOLVED IN EVERYTHING... GOOD JOB AMERICA

  • Carol Bengle Gilbert 12/8/2008

    It's either or Jcorn- 60 days notice or equivalent severance pay. I think this will be resolved when the parties meet today. The publicity is overwhelmingly in favor of the workers' rights.

  • jcorn 12/8/2008

    I had to come back and comment since i was so tired this weekend to give a thoughtful comment. After reviewing the situation, I wondered about how the law works when they workers are supposed to get 60 days notice of severance but instead get only 3 days? Isn't that the case here? However, there could be special rules during a bankruptcy or bailout situation. A relative lives in Chicago and says the situation has certainly struck a chord with people there - and that is really saying something because there have been a fair number of strikes and sit-ins there in the last year.

  • Kay Whittenhauer 12/8/2008

    Their....... I really need to self-edit before I post.

  • Kay Whittenhauer 12/8/2008

    I saw one of the workers on CNN. He said, "Our job was to build the windows. They're job was to make good business decisions." That says it all.

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