Making a New New Deal: Sitdown Strike in Chicago

posted by John Nichols on 12/07/2008 @ 10:42am

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Much has been made about the prospect that Barack Obama's presidency might, due to economic necessity and the president-elect's interventionist inclinations, be a reprise of the New Deal era.

But there will be no "new New Deal" if Americans simply look to Obama to lead them out of the domestic quagmire into which Bill Clinton and George Bush led the country with a toxic blend of free-trade absolutism, banking deregulation and disdain for industrial policy. Just as Roosevelt needed mass movements and militancy as an excuse to talk Washington stalwarts into accepting radical shifts in the economic order, so Obama will need to be able to point to some turbulence at the grassroots.

And so he may have it.

After the Bank of America -- a $25-billion recipient of Bailout Czar Hank Paulson's "Wall Street First" largesse -- cut off operating credit to the Republic Windows and Doors company, executives of the firm announced Friday that they were shutting its factory in Chicago.

Instead of going home to a dismal Holiday season like hundreds of thousands of other working Americans who have fallen victim to the corporate "reduction-in-force" frenzy of recent weeks -- which has seen suddenly-secure banks pocket federal dollars rather than loosen up credit -- the Republic workers occupied the factory where many of them had worked for decades.

Members of United Electrical Workers Local 1110, which represents 260 Republic workers, are conducting the contemporary equivalent of the 1930s sit-down strikes that led to the rapid expansion of union recognition nationwide and empowered the Roosevelt administration to enact more equitable labor laws. And, just as in the thirties, they are objecting to policies that put banks ahead of workers; stickers worn by the UE sit-down strikers read: "You got bailed out, we got sold out."

"We're going to stay here until we win justice," says Blanca Funes, 55, of Chicago, who was one of the UE members occupying the Republic factory over the weekend for several hours.

Most of Republic workers are Hispanic and they want answers from the Bank of America and the company.

According to the UE, the workers hope "to force the company and its main creditor to meet their obligations to the workers."

"Their goal is to at least get the compensation that workers are owed; they also seek the resumption of operations at the plant," explains the union. "All 260 members of the local were laid off Friday in a sudden plant closing, brought on by Bank of America cutting off operating credit to the company. The bank even refused to authorize the release of money to Republic needed to pay workers their earned vacation pay, and compensation they are owed under the federal WARN Act because they were not given the legally-required notice that the plant was about to close."

UE is an independent union that is not affiliated with the AFL-CIO, although its roots go back to the militant labor organizing of the 1930s that gave rise to the groundbreaking Congress of Industrial Organizations.

Some of the solidarity of old has been on display in Chicago this weekend, as UE members have been supported by unions that are affiliated with both the AFL-CIO and the Change to Win coalition of major unions.

Recognizing the absurdity of taxpayer-funded bailouts that enrich banks that in turn cut credit for American manufacturers, Richard Berg, president of Chicago's powerful Teamsters Local 743, said. "If this bailout should go to anything, it should go to the workers of this country."

Invoking Chicago's rich record of labor struggle -- from the Haymarket Martyrs in the 19th century to the steel industry organizing of the 1930s -- American Federation of State, County and Municipal Employees Council 31 regional director Larry Spivack hailed its latest expression.

"The history of workers is built on issues like this here today," Spivack told union members at the plant.

Spivack's right.

But it is not just the history of workers that turns on struggles such as this. It is the history of presidents and the United States.

Barack Obama will not be the new FDR, and this coming period will not see a "new New Deal" unless labor is inspired to fight once more to keep workers on the job, plants operating and American manufacturing industries muscular enough to survive in the global market. Then, the proper demands can be made on an Obama administration to back up not just unions but their expanding membership.

If the right history of this time is written, it will be said that the new New Deal began in Chicago -- not just because Obama comes from the city but because workers there chose to stand up by sitting down.

For updates on developments in Chicago, UE website.

Comments (38)

Harry Bridges once said the quickest way to single payer universal health insurance was for the citizens of the United States not to show up to work tomorrow and every tomorrow until they got it. He reckoned it would take about five days. I think he overestimated by two.

Posted by onthehelm at 12/07/2008 @ 10:56am
This is a great idea! I want to see more Union infested companies strike for pay and benefit packages just like General Motors. Why not just nationalize everything and make all workers part of the Government workers union? Nichols will not be happy ever, because even the new "5 year plan" won't pay enough. How about compulsory union membership required for citizenship, ala Heinlein and Starship Troopers? For the Federation I will give my life!

Posted by sntauri at 12/07/2008 @ 11:49am
You can go to the UE website posted above and find ways to both send messages of support and donations.

I think this is a really exciting development, but to succeed, it will need our steadfast solidarity.

Posted by bbarthelme at 12/07/2008 @ 11:55am
It is doomed.

Posted by YourJomamma at 12/07/2008 @ 1:03pm
Finally, there are citizens who recognize that a government which supports the agenda of its political and economic elites will not/cannot solve their problems. It is labor that must democratize and show the way not Barack Obama who has bought into the Chicago-defined neoliberal/supply side economic philosophy. What is even worse is his belief that the American dream is, in fact, an ideal. Go labor, go progressives, get busy, the revolution will not be televised.

Posted by afrothetics at 12/07/2008 @ 2:05pm
Good for them.

We have a lot of "have's" and so many more "have not's"...that does need to be changed, of course there will always be those who are at the very top and that doesn't mean we should have so many more on "barely getting by St" though. Every working person deserves a decent living wage, I don't care what kind of work they do...and I don't believe in these CEO's being given humungous bonus's when the workers below are barely getting by. All those high wages at the top need to be trimmed considerably, if they expect their workers to live on a pittance they should try it and see how the other half live!!!! All this sounds so simplistic, which I know it isn't', but I do hope these extortionate CEO wages etc can be curbed and the average worker get their wages increased.

Posted by Caj at 12/07/2008 @ 2:46pm
I wish the workers of Republic Windows and Doors all strength in their struggle.

Posted by mikecope at 12/07/2008 @ 3:44pm
double whammy, I wonder how many of these workers have BoA credit cards that they won't be able to make payment on...

Posted by adp3d at 12/07/2008 @ 5:29pm
It's clear that the right wing in congress and the senate want to use this economic meltdown as a means to break all unions. If the right had it's way, 95 percent of Americans would work for $5 an hour and CEO's would be even richer. Though it is by no means a sure thing, I hope that strengthened unions is a product of the current troubles. I salute these workers in Chicago. With the strength of labor, I think that a stronger and more vibrant middle class can be created. Without strong labor, clearly a strong middle class is not in the cards.

Posted by erazma at 12/07/2008 @ 5:59pm
I see that Obama mentioned in a speech that he supported these workers. How hard would it be for him to go down the street and tell them in person?

Si, se puede.

Posted by bcazden at 12/07/2008 @ 6:09pm
I hope Obama does go down the street and tell the workers of his support in person. I would like to believe that these courageous people will be an inspiration to others nationally and will produce the pressure on DC necessary for the 2nd New Deal which we obviously need. I have only read about this kind of action in Howard Zinn's work and I'd love to see it now. Si, se puede!

Posted by mimsky at 12/07/2008 @ 8:17pm
Posted by sntauri at 12/07/2008 @ 11:49am

Odd allusion to make. Using the libertarian Heinlein as some example of left-wing "forced unionization"!?!???

BTW, the only advantage to the average Terran Federation citizen in "ST" to joining the Federal Service, was getting to vote. Otherwise, most citizens led peaceful, prosperous lives. RAH's story was about personal responsibility as it relates to "national" responsibility.

Posted by Mask at 12/07/2008 @ 9:46pm
Posted by Mask at 12/07/2008 @ 9:46pm

Man you're gonna make me unignore that fartknocker aren't you?

Posted by yutsano at 12/07/2008 @ 9:54pm
I am heartened by the union's actions. We need more of this.

Posted by jonnirae at 12/07/2008 @ 10:47pm
Sorry Nichols, this story has nothing to do with the financial bailout. BoA is not responsible for the financial mess that Republic Windows found itself in. More than likely, the company didn't pay their credit bill(s) on time. That's usually the main reason a bank will cut you off.

Posted by ACook at 12/07/2008 @ 11:23pm
Dear ACook,

So it was 'fine' for BOA to invest in or create fraudulent 'financial products,' get near bankruptcy, and for Congress to bail them out? But no consideration given to a company like Republic?

To quote "House," 'you're a moron.'

Posted by ActualWorker at 12/07/2008 @ 11:51pm
So it was 'fine' for BOA to invest in or create fraudulent 'financial products,' get near bankruptcy, and for Congress to bail them out? But no consideration given to a company like Republic?

Posted by ActualWorker at 12/07/2008 @ 11:51pm

First off, BoA was never in debt nor did it borrow money from the federal govt, up until now. There were no contractural agreements for lines of credit in place with the feds. Also, BoA was never near bankruptcy. Their mortagage financial portfolio was in much better shape than AIG and Merrill Lynch's were. This money BoA is borrowing is going to cover the cost of cleaning up the mess CountryWide did before BoA acquire them. I've had BoA as my bank for years and you have to have an excellent credit score in order for them to extend a line of credit to you. Miss a payment without telling them your financial situation and they will close your account and will not open it back up.

It's unfortunate Republic Windows lost their market share after the housing industry tumbled. However, it was the company's resposibility to tell BoA at the first signs of financial trouble that they needed to re-neogiate their credit terms. Seems they didn't do that.

Posted by ACook at 12/08/2008 @ 12:24am
Hispanic? Did I really just read that?

Posted by baklita at 12/08/2008 @ 01:49am
According to the UE, the workers hope "to force the company and its main creditor to meet their obligations to the workers."

The company's creditors have zero obligation to the company's workers. The company's creditors have a fiduciary obligation to it's own investors.

The reason BoA got the bailout (full disclosure, I live in Charlotte, headquarters for BoA) is because a number of their assets had depreciated in value, making their surplus smaller than would be prudent. So they got a loan that shored up their balance sheet.

Why does a bank need surplus? In case some of the entities that they extend credit to go bankrupt, like Republic.

BoA is almost certainly going to have to write off bad loans that went to pay the workers' salaries in the past. But simply because workers' demand it, BoA should write more bad loans?

It's basic economics people. It's business, not charity for the popular kids the media highlight today. Sit there for 26 weeks until your unemployment runs out for all I care, but don't expect to get paid out of BoA's charity account.

Posted by Darin_the_Big_Fat_Troll at 12/08/2008 @ 09:28am
To be clear, I'm not saying the worker's don't deserve what they earned. It's just unfortunate that the entity that owes them the money is bankrupt. If it makes you feel any better, there is a pecking order in bankruptcy court and that order means

the emplyees get their money before BoA get's it's money.

BoA get's its money before Republic bond holders get their money.

Republic bond kolders get their money before Republic stock holders get their money.

Posted by Darin_the_Big_Fat_Troll at 12/08/2008 @ 09:39am
"This is just political spin by a union looking for attention. It has no meaning in this specific instance.

It's unfortunate for these workers, but that is the fact."

Posted by lvliberty1 at 12/08/2008 @ 02:33am

This is right up there with your most ignorant of posts, LL. What choice do these employees have other than to demand the wages they are owed? Paulson and Co. opened the door and even removed tax penalties for mergers so the "too big to fail" giant banks could get even bigger and sit pretty with tax-payer funded reserves. This was supposed to open up credit and lending to keep businesses like Republic open while they restructure to adjust for the housing and credit crash. I think the union has a legitimate beef here and I stand with them in solidarity.

The right-leanings of the posts related to this story are disappointing to say the least. There is an attempt in play by the corporatist/financial service sector zealots, it would seem, to use the shock of the financial crisis to roll back the gains of centuries of worker struggles. The workers are not the problem - remember these are human beings with families and living costs who for most part have no direct influence on the decision making of their management. They are not the gamblers in the government funded casino known as Wall Street and yet it could be (and seems it will be if this trend continues) they who lose their shirts.

Posted by HAL9000 at 12/08/2008 @ 11:36am
This was supposed to open up credit and lending to keep businesses like Republic open while they restructure to adjust for the housing and credit crash.

Posted by HAL9000 at 12/08/2008 @ 11:36am

No HAL9000, that's not how it works.

Posted by ACook at 12/08/2008 @ 11:56am
First of all it's not Bank of America that owes the workers money- it's their employer.

Second, Bank of America is under no obligation to loan one dime to a company that is a bad credit risk. Any of you planning on renovating your home or building a new one in this economy? Didn't think so.

Making bad loans to inviable credit risks is exactly the wrong thing to do. Forcing a bank to do so would be criminal.

Posted by NoPCZone at 12/08/2008 @ 11:57am
Posted by lvliberty1 at 12/08/2008 @ 11:51am

Your ignorance is due to thinking that this sit-in is demanding government assistance. They're demanding the money they are owed for their labor.

Speaking of the law (from the dept. of labor)...

The Worker Adjustment and Retraining Notification Act (WARN) was enacted on August 4, 1988 and became effective on February 4, 1989.

General Provisions

WARN offers protection to workers, their families and communities by requiring employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs. This notice must be provided to either affected workers or their representatives (e.g., a labor union); to the State dislocated worker unit; and to the appropriate unit of local government.

Employer Coverage

In general, employers are covered by WARN if they have 100 or more employees, not counting employees who have worked less than 6 months in the last 12 months and not counting employees who work an average of less than 20 hours a week. Private, for-profit employers and private, nonprofit employers are covered, as are public and quasi-public entities which operate in a commercial context and are separately organized from the regular government. Regular Federal, State, and local government entities which provide public services are not covered.

Employee Coverage

Employees entitled to notice under WARN include hourly and salaried workers, as well as managerial and supervisory employees. Business partners are not entitled to notice.

Posted by HAL9000 at 12/08/2008 @ 12:26pm
"No HAL9000, that's not how it works."

Posted by ACook at 12/08/2008 @ 11:56am

Thanks for this insightful and informative post. The information you've provided will help shape my thinking on this subject for years to come and you've cleared up any foggy leftist thoughts that may have entered my head.

Posted by HAL9000 at 12/08/2008 @ 12:34pm
Posted by NoPCZone at 12/08/2008 @ 11:57am

You should rewrite the last few lines as follows:

"Making bad loans to inviable credit risks is exactly the wrong thing to do. Forcing a bank to do so would be criminal, however, we, the banks, will do this anyway because in our experience we can make a fortune off of late fee penalties, insurance rate hikes, and credit default swaps and since we've fought for years to remove any regulation of this activity, we'll get away with it and even get the tax-payers to pay for any losses incurred due to our fraudulent behavior."

Posted by HAL9000 at 12/08/2008 @ 12:40pm
This reminds me of Argentina, where there was a similar economic collapse several years ago. In Argentina workers sat in, resumed production, and went into business for themselves. Years later, hundreds of these worker-run factories are succeeding. Their story is told in the award-winning film ARGENTINA: HOPE IN HARD TIMES (Bullfrog Films 2005) and the sequel ARGENTINA:TURNING AROUND (Bullfrog Films 2008). ARGENTINA: TURNING AROUND is also part of the 2008 Media That Matters on-line film festival.

Posted by MarkDworkin at 12/08/2008 @ 2:40pm
Ok, so all bad companies should go down. No bailout. Well the banks are just that, bad companies that are dead. No bailout! No 700 billion of fraudulent fractional reserve money!!! All banks in America are insolvent. They dont have your money. It does not exist! Wake up America! You are being screwed!

Posted by haideh at 12/08/2008 @ 3:22pm
This is right up there with your most ignorant of posts, LL. What choice do these employees have other than to demand the wages they are owed?

Posted by HAL9000 at 12/08/2008 @ 11:36am

The question isn't what (demand) the question is from whom? Republic owes the workers the money, not BoA. The federal government extended relief to BoA so that they could continue to make prudent loans. Earmarking some loans at charity write-off for some workers that The Nation finds particularly deserving wasn't the instruction that came with the money.

BoA has nothing to do with it.

You might as well find out who owns the mortgage on Republic's production facility and demand that that bank waive their demand for payment.

I'm sure Republic owes the federal government money for the withholding taxes on the workers checks. Why don't you demand that Uncle Sam forgive those amounts?

Republic has supliers who provided Republic with glass, wood, and vinyl. Why don't you demand that these suppliers give Republic a bunch of free material so that Republic can continue to treat it's workers like charity cases that The Nation thinks they are?

Posted by Darin_the_Big_Fat_Troll at 12/08/2008 @ 4:50pm
Hell, find out who picks up Republic's garbage and demand that this company give Republic $1 million dollars just for shits and giggles.

Posted by Darin_the_Big_Fat_Troll at 12/08/2008 @ 4:51pm
http://online.wsj.com/article/SB122875865663288467.html

Louisianans Clean House

"Indicted U.S. Rep. William Jefferson suffered what may be the final blow of his storied political career in the most improbable way Saturday," reports the Times-Picaynue of New Orleans. "An untested Republican opponent took advantage of Louisiana's new federal voting rules--and an election delay caused by Hurricane Gustav--to unseat the nine-term Democrat."

The winner, Anh "Joseph" Cao, will be the first Vietnamese-American in Congress, adding to the Pelican State's reputation for ethnic political pioneers. Last year Louisiana elected the nation's first Indian-American governor, Bobby Jindal. **********************************************************

If I do a little John Nichols math here...

Let's see one pickup in the month after the election so by the 2010 election (24 months from now) there will be an additional 24 Republicans in the House and 24 fewer Democrats. And by the time Obama runs for re-election there'll be 48 more republicans in the house and 48 fewer Dems. By then, Republicans will have regained control of the House.

Posted by Darin_the_Big_Fat_Troll at 12/08/2008 @ 5:48pm
I've got to run but I've got three thoughts. The first is a Dilbert cartoon. ***************************************** In panel 1, Tina, the brittle tech writer says, "I don't understand why engineers get paid twice as much as tech writers." ***************************************** In the second panel Dilbert replies, "Well, if you were capable of understanding that sort of thing, you'd be an engineer in the first place." ***************************************** In the third panel Tina says, "Well that took an ugly turn." to which Dilbert replies, "There's no reason to bring up your physical shortcoming too."

Posted by Darin_the_Big_Fat_Troll at 12/09/2008 @ 08:02am
Long story short, what the union is trying to do is properly characterized as extortion.

The workers are owed money by a company that is broke and doesn't have any money. So the union picks some random (deep pocketed) substitute company and demands money from it.

The have absolutely no legal right to the substitute companies funds, but they know that the MSM will see them as the underdog and will give them millions of dollars worth of free press, especially if Pres elect Obama mentions them as well.

So the union takes this million dollars worth of free publicity and threaten's BoA with it. If BoA doesn't hand over the cash, the union will do everything it can to destroy BoA with the millions of dollars of free publicity Obama's mention has gotten them.

I suspect a non-union shop would have used the millions of dollars of free publicity to try to generate new sales so that Republic could continue operating as a going concern. It's telling that the union's first thought is of extortion.

Posted by Darin_the_Big_Fat_Troll at 12/09/2008 @ 08:08am
"Let's see one pickup in the month after the election so by the 2010 election (24 months from now) there will be an additional 24 Republicans in the House and 24 fewer Democrats. And by the time Obama runs for re-election there'll be 48 more republicans in the house and 48 fewer Dems. By then, Republicans will have regained control of the House."--------Posted by Darin_the_Big_Fat_Troll at 12/08/2008 @ 5:48pm

Yep, that's a keeper. Thanks DTT.

Posted by Mask at 12/09/2008 @ 09:13am
BTW, in case anybody forgot Darin (formerly MARYBRETBRAD) and his prognostication skills--

"Let's not. I'd bet turnout will be lower than '04. Liberals had a burning hot hatred of Bush, but Not McCain. Obama's going to win so turn out the vote efforts are going to struggle.

I'd guess Obama will get about 58 million votes and McCain will probably get 54 million.

Mask, Please keep this and repost it a week from now with the final results."---Posted by Darin_the_Troll at 10/29/2008 @ 08:08am

Numbers Game: How to Read the Polls Now posted by John Nichols on 10/27/2008 @ 2:56pm

Posted by Mask at 12/09/2008 @ 09:16am
I whole heartly agree with Darin, however, it is too obvious and practical to be fully understood here.

Posted by YourJomamma at 12/09/2008 @ 09:23am
Once again, Darin is 95% correct. Yet, still missing the elephant in the room.

Let's try this analogy, Darin;

You and I are neighbors. I lose my job and tomorrow they'll shut my power off. Your problem? Absolutely not. Something for me to handle, completely unrelated to you.

Vs.;

You and I are neighbors. Last month, you lost your job and the whole neighborhood gave generously to you, giving you more than a year of your old salary. This month I lose my job and tomorrow they'll shut my power off. I ask you to help and you tell me it's not your problem.

What do you think the rest of our neighbors, who are all tapped out from helping you, think of that.

Reverse those roles and tell me you wouldn't tell all the neighbors what a prick I am.

Is it, technically, your problem now? No. But, it does show that you weren't worth helping to start with.

Neither was BOA, according to your standards.

You seem to forget (a whole week ago) that most of us thought BOA was unworthy and should fail, like any other mismanaged business.

Suddenly, now that they are flush with public cash, at the behest of those who said the economy would collapse w/o cash to lend, they refuse to lend and just buy competitors to make themselves WAY to big to fail.

Bottom line is, if you persist in being 'correct' in your assessment of Republic's problems, then you were 'incorrect' in you insistence that we bail out the banks (i/e/ FAILED BUSINESSES!!!)

Posted by Malcontent at 12/09/2008 @ 1:12pm
onthehelm wrote: "Harry Bridges once said the quickest way to single payer universal health insurance was for the citizens of the United States not to show up to work tomorrow and every tomorrow until they got it. He reckoned it would take about five days. I think he overestimated by two."--Posted by onthehelm at 12/07/2008 @ 10:56am

Great idea!

But complete fantasy.

We could also pay off our national debt tomorrow if everyone who has at least $100 in a bank account donates half of it to a fund to pay off the debt. (I'm making up the 1/2 number - but it's probably not an underestimate).

All of our political problems can be boiled down to: people with money want to share as little of it as possible with those who have not nearly as much.

Any other questions?

Posted by urmygyro at 12/09/2008 @ 7:39pm