Labor Victory in Chicago

When Barack Obama revealed after the election that he was reading a book on Franklin Roosevelt's first 100 days as president, the "new New Deal" discussion went into overdrive. Progressives dared to believe that Obama's presidency might, due to economic necessity and the president-elect's interventionist inclinations, be a reprise of the last extended period when economic fairness was on the agenda.

But there will be no new New Deal if Americans wait for Obama to lead them out of the domestic quagmire into which Bill Clinton and George W. Bush steered the country with a toxic blend of free-trade absolutism, banking deregulation and disdain for industrial and agricultural planning. Just as a well-inclined but cautious Roosevelt needed the prodding of mass movements and militancy to talk the Washington establishment into accepting radical shifts in the economic order, so Obama will need to be able to point to some turbulence at the grassroots.

Remarkably, even before Obama takes office, a plant-closing struggle in the president-elect's hometown developed into just the sort of fight that will be needed.

More remarkably, Obama responded as FDR might have.

And, perhaps most remarkably of all, the workers have succeeded in forcing not just their employer but one of nation's largest banks to bend to their demands.

After the Bank of America --- a $25 billion recipient of Treasury Secretary Hank Paulson's Wall Street bailout --- refused to extend operating credit to Republic Windows and Doors, a Chicago-based manufacturer, the firm disregarded federal rules that require 60-days notice of a plant closing and announced that its factory on the city's north side would be shuttered December 5. But instead of going home to a dismal holiday season like hundreds of thousands of other newly unemployed workers, Republic's employees occupied the factory.

United Electrical Workers Local 1110 members engaged in the contemporary equivalent of the 1930s sit-down strikes, which led to the rapid expansion of union recognition nationwide and empowered Roosevelt to secure more equitable labor laws. As in the 1930s, the union is objecting not just to a company that may be inclined to shift work out of a unionized plant but to bank policies that encourage those inclinations and to federal policies that reward the bankers and fail the workers; stickers worn by UE protesters tell Bank of America: You Got Bailed Out. We Got Sold Out.

"We're going to stay here until we win justice," said Blanca Funes, 55, as she and other UE members shoveled snow and did routine maintenance at the plant where many of the 250 mostly Latino workers have been employed for decades.

As it happens, justice -- or, at least the small measure that the workers were seeking -- came in less than a week.

The Bank of America agreed on Thursday to provide a $1.35 million loan to enable Republic Windows and Doors to meet the obligations the company has to its employees under the federal law that requires companies to provide 60 days' advance notice of closings or significant layoffs. Along with $400,000 from another creditor, JPMorgan Chase & Co., the payout to workers will be in the range of $1.75 million.

Let's be clear that this is not a today victory.

A total victory would have involved a decision to maintain operations on the plant, so that the union members would have been able to keep working.

But the workers have gotten what was owed them -- roughly $7,000 a piece. And, after so many years of so many stories of workers being denied their due, this result is worthy of note.

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

Even more worthy of note is the way in which it was achieved.

The Chicago protest highlighted A fundamental flaw with Paulson's bailout scheme. Bank of America accepted bailout money that Congress was told would loosen constraints on credit and stimulate the economy. But the bank and other major financial institutions have instead used taxpayer dollars to buy smaller banks, provide executive bonuses and pay shareholder dividends. At the same time, Bank of America refused to extend credit to Republic--a firm that, like many in the home-building industry, is now struggling but could prosper once Obama's stimulus package, with its emphasis on retrofitting public buildings and homes to make them energy efficient, comes through. The company and the union say the bank rejected financial plans to provide workers with vacation and severance pay to which they are legally entitled. The bank says it had no obligation to do so, but after several days of hard negotiations finally agreed to extend the loan.

UE statements throughout the standoff were steadfast and blunt: saying union members sought to "at least get the compensation that workers are owed," but adding that ideally they "seek the resumption of operations at the plant."

Unreasonable demands? Not according to the president-elect, who said two days after the sit-down strike began that "the workers who are asking for their benefits and payments they have earned, I think they are absolutely right." Observed Obama, "What's happening to them is reflective of what's happening across this economy."

That's not a to-the-barricades broadside. Like Roosevelt, Obama is merely offering workers some space in which to organize. What's significant is that UE, an independent union with roots to the militant labor organizing of the 1930s, is seizing the space. And unions affiliated with the AFL-CIO and the Change to Win coalition are supporting a small struggle with a big message. "If this bailout should go to anything, it should go to the workers of this country," argued Richard Berg, president of Chicago's powerful Teamsters Local 743, as he rallied with the Republic workers.

Illinois officials and Chicago City Council members got on board as well, moving to bar state and local agencies from doing business with the Bank of America. Chicago Congresswoman Jan Schakowsky and Congressman Luis Gutierrez are pressuring the Treasury to require banks that accept taxpayer financing to use the money to benefit America's workers. That move is especially significant, as Republic's circumstance is anything but unique.

Nor should UE's response be unique. Obama may sound like a new FDR, but his presidency will not produce that new New Deal unless labor -- in Chicago and nationally -- grabs the opening offered by a rare moment and a potentially rare presidency to fight to keep workers on the job and manufacturing industries functional as the economy stumbles. As UE's Mark Meinster said after the settlement, "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."

When that happens, it will be a lot easier for Obama's administration to renew not just Wall Street but Main Street.

Indeed, when the right history of this time is written, it should be said that the new New Deal began in Chicago -- both because Obama comes from the city and because workers there chose to stand up by sitting down.

Comments (51)

1. A total victory would have involved a decision to maintain operations on the plant, so that the union members would have been able to keep working.

   posted by John Nichols on 12/11/2008 @ 1:28pm

   And just how would Republic Windows manage to stay operational with the housing market in a slump?

   Posted by ACook at 12/11/2008 @ 2:29pm

2. This is a victory for extortion. Yahoo!

   Posted by Darin_the_Big_Fat_Troll at 12/11/2008 @ 2:59pm

3. Posted by lvliberty1 at 12/11/2008 @ 2:34pm

   You are so right. We are gonna have one helluva time over the next 4 years with the mob running the White House.

   Quite frankly if I were BoA, I would have told IL (and the mob) to shove it and leave.

   Posted by ACook at 12/11/2008 @ 3:00pm

4. Extortion and threats are celbrated. It makes me proud to be an American

   Posted by Darin_the_Big_Fat_Troll at 12/11/2008 @ 3:01pm

5. My son's friend broke into our home and stole our TV, then sold it and used the money on drugs. Since I couldn't get my TV back, it seemed kind of pointless to go through the trouble of cooperating with the police to prosecute him.

   So I just stole a TV from Best Buy.

   YAY ME! Everybody cheer me for sticking it to the man.

   Posted by Darin_the_Big_Fat_Troll at 12/11/2008 @ 3:12pm

6. Posted by Darin_the_Big_Fat_Troll at 12/11/2008 @ 2:59pm

   Just like the good 'ol days when Capone was running things.

   Ah yes!! Chi-town, mob capital of the world.

   Posted by ACook at 12/11/2008 @ 3:20pm

7. Somebody should have stuck a football in Mr. Nichols' hands when he was a kid. Jeez.

   Posted by jimmylove at 12/11/2008 @ 3:29pm

8. Somebody should have stuck a football in Mr. Nichols' hands when he was a kid. Jeez.

   Posted by jimmylove at 12/11/2008 @ 3:29pm

   Hehehe, that was funny...

   Posted by ACook at 12/11/2008 @ 4:00pm

9. Ya'll want to blame the employees for this mess, but it was the company that broke the law and violated contracts. BoA told the company to NOT honor those agreements.

   I have yet to read anything about the company not being able to reopen if the economy picks up, nor have I read anything about the company not having outstanding revenue due to them from product already sold. That may be enough to repay the loan. Also, nobody ever answered my question about management, did they take a pay cut? Did they get vacation and severance pay?

   why isn't credit available after the bailout? Many companies say that they just need the normal revolving line of credit to stay open, but are unable to get it. What happened to the money? Is it as Mr.Nichols wrote, are the credit agencies paying out bonuses and dividends first? What happened to the "risk" that they claim is the reason they are allowed to take home multi-million dollar paychecks?

   Posted by crabwalk at 12/11/2008 @ 4:10pm

10. Gee, want to know what is even funnier COOK?

    reading a bunch of self described Christians as they recommend setting people out on the streets before Christmas without money they are owed by law.

    A real hoot, no?

    then comes this story that puts the debacle in perspective. It seems that the owner of the company does have enough money to buy another window company.

    "Chicago-based Republic Windows & Doors closed its doors last Friday, setting off an unlikely whirlwind when factory workers staged a sit-in that attracted the attention of political leaders and the national media.

    ****----On the same day, Traco reported the sale of its residential window unit based in Red Oak, Iowa, to Echo Windows LLC, a new company that was later revealed to be formed by the family of Rich Gillman, who is also chairman, president and CEO and part owner of Republic.-----****

    When Republic initially shut down operations, officials attributed the closing to deteriorating demand due to the weak housing market and a Bank of America decision not to extend its line credit. Initial statements by the company made no reference to Echo Windows and its acquisition of the Traco manufacturing plant in Iowa. "- windowand doornews.com

    so yes, by all means. Let us toss the employees out on the street 2 weeks before xmas so that the owner can move his operation to Iowa . Great morals ya'll want to pass on to your kids.

    Posted by crabwalk at 12/11/2008 @ 4:19pm

11. "December 5, 2009

    Traco is selling its residential vinyl replacement division to Echo Windows LLC, which is described as a strategic buyer with experience in the residential marketplace. As part of the agreement, Echo has purchased Traco's Red Oak, Iowa, manufacturing plant, where it will produce Sienna Series vinyl windows and Power Two composite vinyl/aluminum windows."

    Where did the money come from to finance this deal?

    This company was incorporated on Nov 18. If Mr. Gillman had the money to buy a new plant, while KNOWING that he was going to close his Republic operation.... it stinks to high heaven.

    Looks like JP Morgan owns 40% of Republic, via their acquisition of Chase. So, THEY should pony up!

    Yes, the plot thickens and it is not as black and white as the cons would have us believe. Or as they like to call themselves..."the moral majority". Nice morals.

    Posted by crabwalk at 12/11/2008 @ 4:30pm

12. Boiled down, BofA and JP Morgan Chase decided to cut their PR loss and curry a bit of favor w/Chicago pols, including Magic.....though they "had no obligation to do so"!-happycoward

    From what I can tell, JP Morgan DID have a legal obligation to pay the employees, via their 40% stake in the company.

    Posted by crabwalk at 12/11/2008 @ 4:37pm

13. Is there some reason (other than an aversion to irony) that Rod Blagojevich's role in labor achieving this victory was overlooked?

    http://therehearsalstudio.blogspot.com/2008/12/making-money-talk.html

    Posted by smoliar at 12/11/2008 @ 5:14pm

14. Posted by crabwalk at 12/11/2008 @ 4:19pm

    Look Crabbie, no one is cheering the closing of Republic Windows nor are we celebrating the idea that 240 employees got the boot from a modern day scrooge either. Now, is the CEO a dirty rotten scoundrel? You betcha!

    And as far as hearing anything about the company finances, well, you can forget it. Unless criminal charges have been filed, Mr. Gillman will walk away scott free.

    Posted by ACook at 12/11/2008 @ 5:48pm

15. Just wanted to say thanks to CRABWALK for the articles and the defense of these workers - for a second I thought I was on an objectivist club forum.

    Posted by HAL9000 at 12/11/2008 @ 6:39pm

16. If Abolitiionists had the imagination of today's Left, slavery would have endured for another 100 years. Although I am happy that the workers will receive the money they deserve, I am upset that the Left missed an opportunity to demand policies that provide relief to distressed individuals.

    Progressives refused to move beyond a simple narrative which says: Bank/Bailout = Evil; Worker/Factory = Good. While the Left bashed Bank of America, Republic Windows and Doors quietly completed a scheme in which it closed its Chicago factory and bought a second company in Iowa and consolidated operations with that outfit. This is yet another example of a company discarding employees for cheaper labor.

    Because the Left was paralyzed by the traditional narrative, it failed to uncover the scheme. Most importantly, due to the Left's activism, the company has accomplished its scheme without any bad press or legal liability (because the banks will pay the workers). That's a pathetic outcome - not a victory.

    Interestingly, the company itself received nearly $10 million in development subsidies which it used to expand its facility. The company has used this money, and now it has received $2 million because the Left beat up the big bad banks. Congratulations!

    Finally, the company's owners bought a condo last year for $2.6 million. The price of their apartment exceeds the money owed to 200 workers for 2-months wages and benefits.

    http://dissentingjustice.blogspot.com

    Posted by damitajo1 at 12/11/2008 @ 6:47pm

17. It beggars the imagination that anyone would call what these workers did "extortion." They asked for what was due to them, and they did it in a peaceful way. Period. I would hope that people who want to talk about the "mob" would look to Wall Street and the executives there who are using our money for anything but what we intended. Those guys make the Godfather movie characters (the mob) look like slackers. Or if you mean "mob" as in the screaming rabble, then you have the Republic workers all wrong. Just because Wall Street execs are not screaming, it doesn't mean they are not the lawless rabble.

    Kudos to the peaceful and decent people who sat in at republic. You have done every one of us a favor.

    Posted by LynnMontana at 12/11/2008 @ 7:54pm

18. Posted by LynnMontana at 12/11/2008 @ 7:54pm

    Lynn, what good is it giving the workers "kudos" when they're out of job? The meager funds they agreed to will not help them.

    From my POV, the workers begged for the wrong thing. They should have gotten their collective heads together and bought the business outright and ran it for themselves. Instead, they'll be wondering where their next paycheck will come from.

    Posted by ACook at 12/11/2008 @ 8:17pm

19. "I have yet to read anything about the company not being able to reopen if the economy picks up, nor have I read anything about the company not having outstanding revenue due to them from product already sold. That may be enough to repay the loan. Also, nobody ever answered my question about management, did they take a pay cut? Did they get vacation and severance pay? '

    It doesn't matter...the company is broke and will not re open...alll that happened was the BoA made another bad loan to a group that will never pay it back...

    Victory for those demanding money from someone else...

    Loss for those who will not get it repaid back, loss for anyone who has a 4th grade economic sense and above..a loss for reality...and a PR move for a union that extorted money...the one thing unions do best...and if we are all this "lucky"..we, too, can be unionised.

    Obamanomics?(see Union bailout for no work at GM coming to you soon)..another "victory" for ..who?

    Many more "victories" like this and we will be defeated.

    we are doomed...

    Greetings from China...they are closing places like above...

    Posted by YourJomamma at 12/11/2008 @ 8:21pm

20. What was extorted?

    JOMAMMA, what is the productivity of a UAW plant vs non-UAW?

    "Victory for those demanding money from someone else..."

    They worked for the money. It sure looks like the owner took the employees money and used it to move the company.

    "t doesn't matter...the company is broke and will not re open...alll that happened was the BoA made another bad loan to a group that will never pay it back..."

    It sure looks like the owner took the employees money and a grant from John Maasch's taxes and used it to move the company.

    Posted by crabwalk at 12/11/2008 @ 9:06pm

21. "My son's friend broke into our home and stole our TV, then sold it and used the money on drugs. Since I couldn't get my TV back, it seemed kind of pointless to go through the trouble of cooperating with the police to prosecute him. So I just stole a TV from Best Buy."

    Not me. I organized the workers at the company and told the management "Fuck you, we can build televisions without your guidance."

    Hell, it is working in Argentina. The rich are pissed off, but who gives a fuck?

    Posted by onthehelm at 12/11/2008 @ 9:35pm

22. Give me a break! How can anyone equate the protest for wages and benefits the employees earned with extortion. If Bank of America didn't take $25 billion in taxpayer money, there wouldn't be any issue at all.

    Some workers protest because they are getting shafted out of their earned vacation severance and now they are the mob. Nice christian talk from a pack of hypocrites.

    These people are being hurt. Some of them have families to provide for.

    Posted by koroviev at 12/11/2008 @ 11:42pm

23. The workers should have demanded that the unions slush fund for the 100's of millions of dollars that went to the Dem party, this year for Obam return some of those dollars to help the workers buy and run the window company instead of getting a 1 time give away from the bank as they write it off the bottom line in April taxes.

    Posted by YourJomamma at 12/12/2008 @ 01:27am

24. Crab,

    I agree...the issue is with the owners or managers who ran the compnay..not the bankers in this case. And I have no love for bankers.

    but it was the B of A who was EXSTORTED in effect to pay the bill....

    The workers went after the wrong people, but, that was where they new they could maybe get a short term PR bump...and no long term return..typical union and Uber lefty philosophy....and next week?

    ...the workers are home watching TV.

    Instead of taking a turkey from Ol' Jesse(seems appropiate he hands out turkeys) the workers should have demanded the union INVEST in the window company in order to keep the jobs...put something of themselves into the window company other than time...and perhaps the company could survive or even thrive with the unions showing the world that they can manage a company better...

    but...style over substance wins again..and no real results or "change". takes place...

    and just another wasted check never to be paid back to those who put up the cash.

    and no solution. The current end result was expected and predictable by all who struggle to run efficient and successful business...with all the govt and union impediments to success placed in the way and labled "fair" along the route.

    Posted by YourJomamma at 12/12/2008 @ 01:37am

25. Still... What issue would there be if Bank of America didn't take $25 billion in taxpayer money?

    Bank of America had no obligation to extend any loans to pay these workers. I guess they paid them to keep their mouths shut. But, why would BoA care....

    It's the deluge of cash, $350 billion from the bailout, that has yet to be released. I'm sure the pressure to cave in and extend the loan had more to do with losing access to this money.

    Posted by koroviev at 12/12/2008 @ 02:02am

26. Which is it cons, there is no work to be done so the company has to close...or... the workers should have bought the company and done the work?

    you guys are so full of shit it is unbelievable that you can still move around. Sitting here reading your defense of violation of US law makes me think back to your defense of those that outed a CIA agent during war, while you accuse "the left" of being traitors. ideology run amok.

    Someone loaned Mr. G the money to buy the new factory. Was it BoA? If they did that then they should pay off the workers from Republic FIRST. Obviously some lender thinks the owner is a reasonable risk.

    J- how do you know they are all home watching TV? How do you know that they aren't out looking for new work? Oh, that's right, you are omniscient. This great skill of yours predicted a Marxist Obama regime too, hows that prediction working out? About the same as your Iraq predictions I bet.

    Posted by crabwalk at 12/12/2008 @ 09:08am

27. Let's examine some of the cons theories

    Union members are lazy:

    "The annual ranking of auto plant productivity by Harbour Consulting found GM's Oshawa No. 2 plant is the most productive in the North American auto industry.

    he Ontario plant, which makes the Pontiac Grand Prix and Buick LaCrosse and Allure, took only 15.68 hours on average to build a vehicle in 2006. That's an improvement from the 16.08 hours it took in 2005, and is better than the 16.34 hours it takes to build a vehicle at the neighboring Oshawa No. 1 GM assembly line.

    The No. 2 plant was originally slated to close when it's done making 2008 models about this time next year. But GM now plans to keep some production going there for an undetermined amount of time as it modernizes the Oshawa No. 1 plant to give that facility a more flexible assembly line.

    The rankings also showed that GM has the most productive engine plant in the North American industry in Spring Hill, Tenn., and the most productive transmission plant in Toledo, Ohio."-cnnmoney.com

    It must be the unions fault that GM is closing the most productive plant in N. America, right JOMAMA?

    there is misinformation floating around that each worker costs $70/hr. It is not true. But let's assume it is for a moment.

    $70/hr *15.68= $1097 per car in union labor cost from GM. OOOHHH. those damn greedy unions are driving up the price of cars!!!

    the real figure is closer to $48/hr. which is under $800 per car that sells for $20k.

    Entering union workers at GM plants make about $17/hr. How many of you cons live on 34k a year?

    Posted by crabwalk at 12/12/2008 @ 09:20am

28. Crab,

    "Which is it cons, there is no work to be done so the company has to close...or... the workers should have bought the company and done the work?"

    We do not know...and that is the point...

    because the bank pulled the note we conclude that the business is no longer viable and therefore out of business per say..if they were viable the bank would have renewed the note..if the businesss were viable the unions would have demanded a chance to take over the compnay...which they never even brought up..so...we conclude the company is not viable, therfore, they extorted the money from the bank...if the company is viable and the unions didn't notice, then what use is the union for the workers? And if the union did see a viable company and just hit for the money, then again, of what use is the union to the worker?

    Crab, the staying home watching TV is just a euphenism for not working there any more...looking for another job would denote the same thing...which is where I would have been...

    The Marxist regime ? I don't know if the predictions are correct yet...he hasn't assumed power from the dictator, Bush...but my guess is you will see more of the same as in the union fiascos and more govt control over previously private realms...and therefore, the Marxist thing might well work out as predicted. I just finished dinner with the capitalisyic Chinese tonight...very interesting evening.

    You are too sensitive and not able to read between the lines of the threads here...you are too literal..makes for a narrow field of vision and conclusion jumping...

    all you left for conclusion with your post is the union should get the cash..and the bank must pay becasue tthey got a loan from govt, presumedly for making poor decisions and you want them to do so again.

    Posted by YourJomamma at 12/12/2008 @ 09:22am

29. headline this am:

    "Global Markets Sink on Bailout News"

    looks like the free marketers think that not loaning the Little 3 money is going to be bad for bidness.

    --- OK, the CAW is the most productive in N. America. How do US banking institutions hold up in the world? They make the laws by donating more to pols than any other group, they have less regulation here than in Europe and japan.

    "By far, Japanese banks head the list of the world's top revenue producing commercial banks ranked in terms of the productivity of their employees. Eight of the foreign banking institutions with the lowest labor input requirements per million dollars in annual revenues are Japanese. Table 1 below presents the top ten foreign banks ranked based on the labor productivity criterion.

    In the category of non-Japanese foreign commercial banks, German institutions outperform their counterparts in this classification. Five of the top ten firms in this ranking are based in Germany. Table 2 shows the ten foreign non-Japanese commercial banks with the highest labor productivity rates.

    Only one U.S. bank (J.P. Morgan & Co., Inc.) exhibits labor productivity figures that would rank it among top in the world. Table 3 shows the ten commercial banks in the United States with the highest labor efficiency rates (lowest employees per million dollars in revenues).

    Hypothesis I: Labor productivity in U.S. banks is lower than that in foreign banks. That is, the mean number of employees required to generate one million dollars in revenues is higher (at a given statistical level of significance) for U.S. banks than for foreign banks.

    Hypothesis II: Labor productivity in U.S. banks is lower than that in non-Japanese foreign banks. "-business network.com

    Posted by crabwalk at 12/12/2008 @ 09:33am

30. Posted by YourJomamma at 12/12/2008 @ 09:22am | i

    If the owner has the capital to purchase a new window company, and he has a home worth 2.6 million, I would think he has the assets to cover the loan from BoA. What Darin told us about the Banking Bailout was that the govt would actually be purchasing assets that would hold real value. BoA, and JP Morgan already with their 40% stake, should be holding stakes in the guys house and the factory. If he defaults, BoA gets the factory and his house, worth more than the 1.75 million they loaned Gillman.

    the owner must think that the windowdoor business is viable, he BOUGHT ANOTHER COMPANY TO DO IT! What it looks like to me is that he wanted to skate away without paying his LEGAL obligations.

    Posted by crabwalk at 12/12/2008 @ 09:39am

31. Posted by YourJomamma at 12/12/2008 @ 09:22am

    Curious, MAASCH...how's YOUR business?

    Posted by Mask at 12/12/2008 @ 09:41am

32. "CONCLUSION

    Based on the testing of the hypothesis about the differences of the means of the three populations of banks in our study, we conclude that the mean number of employees required by U.S. to produce one million dollars in revenues is statistically higher than that required by both foreign and non-Japanese foreign banks. Therefore, our analysis concurs with the earlier findings (discussed in the review of the literature section) that, based on the labor productivity yardstick, U.S. banks are outperformed by their foreign counterparts."

    So, where is the outrage over the LOW PRODUCTIVITY of those that work in the nationalized US banking industry? I have to imagine that if they belonged to evil unions.....

    Posted by crabwalk at 12/12/2008 @ 09:43am

33. "Shortly after pulling in a cool $10 million in Tax Increment Financing (TIF) dollars to "bolster the local economy," Brach's Candy Co. shuttered its West Side facility in 2003. They were rewarded with an another $880,000 TIF deal for setting up shop in the former Montgomery Ward building last year. In 2005, Wrigley Co. followed Brach's lead, closing down its South Side chewing gum plant after garnering a $15 million TIF subsidy. Almost 1,700 Chicagoans lost their jobs as a result of the company relocations and taxpayers were saddled with the costs.

    As these examples illustrate, Chicago has a sordid history of doling out TIF subsidies to corporations that later squander them. Republic Windows and Doors is the latest example. Owners took $9.6 million in TIF subsidies over roughly the last decade. Then they abruptly decided to close their Chicago factory last week, firing their workforce on three days notice while apparently purchasing an Iowa plant that manufactures similar products."-progressillinois

    Posted by crabwalk at 12/12/2008 @ 09:57am

34. Posted by Mask at 12/12/2008 @ 09:41am

    probably pretty good. He is dealing with these anti-socialists:

    CONSTITUTION OF THE PEOPLE'S REPUBLIC OF CHINA

    "The basic task of the nation in the years to come is to concentrate its effort on socialist modernization. Under the leadership of the Communist Party of China and the guidance of Marxism- Leninism and Mao ZedongThought, the Chinese people of all nationalities will continue to adhere to the people's democratic dictatorship and follow the socialist road, steadily improve socialist institutions, develop socialist democracy, improve the socialist legal system and work hard and self-reliantly to modernize industry, agriculture, national defence and science and technology step by step to turn China into a socialist country with a high level of culture and democracy. The exploiting classes as such have been eliminated in our country. However, class struggle will continue to exist within certain limits for a long time to come. The Chinese people must fight against those forces and elements, both at home and abroad, that are hostile to China's socialist system and try to undermine it.

    Article 19. The state develops socialist educational undertakings and works to raise the scientific and cultural level of the whole nation. The state runs schools of various types, makes primary education compulsory and universal, develops secondary, vocational and higher education and promotes pre-school education. The state develops educational facilities of various types in order to wipe out illiteracy and provide political, cultural, scientific, technical and professional education for workers, peasants, state functionaries and other working people.

    Posted by crabwalk at 12/12/2008 @ 10:09am

35. Since all the repugs who post their poison here are talking extortion it must be the keyword in their marching orders from fascist central.

    According to the Wikipedia defintion of extortion it is: "Extortion, outwresting, or exaction is a criminal offense, which occurs, when a person unlawfully obtains either money, property or services from a person, entity, or institution, through coercion. Refraining from doing harm is sometimes euphemistically called protection. Extortion is commonly practiced by organized crime groups. The actual obtainment of money or property is not required to commit the offense. Making a threat of violence or a lawsuit which refers to a requirement of a payment of money or property to halt future violence or lawsuit is sufficient to commit the offense. Exaction refers not only to extortion or the unlawful demanding and obtaining of something through force,[1] additionally, exact in its formal definition means the infliction of something such as pain and suffering or to make somebody endure something unpleasant.[2]

    In the United States, extortion may also be committed as a federal crime across a computer system, phone, by mail or in using any instrument of "interstate commerce." Extortion requires that the individual sent the message "willingly" and "knowingly" as elements of the crime. The message only has to be sent (but does not have to reach the intended recipient) to commit the crime of extortion."

    Now explain to me how a peacefull request for money that is owed for services rendered can be called "extortion". Unless of course if your mind is addled by ideology?

    Posted by chaoszen at 12/12/2008 @ 11:40am

36. If there was any Extortion involved in the Republic Windows and Doors situation, it seems to me it would have been the other way round. Since there was the the crime of ignoring the laws as related to the WARN Act. And the breach of contract involved in Republics moving their operations to an Iowa non-union shop called Echo Windows.

    Posted by chaoszen at 12/12/2008 @ 12:10pm

37. If anyone in the area wants to protest you can always picket The former TRACO in Red Oak, IA. At 2400 N Broadway St. That company was bought by Republic in November to escape their contract with the UEW.The UEW had the rights according to contract to negotiate any outsourcing and to compensate employees for plant relocation.

    Posted by chaoszen at 12/12/2008 @ 12:33pm

38. Posted by chaoszen at 12/12/2008 @ 12:10pm

    Unfortunately Chaoszen, there's no serious enforcement teeth behind the WARN Act when owners close shop without notice. And quite frankly, the "bank won't extend my credit" rouse worked. Not only did the owner skip out on his employees, he got BoA to take the rap for his financial shenanigans.

    Here are the exceptions that guy used...

    Faltering company: When, before a plant closing, a company is actively seeking capital or business and reasonably, in good faith, believes that advance notice would preclude its ability to obtain such capital or business, and this new capital or business would allow the employer to avoid or postpone the shutdown for a reasonable period;

    Unforeseeable business circumstances: When the closing or mass layoff is caused by business circumstances that were not reasonably foreseeable at the time that the 60-day notice would have been required (i.e. a business circumstance caused by some sudden, dramatic, and unexpected action(s) or condition(s) beyond the employer's control, such as a major order's unexpected cancellation); or

    Natural disaster: When a plant closing or mass layoff is the direct result of a natural disaster such as a flood, an earthquake, a drought, a storm, a tidal wave, or the similar effects of nature. In such cases, notice may be given after the event.

    Posted by ACook at 12/12/2008 @ 12:43pm

39. Posted by ACook at 12/12/2008 @ 12:43pm

    There are always at least three players in any business. The Bank(S) the owners and the employees. There is only one entity involved that always gets screwed. The employees. Which are the lifeblood of the business and the lifeblood of the economy within which those businesses exist.

    So who needs protection? The only protection the employees have is a union. And believe it or not the protection of the workforce is infinitely more important than the inherent protection provided for the other players. Otherwise a healthy economy cannot exist. People must have jobs to earn money in order to pay for goods and services provided by Banks and business owners.

    Otherwise the economy will collapse because there is no money in the hands of the consumer to purchase those goods and services. That is why supply side economics is insane in the long term.

    I don't wish to belabour the obvious.

    Posted by chaoszen at 12/12/2008 @ 1:13pm

40. Posted by ACook at 12/12/2008 @ 12:43pm

    none of those apply to Republic.

    Posted by crabwalk at 12/12/2008 @ 1:33pm

41. union membership has been declining for decades

    and who has this benefited? certainly not the workers.

    Posted by emile duBois at 12/12/2008 @ 1:36pm

42. Posted by lvliberty1 at 12/12/2008 @ 1:26pm

    The reason for the decline in Union membership is not because the country disagrees. Why would the workers disagree with representation? If the "country" you describe are the workers. The reason for the the decline of Unions has been a concerted effort by right wing jackasses starting with Reagan to undermine Unions at all costs.

    Just like the lame duck assholes on the right in the Senate are doing now. They are enemies of Unions and the organizing of same.

    They are Anti-American economic terrorists who are attempting to throw every roadblock possible in the face of a new administration that will have to work all the harder to overcome. These S.O.B's will throw every wrench possible into the working of a fair democracy.

    In order to point to Democratic leadership and say "See they can't make government work!" After they are done doing everything they could to insure government would fail. Assholes.

    Posted by chaoszen at 12/12/2008 @ 1:51pm

43. he BOUGHT ANOTHER COMPANY TO DO IT! What it looks like to me is that he wanted to skate away without paying his LEGAL obligations.

    Posted by crabwalk at 12/12/2008 @ 09:39am

    Another company...yes...a different company...

    No one said the industry might not be viable..just that particular business.

    As far as my business...

    I am in China completing a deal begun 1 and 1/2 years ago to sell TO China AMERICAN made products, designed, built, shipped for EXPORT of products TO...TO China... in return for AMERICAN dollars returning to AMERICA...

    we are doing extremely well these days... Thanks for asking. In bad cycles exporting works wonders.

    And when completed, we will be hiring many, many people with technical back grounds to manufacture more units HERE in the US, as well as provide the service here...and no, neither we, nor the people we hire will need a union...for the conditions we set up eliminate the need...for our people will get a piece of the EVER INCREASING PIE WE ARE MAKING,..and will be paid for what they know, not how long they show up for work,we will be structured to get paid based on productivity..not hours...and the starting pay has nothing to do with an hourly wage.

    So far..I believe, from those we have spoken to, there will be more people than positions, so we can pick the best and brightest.

    My jewelry business, as are all jewelery business thses days is like a turtle on its back in the sun..It is surviving, but not sure for how long. It may or may not make it..I didn't strike my compoany and make demands they could not make..I prepared for a disaster and went looking for another source of income in case of disaster..IE.,I didn't wait for the levees to break..I heard the warnings, saw it coming, and reacted accordingly.

    Posted by YourJomamma at 12/12/2008 @ 5:04pm

44. And...my house is up for sale..I do not think this is a time to own some types of hard assets..especially with a mortgage..I believe it may be better to rent these days..

    and if all goes well..I wouldn't mind renting a small grass hut bar in one of the islands...

    for if If I do well here inj China for the next couple of years, come and visit me..ask for..Edwardo...that will be my new handle..and first drink is on me...

    If things do not go well,.then look for me in some other endeavor, as of yet , unknown,...but you will not find me with a sign wandering the street demanding support form someone elses pocket....even at my age.

    Posted by YourJomamma at 12/12/2008 @ 5:11pm

45. You just don't get it John. That money was owed to those employees. They worked for it, they had a contract for it. They "extorted" nobody, they took nothing that was not theirs. From the looks of this whole deal it sure seems like the guy that was supposed to take the risk for the benefit of rewards took no risk but is reaping the reward, whereas those that took a job with a contract will have their homes at risk now.

    -"Another company...yes...a different company... No one said the industry might not be viable..just that particular business._

    this is absurd. Obviously he has the assets to invest in a new company, he must have the wherewithal to ride out the storm at Republic. One really has to twist to not see that he did this to avoid his legal obligations, hoping he could skate away with taxpayer money and the money he owed people for making his products.

    Posted by crabwalk at 12/12/2008 @ 5:27pm

46. Crab,

    "You just don't get it John. That money was owed to those employees. They worked for it, they had a contract for it. '

    Yes they did have a contract...lets say I contract to you for work..you go bankrupt for whatever reason..your bank has cut you off...so I can go to your bank and say Crab owes me..YOU pay me? Bank will and should laugh ne out of the office...

    "Obviously he has the assets to invest in a new company, he must have the wherewithal to ride out the storm at Republic'

    No not obviously, and whether he has personal assets are irrelevant...if he has finacing for a good investment and not for a bad would make a difference..

    Crab, you are probably a good guy and you opbviously have a heart...but in business it is mostly math, especially when dealing with someone elses money that you have to pay back..I do not think you get it, which in itself is no vice..just inexperience in the real world verses how it should look...

    Posted by YourJomamma at 12/12/2008 @ 6:53pm

47. Crab,

    "You just don't get it John. That money was owed to those employees. They worked for it, they had a contract for it. '

    Yes they did have a contract...lets say I contract to you for work..you go bankrupt for whatever reason..your bank has cut you off...so I can go to your bank and say Crab owes me..YOU pay me? Bank will and should laugh ne out of the office...

    "Obviously he has the assets to invest in a new company, he must have the wherewithal to ride out the storm at Republic'

    No not obviously, and whether he has personal assets are irrelevant...if he has finacing for a good investment and not for a bad would make a difference..

    Crab, you are probably a good guy and you opbviously have a heart...but in business it is mostly math, especially when dealing with someone elses money that you have to pay back..I do not think you get it, which in itself is no vice..just inexperience in the real world verses how it should look...

    Posted by YourJomamma at 12/12/2008 @ 6:53pm

48. to john nichols- loved the story, but incomplete. The tactics used @ Republic were sanctioned by Bank of America. *Ill. sec. of state records show Nov. 18 Echo window & doors was formed. *Sharon Gillman (Republic CEO Rich Gillman's wife?) listed as officer @ newly created Echo. *Dec.4 Rep. announces closing of chicago plant & purchase of window div. of Traco in Iowa. *echowindows.com domain created W/ Amy Zimmerman listed as administrative contact on registration, who is also vice president sales& marketing @ Republic. *echo will pay new workers in Iowa $9 hr as oppossed to the $14> paid to republic workers, few if any benefits & 3 yrs. to obtain ANY type of paid time off. !!! These tactics are being repeated all over our country - some small, some large ie. the auto bridge loan. However,the small stories are going vastly unreported unless workers take a stand,make noise & get media attention. !!! $25 billion in bailout $ to bank of america which enables them to work with companies that are willing to shaft their workers. In this case taking a $14 hr. job and reducing it to $9 hr. When will $9 per hr. be too much?! !!! Yes i am so glad that Republic workers were able to recieve what was legally theirs AND i suppose some would say that at least Republic didn't ship everything overseas. However, we need HIGH exposure to show everyone how big money with the assistance of washington (that $700 billion was SO EASY to get wasn't it?!) are pitting worker against worker on our race to the bottom.

    Posted by madriver at 12/13/2008 @ 09:57am

49. Posted by YourJomamma at 12/12/2008 @ 6:53pm

    Your analysis would be accurate if the family had not moved the operation out of state. But it is obvious that they have or had the money to pay off their legal obligations. Juts read MAD's timeline. If they have to take a loan to pay their legal obligations because they spent it elsewhere, that is their problem. If BoA loses out, we lose out too, but they should have made sure the family didn't spend the money on the new (lower wage) plant before they took care of legal obligations. JP Morgan is responsible for paying the employees as they hold a stake in the company. Boa will get their money back one way or another, even if THEY have to sell the existing plant.

    question; what is going to happen to the machinery and tooling in the Republic Plant? If the family has the cash, or financing, to buy new tooling, then they have the money to pay the workers. If they are taking the tooling with them, then BoA will have assets to seize if needed.

    Posted by crabwalk at 12/13/2008 @ 10:11am

50. "When asked about their own preferences, 35% of Americans say they would like to see labor unions in this country have more influence than they currently have today, while 28% say less influence and 33% say the same amount of influence."

    Posted by lvliberty1 at 12/12/2008 @ 4:22pm

    So by your own posted statistics it looks like 68% of Americans would like to see labor unions have more or the same amount of influence. That hardly seems to support your argument.

    Posted by chaoszen at 12/13/2008 @ 1:51pm

51. Posted by HAPPYLonghorn at 12/13/2008 @ 9:34pm

    Yes, happy, let's disregard what union members think. Who the fuck cares what they think, right?

    Either way 68%-13%=53% don't want unions to have less influence.

    That is still a majority, even using your bullshit modifier.

    I would love to hear you explain why union members opinions don't count.

    98% of Americans, think America is great! But, wait! 100% of them are American, so... America sucks?

    Posted by Malcontent at 12/14/2008 @ 10:02am