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FrenchieCat Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 04:05 PM
Original message
Bank of America Offers Loans to Republic for Workers
Source: Bloomberg

Dec. 9 (Bloomberg) -- Bank of America Corp. will provide a “limited amount of additional loans” to shuttered Republic Windows & Doors LLC in Chicago to pay employees occupying a building after the bank ended the company’s line of credit.

Bank of America isn’t obligated to pay Republic’s employees or make additional loans to the company, the Charlotte, North Carolina-based bank said today in a statement. Republic closed last week, sparking the sit-in by employees who blame the bank for cutting off the Chicago company’s credit.

The bank also said it must rely on Republic and its management to negotiate the employee claims because it doesn’t have a direct relationship with the factory’s workers.

The United Electrical, Radio and Machine Workers of America, which represents the Republic employees, plans a rally at noon tomorrow at the Bank of America building in Chicago. The bank has received $15 billion from the U.S. Treasury as part of its effort to boost capital, while Merrill Lynch & Co., the securities brokerage it is buying, received $10 billion


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ahQLJY.mx0Cg&refer=home



:woohoo:

Workers' won!

Obama spoke up for the workers from his mighty large Bully pulpit via his big microphone.
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BrklynLiberal Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 04:07 PM
Response to Original message
1. That is good news. I want to hear some more about this other window
company that the owner of Republic bought under his wife's name.
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jetphixer Donating Member (126 posts) Send PM | Profile | Ignore Tue Dec-09-08 04:28 PM
Response to Original message
2. Good Deal
I have to give coo dos to BofA for this I realize it is not there responsibility to pay the workers but they did make the load to the company
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stray cat Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 04:32 PM
Response to Reply #2
3. agreed and welcome to DU - a good move by BoA
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WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 04:59 PM
Response to Original message
4. No win here...
Republic is still responsible for settling the workers claims. Somehow I think after Republic is done with the money, their will be very little if anything left for the workers.
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stray cat Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 05:09 PM
Response to Reply #4
5. I don't trust Republic - its there responsibility to settle their accounts with their workers
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catnhatnh Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 05:21 PM
Response to Original message
6. Nope-this is another loss...
BOA killed the business by denying credit and their offer is to loan enough to "pay the employees" which means they STILL lose their jobs because a bank, bailed out to maintain fluidity to businesses, will part with a pittance to pay off the federal minimums while ignoring the intent of the bailout and only to rid itself of the public face of the workers and businesses they are fucking to death.

If viable businesses are being killed then BOA should account for every dime they have received.
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Thickasabrick Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 05:29 PM
Response to Reply #6
7. But are you sure this was a viable business? nt
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MilesColtrane Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 05:43 PM
Response to Reply #7
9. Banks loaning money to people who couldn't pay it back is what started this economic shitstorm.
Some people overlook that in their enthusiasm to rip BoA.
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Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 06:14 PM
Response to Reply #9
11. No It was derivatives and other aspects of deregulation
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Speciesamused Donating Member (331 posts) Send PM | Profile | Ignore Tue Dec-09-08 07:29 PM
Response to Reply #6
15. Hear, Hear.....
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robinlynne Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 08:05 PM
Response to Reply #6
16. NO, you jissed some news. BofA didn't kiill the business. the owner just bought a new
window factory in another state to get away from the UNion!!!!!!!!
the owner killed the business, and opened an identical new business away from the Union.....
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WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 11:27 PM
Response to Reply #16
18. You have a link for that?
That's some interesting info if true.
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robinlynne Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Dec-10-08 12:13 PM
Response to Reply #18
21. It was on DUs greatest page a day or two ago. Sorry didn't keep the link.
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Union Thug Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-11-08 09:56 AM
Response to Reply #6
23. That is true, but in these times, we have to recognize the small victories.
In this case, we see labor dropping their 30 year history of passively acquiescing to the bosses and moving back a more militant and more effective means of negotiating. Yeah, they've lost their jobs in either case, but at least the agreement by BoA is a step in the right direction and makes it more likely (certainly no guarantees at this point - Republic is holding the ball now)that they will received what's owed to them under the law.

If nothing else, I hope this incident help spark the flame that motivates labor to wake up and start taking back what we've lost over the past 3 decades.
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natrat Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 05:35 PM
Response to Original message
8. these big banks are pure shit
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Better Believe It Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 05:53 PM
Response to Reply #8
10. This Appears To Be A Huge Victory for the Republic Workers
It appears according to news reports that the Bank of America will make the loans to cover all their wage claims including 60 days pay under the WARN act.

The sit-in tactic which resulted in mass media coverage and widespread support for their action has opened the door to victory.


------------------------------

Republic Talks Continue in Chicago

Talks that began at 1:00 pm today in Chicago are continuing. No settlement has reached at this time.

Yesterday, Bank of America issued a statement that it was willing to provide a "limited amount" of additional loans to Republic Windows and Doors to help resolve the plant occupation.

Late this afternoon some news organizations published stories, based on the bank's statement yesterday, that are factually incorrect (an accurate account appears on the Chicago-Sun Times website). http://www.suntimes.com/business/1322130,republic-windows-loans120908.article

We will provide updated information as it becomes available.

http://www.ueunion.org/uenewsupdates.html?news=433

---------------------------------------------

New Release
Statement of UE National Officers on the Plant Occupation in Chicago
09 December, 2008

As most Americans who follow the news know by now, the members of UE Local 1110 have peacefully occupied the Republic Windows and Doors factory in Chicago since the evening of Friday, December 5. That was the day when their plant suddenly closed and their jobs taken from them, with only three days notice, and without paying workers the vacation they had earned and the 60 days pay that the company owes them for not giving the 60 days plant closing notice required by the WARN Act. The workers now conducting a round-the-clock sit-in at the factory have vowed to stay there until they achieve justice from Republic and from its chief creditor, Bank of America.

Local 1110 members took this action with the unqualified support and encouragement of the UE National Union. We stand fully behind these brave union members in this fight. By their audacious initiative, they have issued a profound statement on behalf of all UE members and working people everywhere. That message is that our country has been following an economic course that is terribly wrong, and economic recovery requires a bailout for workers, not CEOs. Or as the Reverend Jesse Jackson put it, as he delivered food donations to the workers at Republic two days into their sit-in, “We’re going to have a self-induced depression because we are trying to change our economy from the top down. It must be changed from the bottom up.”

We call on working people and supporters of social justice everywhere to stand with us and defend this occupation, support the Republic workers’ continuing struggle for justice, and follow their lead in building a broad movement for economic justice and equality.

On behalf of all the members of UE, we want to express thanks for the broad support the Republic workers have received in their struggle, from people across the country and around the world. We particularly appreciate the supportive public statement from President-elect Obama; the strong advocacy on behalf of the workers by Rep. Luis Gutierrez, the support of Rep. Jan Schakowsky, and the help and inspiration provided by Rev. Jackson. The assistance of the Chicago labor movement and national Jobs with Justice has been invaluable.

Workers at Republic Windows and Doors came into UE four years ago, with a resounding 73 percent vote in an NLRB election, because they wanted a union that was democratic and that would enable workers themselves to take the initiative in fighting for fairness on the job. From the start these workers were in synch with UE’s philosophy that workers gain improved economic and working conditions through unified, rank-and-file action. They applied that approach successfully in negotiating contracts and in dealing with grievances in their plant. That UE formula of democracy plus worker mobilization is what made the current historic struggle possible. It’s important to note that the members of Local 1110 chose this course of action through discussion and a democratic vote.

The action of the Republic workers fits well within UE’s unique tradition of empowering and assisting working people to conduct their own campaigns for justice and economic security. The Preamble of the UE Constitution, unchanged since its adoption in 1936, articulates the principles that built our union and which make possible the kind of creative, bold action that has captured the attention of the nation and the world at Republic. “We…form an organization which unites all workers… and pursue(s) at all times a policy of aggressive struggle to improve our conditions.”


John Hovis
General President

Bruce Klipple
General Secretary-Treasurer

Bob Kingsley
Director of Organization

http://www.ueunion.org/uenewsupdates.html?news=432
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Waiting For Everyman Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 06:55 PM
Response to Original message
12. I'll bet a usury cap on interest in general would save a lot of these businesses.
If Republic's interest rate was lowered, would it be viable? Business will pick up eventually but it'll be gone by then, which is stupid.

All interest should be capped and all outsourcing stopped (or penalized).
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WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 07:05 PM
Response to Reply #12
13. Impossible....
What do you think the interest rate was? Probably pretty low on a business credit line. The problem may have been the size of the loan, or possibly even previous defaults by Republic.
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Waiting For Everyman Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 07:20 PM
Response to Reply #13
14. Maybe, but it would be interesting to know.
I kind of doubt it was a low rate. I find it likely that the banks are doing to businesses what they're doing to other kinds of borrowers. If not before, then now.
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WriteDown Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 11:29 PM
Response to Reply #14
19. Making them default to reduce income?
Does not seem likely. Especially a steady stream of income such as a business where income is thoroughly verified before issuing the loan. I have a feeling that Republic is responsible for a lot more of this than we know.
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JDPriestly Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 09:17 PM
Response to Original message
17. Hey, BofA, Goldman Sachs, etc., in case you didn't notice, we own you
now, not the other way around. We the people own you. Just wait. You too CitiBank.
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Zhade Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-09-08 11:36 PM
Response to Original message
20. Negotiate? Fuck that. Pay them what's owed. Period.
NT!

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Union Thug Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-11-08 09:46 AM
Response to Original message
22. Good first step - now Republic need to follow through. Oh yeah, "Direct Action Gets the Goods..."
As the wobs used to say. And they were right. Keep on fighting!
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