Send tips to Curtis Black, Newstips Editor
curtis@newstips.org
NEWSTIPS HOME | About | Follow on Twitter @ChicagoNewstips


Update: Republic Windows to close

“Just weeks before Christmas, we are told that our factory will close — in three days,” said Armando Robles, an employee of Republic Windows and Doors and president of the United Electrical Workers local there.

As Newstips reported last week, the issue for the union is Bank of America’s refusal to extend Republic’s credit line — despite receiving $25 billion in government bailout funds intended to free up lending.

Now workers are being told Bank of America is blocking payment of vacation pay and the 60 days of pay required by federal law when 60-day notice of a plant closing isn’t given.

Republic workers, joined by concerned clergy and community members, will picket Bank of America to demand payments required by the federal Worker Adjustment and Retraining Notification Act. A press conference is scheduled for 3 p.m. outside the bank at 231 S. LaSalle.

The company informed the union on Tuesday that it would discontinue all of its operations, with employees terminated as of Friday, December 5, according to Mark Meinster of UE.

According to Meinster, Republic had a $5 million line of credit with Bank of America which he believes originated at LaSalle Bank, which BOA bought out last year.

Hurt by the housing depression, Republic had shifted to making replacement windows, Meinster said.

Illinois manufacturers that would have struggled through tough times are being forced to close because their credit is being cut off, said Glenn Johnson, former chairman of the Illinois Manufacturers Association.

“I’m hearing horror stories about banks coming in and saying, it’s been a great relationship and we’ll miss you, but we just don’t like your numbers, and we’re just not going to renew your line of credit,” Johnson said. Sales are down, hurting cash flow, but “absolutely, any company is going to try to make it through.”

“It irritates a lot of people in manufacturing” that banks received bailout money “that was supposed to ease up credit” and continue to refuse to make loans, Johnson said.

Print this Post Print this Post

Category: banks & credit, jobs, labor

Tagged: , , ,

Comments are closed.


Get Newstips in Your Inbox!

Enter your email address:


Subscribe in a reader

Archives

*

*

*



*










CAN TV is a network that belongs to the people of Chicago.  For updates on local programs, and live, timely coverage of community events, sign up at http://www.cantv.org