Workers at Republic Windows & Doors in Chicago have ended their sit-in over unpaid wages and benefits, after the company shut down on three days' notice. Were they right to take over the premises?
The story has been widely covered and reported elsewhere. My question is, why were the lawlessness and trespassing permitted?
One phone call to the Chicago Police Department should have been all that was necessary. After that, the police should have begun removing the trespassers, one at a time and as peacefully as possible. Did Republic Windows officials call the Chicago Police Department and request that trespassers be removed?
Bank of America threw some money at the deal, but what possible tie-in was there just because B of A sucked up money in the Federal bail-out. Any bank money should have been loaned only to a credit-worthy borrower providing strong payback guarantees. Who will really pay for the $1.75 million deal for the Republic Windows' workers? Owners of the company? Of the bank? The bank's shareholders? The FDIC?
Would angry workers have burned or destroyed the plant?
The workers (and unions) feel emboldened by their success. Businesses everywhere must now be on high alert for similar action by workers facing lay-off or termination. Unless we are headed down the slippery slope to lawlessness in the workplace and in society in general, business owners and lenders must be ready to protect what's left of their investments.
I don't know, or care, about the reasons that Republic Windows & Doors closed. We're in a recession, folks. Many are already being affected. Many will be affected. It's going to be a long winter, and you'd better be saving up your nuts.
Will Recession turn to Depression?
"The outcome also may be a warning to companies to obey federal law on giving workers at least two months' notice before closing large plants. Workers at Republic said they were given only three days' warning." (Chicago Tribune, (December 12, 2008))
With credit extension the way it is right now, what is Republic Windows officials didn't know two months ago that they would have to close? Will every company in the U.S. now have to issue a warning that it may have to close in two months? That ought to be good for the economy. NOT!
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2 comments:
>>>> Republic Windows Workers - right or wrong?
>>>> Were they right to take over the premises?
As far as absolutes, I would agree that it is not right. However, ownership seemed sympathetic to their cause, although probably to the extent that it allowed the company leverage against the bank to free up their own credit line which would help their corporate purposes as well.
At least as reported, I would have to say that they conducted themselves with peaceful dignity and respect. Whoever was the organizing force of this sit-in did a bang-up job in that department.
>>>> The story has been widely covered and reported elsewhere. My question is, why were the lawlessness and trespassing permitted?
As they said in the 60's, because, "the whole world was watching."
>>>> One phone call to the Chicago Police Department should have been all that was necessary.
Except that Daley and the Dems call the shots. Clearing the factory wouldn't give Jesse, Rod and Dick valuable camera time.
An additional "political" problem, as reported, was that the owners were in the process of building a new plant with lower costs further west in Iowa or Nebraska(?) Meanwhile, with that knowledge, it looked bad for the company, as they utilized a TIF district to build, remodel and set up shop where they were. They were ready to abandon the agreements they had made with the city.
>>>>Bank of America threw some money at the deal, but what possible tie-in was there just because B of A sucked up money in the Federal bail-out.
Yep - It's similar to taking a loan from a loan shark. Once private enterprise takes money from the government, whether it's the window fatory and the TIF, or it's the bank with bail-out money, you are now beholden to the political power brokers as well. Politics elbows its way to the front, while logic and reality takes a back seat.
In this regard, rather than accept market forces, both the company and the bank willingly drank the "Cool-Aid", and this was the price they paid. And more importantly because we allow such government intervention everywhere nowadays, it is the price that the TAXPAYERS have tacitly agreed to pay.
Can't wait for government health care!!!!!!!!
>>>> Any bank money should have been loaned only to a credit-worthy borrower providing strong payback guarantees.
Agree absolutely. But by accepting government money rather than their fate, the B of A had no defensible choice.
>>>> Who will really pay for the $1.75 million deal for the Republic Windows' workers?
Why we will, Gus! Although a coming inflationary spiral from all this bail-out activity actually will. Honda Civics selling for $30,000 are in our future now.
>>>> Unless we are headed down the slippery slope to lawlessness in the workplace and in society in general, business owners and lenders must be ready to protect what's left of their investments.
We are already heading down that slope. Thanks to governments' tenacles invading everything, it is now GOVERNMENT that can and will call the shots. Especially now, that they are also the unseen financial partner in virtually EVERYTHING.
>>>> I don't know, or care, about the reasons that Republic Windows & Doors closed. We're in a recession, folks. Many are already being affected. Many will be affected. It's going to be a long winter, and you'd better be saving up your nuts.
Agreed. While I DO believe that we ARE headed for financial oblivion, I also think it's too soon, yet. I think that the news media overstates and sensationalizes what is going on right now. The fear they've whipped up is far larger than what the actual situation dictates.
There are probably at least 2 good years left, the markets and real estate will ease up again this spring and summer. But do get ready for the eventual financial sh*t storm coming in a year or two, though.
>>>> Will Recession turn to Depression?
Not now, but not too long from now!
>>>> "The outcome also may be a warning to companies to obey federal law on giving workers at least two months' notice before closing large plants. Workers at Republic said they were given only three days' warning." (Chicago Tribune, (December 12, 2008))
And there you go. There is federal law, and then there is reality.
>>>> With credit extension the way it is right now, what is Republic Windows officials didn't know two months ago that they would have to close?
It must have become increasingly obvious - not only were they trying to run a business affected by the real estate and financial downturns, they were also secretly(?) trying to build and staff a new plant out west. Clearly, they blundered.
>>>> Will every company in the U.S. now have to issue a warning that it may have to close in two months? That ought to be good for the economy. NOT!
Thanks to Federal law, most of them ARE required to do so. If there is no corporate money left, nor an available credit line (as there was in this case) it'll be interesting to see what happens when such closings cascade!
DBTR
DBTR, thanks for your excellent comment. You followed the story much more closely than I, and I appreciated the details you added.
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