Wednesday December 10, 06:15 AM
Workers occupying shuttered Chicago factory offered a deal
By Mira Oberman
CHICAGO (AFP) - Workers occupying an abruptly shuttered Chicago factory have been offered a lifeline after the bank which cut off financing to the window maker said it would give the company a new loan to help cover the costs of their vacation and severance pay.
The 240 workers who began the sit-in on Friday to fight for compensation they were guaranteed by law have become a symbol of the suffering of hundreds of thousands of people who lost their jobs amid a deepening recession.
Bank of America (NYSE: IKJ - news) was roundly criticized for cutting off financing to Republic Windows and Doors after it had received 25 billion dollars as part of a federal bailout package aimed at fixing the frozen credit market.
The plant's union estimates that the company owes its workers about 1.5 million dollars in accordance with federal rules governing mass layoffs.
Politicians and community activists made pilgrimages to the plant to stand in solidarity with the workers and threaten both the bank and the window maker with legal action, public inquiries, and boycotts.
President-elect Barack Obama even waded into the mix at a press conference on Sunday where he said the workers deserved to be paid for benefits they had earned.
"It's also important for us to make sure that the plans and programs that we design aren't just targeted at maintaining the solvency of banks, but they're designed also to get money out the door and to help people on Main Street," Obama said.
Bank of America initially said that it did not have the right to control whether Republic honored its commitments to its workers and that it had provided the "maximum amount of funding we can under the terms of our agreement."
The bank (NASDAQ: TBHS - news) issued a statement Tuesday saying it was "prepared to provide a limited amount of additional loans to Republic to help fund a comprehensive resolution of employee claims ... despite the fact that Bank of America is not obligated to pay Republic's employees or make additional loans to Republic."
A spokeswoman for the United Electrical Workers union said the statement was released prematurely because negotiators had not yet finished hammering out a deal.
"We're hopeful that something might happen today, but nothing has been decided and no settlement has been reached," Leah Fried told AFP.
The union issued a statement later on Tuesday saying there had been progress in talks with the bank and that the two sides would meet again on Wednesday to try to forge a deal.
"There are still important details to be worked out before the parties can reach an agreement," the union said.
Any deal will have to be voted on by the 240 union members, who continue to camp out at the factory.
Supporters have been dropping off food and coffee and the workers brought in sleeping bags and blankets to set up beds on the floor of the cafeteria.
Support has also been pouring in from unions across the country.
"Every worker here really understands that this struggle has become more than about what they're going through but really is about what so many people have been going through," Fried said.
"The atmosphere is pretty relaxed. People are chatting and laughing and playing with their kids and people feel like they're doing the right thing and they're very resolved."
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