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15 December, 2008
A six-day occupation of a factory in the US by ICEM affiliate United Electrical, Radio, and Machine Workers Union of America (UE) in Chicago served notice that American workers will take militant action to protect their interests, specifically against the US banking industry, which ultimately was responsible for the Chicago dispute.
The occupation at Republic Windows and Doors ended on 11 December when a negotiated settlement came together between UE and a consortium of capital entities. The plant takeover started on 5 December when 200 workers occupied the Chicago factory after being given only three days notice of Republic closing the plant.
American law requires 60 days pay for workers victimized by plant closures that are the size of Republic. UE Local 1110 members were denied this in the liquidation of their factory, and they were denied accrued and unused vacation time as well. The employer, Republic, pleaded it could not pay because Bank of America had cut off the company’s line of credit, while the credit-troubled bank claimed it was the company’s responsibility to pay workers.
After six days of living and sleeping inside the plant, UE members and workers won a backpay settlement that included accrued vacation time and job benefits, and they won much more. Bank of America agreed to guarantee pay to cover the lawful plant-closing requirement, JPMorgan Chase – 40% owner of Republic Windows and Doors – agreed to contribute US$400,000, and Republic itself agreed to come up with US$114,000 to meet its payroll obligations for the week leading up to the plant takeover.
Also in the negotiated settlement, workers will receive extended health insurance coverage. The victory inspired the UE to open a “Window of Opportunity” fund in order to find a way to keep the factory operating.
The plant occupation sends a stark reminder regarding civil priorities in this period of bank bailouts, and the circumstances surrounding plant closures in the first place. It caught the attention of US President-elect Barack Obama, who said, workers were “right” to occupy the plant, because they “understand that what’s happening to them is reflective of what’s happening across the economy.”
The UE sent a potent message on how to protect workers’ benefits during the bailout bonanza. The ICEM commends its US trade union affiliate for taking – and winning – this timely workplace action.