Money and Main Street
4 of 5
BACKNEXT
Republic Windows and Doors factory, Chicago
Republic Windows and Doors factory, Chicago

Some 260 union workers, out of a workforce of 300, took over the Republic Windows and Doors factory in Chicago when it was faced with closure in December. The workers won accolades from President Obama as they occupied the factory for six days, operating in eight-hour shifts and controlling access to the building.

Leah Fried, organizer for the Local 1110 of the United Electrical, Radio and Machine Workers of America, said that Bank of America and JPMorgan Chase declined to extend credit, prompting management to give the workers a three-day notice of closure, which she said was in violation of the 60-day notice required by the federal WARN act.

The purpose of the takeover was "refusing to allow any of the assets to leave the factory until the workers were paid what they were owed," said Fried. The workers were fighting for eight weeks of severance pay and two months of health insurance.

In the end, they won a $1.7 million settlement, Fried said. But they also got more than what they were fighting for: Serious Materials, based in Sunnyvale, Calif., bought the factory in February, saving it from closure.

"People have been slowly but surely called back to the factory," said Fried. "We have an agreement with [Serious Materials] where they have to hire back all the union workers before they can hire anyone from the outside."

Bank of America said that the factory "exhausted its original revolving line of credit with Bank of America and, because of the company's dire financial condition, we declined to extend additional credit beyond the amount of the original loan agreement." The bank also said it provided a $1.35 million loan to the company to pay its employees, "although we were not obligated to do so."

JPMorgan Chase did not return messages.

NEXT: The Colibri assembly plant, East Providence, R.I.
Last updated July 24 2009: 11:38 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
Don't give my job to Staples Hundreds of U.S. Postal Service workers protested against experimental mini post offices at Staples. Here's why some Washington, D.C. workers don't like the deal. More
Tools to make your money grow You've started saving and built a financial base. Time for a few new strategies and tools to get your money to grow even more. From real estate to IRAs, here are some tips. More
Ready to start saving? Here's how to do it right When you are just starting out or finally starting to get serious about saving, the basics will get you far. Here are more than a dozen tips that will help you lay the base for building your net worth. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.