Tuesday, December 9, 2008

Bank of America Bailout Fallout

The standoff at Republic Windows & Doors in Chicago, which started Friday, pits workers who were given only 3 days notice of the factory closing -- and no severance or back vacation pay in violation of the WARN Act -- against the company and its creditor. That would be the Bank of America. BOA, which got its taxpayer bailout money, refused to extend enough credit for Republic to keep operating, spurring Illinois Gov. Rod Blagojevich (see story below) to suspend State of Illinois business with BOA.

Says labor attorney Hanan Kolko, "If the effect of the bailout is that banks do okay and these people who were making $28,000 a year are denied their WARN Act money and then disappear into the miasma, then something is not right."

(Image: New Bank of America logo)

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