Via Matt, we learn that Barack Obama is supporting striking union members:
“When it comes to the situation here in Chicago with the workers who are asking for their benefits and payments they have earned, I think they are absolutely right. What's happening to them is reflective of what's happening across this economy.
"When you have a financial system that is shaky, credit contracts. Businesses large and small start cutting back on their plants and equipment and their workforces. That's why it's so important for us to maintain a strong financial system. But 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 are designed to get money out the doors and to help people on Main Street. So, number one, I think that these workers, if they have earned their benefits and their pay, then these companies need to follow through on those commitments."
But the story behind the strike is instructive as well. Apparently the business, Republic Windows and Doors, lost out on a operating loan from Bank of America and claims it cannot pay its workers salary and benefits they have earned, leading to a sit-in by the unionized employees. It's a perfect example of how the financial industry affects every-day businesses, and Obama does a good job explaining the parallels himself. But what's worse is that the owners of the company apparently registered another corporation with the apparent intent of restarting without their union workers:
People who apparently have ties to the financially strapped Republic Windows formed a limited liability corporation in Illinois last month, Echo Windows & Doors, that has bought a similar plant in western Iowa.
Sharon Gillman, who shares an address with Republic President and CEO Rich Gillman, is listed as an officer of Echo Windows & Doors LLC, which was incorporated in Illinois on Nov. 18, according to secretary of state records. [...]
An "echowindows.com" Internet domain has been registered, but no content has been placed on the site. The administrative contact on the domain registration is Amy Zimmerman—the same name as the vice president of sales and marketing at Republic.
Sleazy, and incidentally, great reporting form the Trib. There's also interest in the case from Illinois Attorney General Lisa Madigan and other government officials, so perhaps the press (and presidential) attention can lead to these workers getting their due. One sidenote: It seems there is a lot of blame being put on Bank of America, but without knowing all the details of the case, it seems like management is the actual bad actor here. But going after BoA is obviously a smart tactical move for the union (and the politicians), since the immortal rule of American litigation applies: Go after them with the money.
--Tim Fernholz
