Last December, Barack Obama commended unionized factory workers at Chicago-based Republic Windows and Doors for demonstrations in pursuit of back pay they were owed when their company went under after failing to secure operating credit due to the financial crisis; management tried to relocate the factory to a right-to-work state in response. The workers eventually secured their back pay but were left jobless. At the time, Obama's public support -- a rare pro-labor demonstration from a sitting president -- was seen as a sign of hope among labor unions. But now we return to our story already in progress, and find that there may be a happy ending after all. Republic was bought in bankruptcy court by a California company, Serious Materials, that has a green bent. Now the factory is reopening and Serious intends to rehire all 250 workers who were laid off, anticipating demand for their product due to provisions in the economic stimulus calling for the weatherization of low-income homes. Vice-President Biden, who is heading up the Recovery Act's implementation, announced the news in a press release that offers the event as an example of the way the recovery bill will create jobs. And, indeed, this is exactly how the bill should function: government creates demand, spurring private sector growth and innovation. Not only will 250 people be taken off the unemployment rolls, but they'll be paying rent and putting money into the service sector. Rinse and repeat and that's where the economic recovery will come from. One has to wonder if there was some behind-the-scenes string pulling to put this deal together -- after all, it's almost too perfect, between the labor story line, the economic recovery package and the environmentally friendly orientation of the new owners. The chairman of the company's board, Marc Porat, did max out to Obama in the last election, but I'd be more surprised if the California-based chairman of a green construction company hadn't donated to the Democratic presidential nominee. Props to the White House for keeping tabs on the Republic story and gaining a nice, easy-to-understand example of what their policies are trying to accomplish.
-- Tim Fernholz
