Home -> Law Blog Directory -> Labor & Employment Law Blogs -> Charles A. Krugel, Labor & Employment Law, HR Law

Labor & Employment Law

: Charles A. Krugel, Labor & Employment Law, HR Law

Chicago?s Republic Windows to Reopen With New Owners Which the Labor Union Helped to Obtain

By charlesakrugel

Interesting items about Republic Windows & Doors based in Chicago’s Goose Island neighborhood.  This is all just being reported in the past few hours.

• http://www.chicagobusiness.com/cgi-bin/news.pl?id=33130 (Crain’s Chicago/AP article)
• http://progressillinois.com/2009/2/26/republic-windows-workers-back-to-work (Progress Illinois article)

You might recall this plant being in the news because it was announced that right after the 11/08 presidential election, and during the December holiday season, plant workers (about 240 of them) staged a multi-day 24/7 sit in at the plant to protest the closing of the plant, without sufficient prior notice, nonpayment of final wages, and their bank refusing to lend them money for payroll and other expenses, even though the bank received substantial funds from the former president’s initial stimulus (bailout) package. This was reported in national and international news and drew commentary from many politicians and pundits.

As discussed below, you have to read some of the earlier news stories and read between the lines to understand the importance of this takeover.

Republic is a traditional brick and mortar company that’s been operating here for years.  Incidentally, the company was also the recipient of numerous tax breaks given to industrial companies maintaining a Chicago presence, using Chicago workers, training employees, insurance, benefits, etc.  How that money was used is also the subject of debate, but that’s another story.

However, the union, United Electrical Workers Local 1110, used a business-like and progressive approach in helping to save the company.  Sort of like using a “free agent” model, they went into the marketplace and sought a new owner to take over the company with the same employees.

It was announced today that Sunnyvale, CA, based Serious Materials Inc., bought the company.  I’m pretty sure that concessions were made, but haven’t heard about those yet.  But this is a really constructive approach to labor management relations (more constructive than the proposed Employee Free Choice Act).   A company is saved, jobs are saved, and perhaps new jobs are created.

Congratulations to the employees, union, the company and our economy!

Full post as published by Charles A. Krugel, Labor & Employment Law, HR Law on February 26, 2009 (boomark / email).