Obama: Laid-Off Workers Occupying Factory in Chicago Are 'Absolutely Right'

Note: About 250 union workers occupied the Republic Windows and Doors plant in shifts Saturday, saying they won't go home without assurances they'll get severance and vacation pay, while union leaders outside criticized a Wall Street bailout they say is leaving laborers behind.

President-elect Barack Obama put himself on the side of the workers at the Republic Windows and Doors factory Sunday:

“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,” Obama said Sunday at a news conference announcing his new Veterans Affairs director. “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.

“Number two, I think it is important for us to make sure that, moving forward, any economic plan we put in place helps businesses to meet payroll so we are not seeing these kinds of circumstances again,’’ he said. “Have we done everything that we can to make sure credit is flowing to businesses and to families, and to students who are trying to get loans? And to homeowners who have been making payments on their homes but are still finding their property values so depressed that it becomes very difficult for them to make the mortgage payments?

“That’s where the rubber hits the road and that’s going to be the central focus of my administration.

---

More from Rupa Panoy at the AP:

Leah Fried, an organizer with the United Electrical Workers, said the Chicago-based vinyl window manufacturer failed to give 60 days' notice required by law before shutting down.

During the two-day peaceful takeover, workers have been shoveling snow and cleaning the building, Fried said.

"We're doing something we haven't done since the 1930s, so we're trying to make it work," she said, referring to a tactic most famously used in 1936-37 by General Motors factory workers in Flint, Mich., to help unionize the U.S. auto industry.

Fried said the company can't pay its 300 employees because its creditor, Charlotte, N.C.-based Bank of America, won't let them. Crain's Chicago Business reported that Republic Windows' monthly sales had fallen to $2.9 million from $4 million during the past month. In a memo to the union, obtained by the business journal, Republic CEO Rich Gillman said the company had "no choice but to shut our doors."

Bank of America received $25 billion from the government's financial bailout package. The company said in a statement Saturday that it isn't responsible for Republic's financial obligations to its employees.

"Across cultures, religions, union and nonunion, we all say this bailout was a shame," said Richard Berg, president of Teamsters Local 743. "If this bailout should go to anything, it should go to the workers of this country."

Outside the plant, protesters wore stickers and carried signs that said, "You got bailed out, we got sold out."