Dec 11, 2008
Laid-off workers whose sit-in at their closed factory came to symbolize Main Street's resentment of the Wall Street bailout accepted a settlement on Wednesday that provides them the severance they asked for and two months health care coverage, the parties involved said.
The workers occupying Republic Windows and Doors agreed to the deal worked out after days of negotiations that would provide each with about $7,000, putting an end to the sit-in that began on Friday.
The total cost of $1.75 million was covered by a loan of $1.35 million provided by Bank of America Corp and $400,000 from JPMorgan Chase & Co, both creditors of Republic, said U.S. Rep. Luis Gutierrez, who helped mediate the negotiations.
Each of the more than 200 workers will be paid eight weeks salary, all accrued vacation and receive two months paid healthcare, Gutierrez said. The workers, given just three days notice of the plant's closing last week, had demanded severance covering the legally mandated two-month notice period plus the vacation pay.
"This money will only be used to pay the workers the benefits they are owed under the law, and it will not, under any circumstance, be used for corporate bonuses, luxury cars or any other perk for the owners of the plant," Gutierrez, an Illinois Democrat, said in a statement.
President-elect Barack Obama and other politicians have voiced support for the workers' cause, arguing the Wall Street bailout was not serving its purpose of loosening credit for Main Street businesses. Bank of America has tapped the bailout for $15 billion and JPMorgan for $25 billion.
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http://www.postchronicle.com/news/breakingnews/article_212192404.shtml“The workers who are asking for the benefits and payments that they have earned, I think they’re absolutely right and understand that what’s happening to them is reflective of what’s happening across this economy,” Obama said, earlier in the strike.