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Wednesday, December 10, 2008

Workers win a big round in Chicago factory sit-in

The creditor of a Chicago plant where laid-off employees are conducting a sit-in to demand severance pay said Tuesday it would extend loans to the factory so it could resolve the dispute, but the workers declared their protest unfinished.

A resolution seemed nearer as Bank of America, which yanked the plant's financing last week, announced it sent a letter to Republic Windows and Doors offering "a limited amount of additional loans" to resolve its employee claims.

About 200 of the 240 laid-off workers had responded to their three days' notice of the plant closing by staging a sit-in and vowing to stay put until assurances they would get severance and accrued vacation pay.

Lawmakers have criticized Bank of America for cutting off money to the plant after it exhausted its credit line, even though the Charlotte, N.C.-based bank itself received $25 billion from the government's financial bailout package.

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