|
On the surface, the story of recent labor activism in Chicago sounds like a wonderful moment in progressive advocacy. Workers for Republic Windows and Doors staged a protest after the company shut down without giving them prior notice, as required by state and federal law.
Progressives targeted Bank of America, a major creditor of the company, even though the company, not the bank, infringed the workers' rights. Progressives argued that because Bank of America received funds under the federal "bailout," it should extend additional credit to the company so that the workers could receive wages and benefits to which the law entitles them.
But the story is far more complicated than the simplistic narrative of EVIL BANK versus POOR WORKERS and SUFFERING COMPANY indicates. Here's why!
|
Progressives' Misdirected Advocacy
While progressives and the media focused on Bank of America, Republic Windows and Doors finished a series of transactions
through which it: (1) closed down its Chicago location; (2) purchased and consolidated operations with a similar company in Iowa; and (3) discarded its Chicago workers without giving them statutorily required notice. Also, thanks to "our" advocacy, the company has accomplished this scheme without incurring liability (or even any significant bad press). Why? Because the Left bullied banks to extend additional credit to this sinister corporation.
Republic Windows and Doors Received a Bailout Too!
To make matters worse, recent reports have uncovered an additional fact about the company: In 2002 and 2003, the City of Chicago pumped nearly $10 million into the company as part of redevelopment efforts. The city hoped to bring jobs to the city and to remedy "urban blight."
So, while liberals bashed Bank of America as an example of how the bailout privileges greedy banks over "working" Americans, the company received millions of dollars in "bailout" assistance as well. But now, the company has abandoned the city to pursue activities in a cheaper location. Fortunately, the workers will collect severance pay and benefits, but the company successfully took millions from the city and an additional $2 million from Bank of America and JP Morgan Chase (which they undoubtedly offered for public relations purposes).
Progressive advocacy has helped shield a company from liability and public scrutiny, even though that company's actions are indistinct from the behavior of US companies who relocate abroad (or "outsource"), pursuant to NAFTA and other trade pacts, leaving their dedicated workers behind. I believe that the Left can and must do better than this.
The solution to worker difficulties requires a concerted effort at enhancing this nation's economic safety net. The "trickle down" bailout does not work rapidly enough. Instead, state and local governments must provide distressed individuals with direct benefits, including job training, education, increased welfare, and higher unemployment benefits. So, after progressives finish celebrating "their" victory in Chicago, I hope they take a moment to ponder this realty: After exhausting their severance pay, many of the workers will likely remain unemployed, lack health benefits, and have very few opportunities for alternative employment (due to the economic downturn). Perhaps that does not matter since we beat up a bank.
PS: And just for good measure, the owners of Republic Windows and Doors purchased a $2.6 million condominium in Chicago just last year. The price of their luxury apartment exceeds the amount of money owed 200 workers for two months salary and benefits.
Darren Hutchinson |
STATE BLOGS
Powered by: SoapBlox