Chicago Area Local News

CHICAGO (CBS) ― Chicago window factory workers in the fourth day of a sit-in at their former workplace, Republic Windows and Doors factory are meeting Monday with politicians, company owners and bank officials to resolve the standoff.  Gov. Rod Blagojevich ordered the state to suspend business with the bank that pulled the factory's line of credit. CBS 2's Mai Martinez was there.

The company shut down abruptly on Friday after Bank of America canceled its line of credit due to a sharp downturn in Republic's business.

The laid-off workers continue to guard the assets inside their Goose Island plant in around the clock shifts to make sure the items are not removed. They say the remaining doors, windows, and machinery are the only collateral they have left in their fight to get what they feel they are owed.

The 300 workers demanding severance and vacation pay have become a national symbol for thousands of employees laid off nationwide when President-elect Barack Obama took their side.

CBS 2's Joanie Lum reports that Governor Rod Blagojevich met with workers inside the factory Monday, then came out and said the state will suspend business with Bank of America.

"If the taxpayers who do all the work in our country have been already asked to bailout these big banks, then we expect those banks to bailout businesses like this to keep them afloat, and keep these workers working," said Governor Blagojevich.

Blagojevich now has ordered state agencies to reject business with Bank of America.

"Every agency has been ordered to suspend doing any business with the Bank of America. The Bank of America received $25 million in taxpayer money as part of the financial bailout," Blagojevich said.

"This is exactly and precisely the kind of thing that isn't right when, on the one hand, powerful special interests get the help of taxpayer money to bail them out, the banks. And yet the purpose of that money was supposed to be to be to provide a line of credit to businesses like this."

The Governor's sentiments were echoed by more than a dozen Chicago Aldermen, as well as members of several other unions and community groups. All are calling for the city of Chicago to stop doing business with Bank of America as well.

"Bank of America is thumbing its nose at Congress and America's taxpayers by taking federal recovery funds while refusing to extend credit to a small manufacturing company with a strong history of profitability," said Alderman Joe Moore.

Illinois Sen. Dick Durbin said he would talk to fellow senators about reminding banks that tax payer dollars are not for dividends or executive salaries.

"They're for loans and credit to businesses just like Republic," he said Monday while visiting the plant site. "We have been sending billions of dollars to banks like Bank of America and the reason we have sent them the money is to tell them that they had to loan this money out to companies just like Republic so that we can keep these companies in business and not lose these jobs here in the United States."

On Sunday, workers were amazed by a mix of supporters, politicians and journalists who packed a foyer outside.

"We never expected this," said Melvin Maclin, a factory employee and vice president of the local union that represents the workers. "We expected to go to jail."

The Rev. Jesse Jackson and U.S. Rep. Jan Schakowsky met Sunday with union workers as they were in the third day of a sit-in protest. CBS 2's Pamela Jones was there.

Jackson, the civil rights icon and head of Rainbow-PUSH Coalition, approached Republic Windows and Doors amid signs and supporters, hugs and handshakes. He pledged his support for more than 200 workers who say they'll stay at the factory all weekend to protest losing their jobs and benefits.

"These workers must be congratulated for having the courage in the great tradition of Dr. King ... and in the tradition of Cesar Chavez, in the tradition of Rosa Parks," Jackson said. "Your sitting down, in many ways, allows America to stand up. Workers all around the nation who are now facing massive layoffs. It's your job, it's your plant. Stay there and fight for it until justice comes and justice will come."

He brought more than words. The Rainbow-PUSH Coalition donated some 300 turkeys, and bags of food passed hand to hand. It's the only assembly line running here since the plant shut down Friday, reportedly because Bank of America – which received billions in the government bailout of financial institutions -- would no longer extend the company's line of credit.

It's a situation Jackson calls unacceptable.

Congresswoman Jan Schakowsky visited the plant to give her breakdown of the company's obligations to workers, including severance pay and health care benefits. Schakowsky told CBS 2 she plans to talk with members of the U.S. Treasury about the workers' situation.

Also Sunday, President-elect Barack Obama called for more oversight of bank bailout funds and for the workers at Republic Windows to be given the pay and benefits they've earned.

"Number one, I think that these workers, if they have earned these benefits and their pay, then these companies need to follow through on those commitments," Obama said during an appearance. "And number two, I think it is important for us to make sure that moving forward, any economic plan that we put in place helps businesses to meet payroll so that we're not seeing these kinds of circumstances again."

Leah Fried, an organizer for the United Electrical Workers union that represents the workers, said the company told the union that Bank of America has canceled its financing.

Bank of America received $25 billion as part of a government bailout. Some workers carried signs Sunday that said: "You got bailed out. We got sold out."

The bank had said in a statement Saturday that it wasn't responsible for Republic's financial obligations to its employees. Republic has not commented on the sit-in.

Meanwhile, Illinois Attorney General Lisa Madigan said in a news release late Sunday that she had representatives at the factory investigating the closure.

"I am extremely concerned with the actions of this company, which are having a significant impact on employees and their families," Madigan said.

One of the factory's workers, Silvia Mazon, said in Spanish that she needs the money owed to her for an $1,800 monthly house payment. The 40-year-old from Cicero said she has enough money saved to survive for one month.

Illinois law requires that a business give the workers and the union 60 days notice if there is going to be a plant closing. The union says they have a meeting Monday afternoon scheduled with management and also with the bank at an undisclosed location downtown.

"You know this is not just the people of Republic. It's the people across America, and we are high hopes right now, and in the positive spirit and we are thinking we are going resolve our situation soon," said Vincent Rangel, a laid off worker.

CBS 2's Mai Martinez, Joanie Lum, Pamela Jones and the Associated Press contributed to this report

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