Revolt on Goose Island: The Chicago Factory Takeover, `and What it Says About The Economic Crisis

INTRODUCTION
Kari Lydersen, a staff writer for the Washington Post, wrote the Revolt on Goose Island: The Chicago Factory Takeover, and What it Says About The Economic Crisis in 2009. This was during a time when the economy was in financial crisis and many lives were being disrupted. It is situated in Chicago, Illinois at the Republic Windows & Doors factory. This story tells how 250 members of the UE, a very progressive union took a stand for what they believed they were owed. The purpose of writing this book was to show that people in the labor force were tired of being taken advantage of and wanted their lives to matter.
THE COMPANY
The Republic Windows & Doors factory was located on what is known as Goose Island in the Chicago River. This was an area that used to be located in the heart of the industrial and commercial businesses. The area had lost most of its industrial businesses and was in a revitalizing mode to turn it back to the industrial roots that had first started that area. Republic Windows & Doors was a small family owned business that made low-cost storm windows and doors (Lydersen, 22). By moving to Goose Island, the city committed almost $10 million in 1996 to help Republic establish the new building and to grow (Lydersen, 25). The money was funded through TIF (tax increment financing) funds that are used to revitalize areas that have declined in value and use. Republic’s TIF funding came with the stipulation that the factory maintain 549 jobs for at least eight years and make “reasonable commercial efforts” to maintain more than 600 jobs until 2019 (Lydersen, 25). It was at this point that Republic started changing; their product was not of the quality as it had been previously and the company slowed down the amount of business it did with small contractors wanting to sell large quantities to subdivision developers in the Midwest.
BAILOUT
As Republic Windows & Doors was reaching this point, it was entering a financial crisis due to it excessive spending and the acquisitions of foundering companies that were already in deep debt. This was during the early to middle part of 2008 and financial institutions were also facing their own crisis. The major lender for Republic was Bank of America. They too were spending a lot of money in acquisitions of failing financial institutions and had troubled mortgages upward to $40 billion. The government had developed a $700 billion federal bailout program known as TARP or the Troubled Assets Relief Program (Lydersen, 32). This bailout was designed to allow the Treasury department to purchase or insure up to $700 billion of troubled assets such as residential or commercial mortgages or any securities, obligations, or other instruments that were based on or related to those mortgages. Due to the TARP, Bank of America was granted approximately $45 billion in bailout funds. To me, it should be noted that $20 billion of this bailout money was used to asset Bank of America in a takeover of Merrill Lynch. That is not what I would have considered the purpose of the bailout money to be used for since it was not helping anyone with a mortgage. Bank of America had extended lines of credit to Republic upwards in the amount of $6 million to assist them in being able to meet their obligations to customers and employees. By July 2008, Republic’s financial situation was looking bleak and they had lost about $3.6 million in just six months. Bank of America refused to loan them any more funds and told them that if they did not find another lender soon, they should start winding down their operations and be prepared to sell off the assets and to pay back the bank and any other creditors. The Republic Windows & Doors company ignored this advice and continued to ask for further funding to help run their business. Bank of America cut off all funding and said that this did not have anything to do with the weak housing market but due to a badly run company that was hemorrhaging and would not be able to pay back their current obligations (Lydersen, 30).
EMPLOYEES
Most of the Republic employees had been there for at least 10 years and some had been there for 34 years. Approximately three-quarters of the employees had come to the United States from Mexico, leaving families and homes behind (Lydersen, 17). Many of them had paid “coyotes” thousands of dollars to bring them across the border in hopes of getting jobs earning enough wages to eventually bring their families to the United States. When these immigrants found work at a company like Republic that paid decent wages, provided health benefits and paid leave, their did not give up these jobs easily. The employees had already been affiliated with one union that did not do anything for them. This union, CSJB, was thought to have ties to organized crime and never files any grievances on behalf of the workers. It seemed to constantly align itself with the company. So the employees decided it was time to get rid of that union and decide upon another union that would represent their interest. In November 2004 it voted for the UE (United Electrical, Radio and Machine Workers of America) Local 1110. This was considered a very progressive union that did not mind taking risk or fighting for the rights of its members.
THE CLOSING OF REPUBLIC
There had been many rumors that Republic would no longer be able to operate and keep their doors open, but all management kept telling their employees that everything was alright and that the business would continue to stay open. On November 5, 2008, a supervisor told the employees to turn out all of the lights and that everyone had to leave right now (Lydersen, 15). This seemed strange to some of the employees because people where still finishing with their work. While all other employees left, two employees acted as if nothing was wrong and hung around outside the plant to see what was going on. Immediately the plant manager and a former manager come out and looked around, than five cars drove up with former employees and supervisors. These men began removing boxes and pieces of machinery from the warehouse. There were loaded in a U-Haul that had been parked around back with the lights off. This activity continued for several days with each morning bringing more missing machinery and even the furniture in the offices disappearing. The workers realized that the company was disbanding their factory and probably setting up a factory somewhere else with the equipment from Republic. It had become news that a new window and door factory was opening up in Red Oak, Iowa and that the owner was from a company that was just incorporated on November 18, 2008. The owner was Sharon Gillman, the wife of Republic owner Richard Gillman (Lydersen, 57). On Tuesday, December 2, the plant operations manager had the workers report to the cafeteria for a meeting and told them that the plant was closing, in three days. The employees were also told that they would not receive severance pay nor pay for their accrued vacation time. Many of the workers had delayed their vacations at the request of the company due to the busy season of the window industry. This accounted for as much as $150,000 in vacation pay (Lydersen, 58). The company told the employees that the shutdown was due to Bank of America’s decision not to extend anymore credit to Republic. This was a direct violation of the WARN (Worker Adjustment and Retraining Notification) Act that had been passed by Congress. This act stated that when an employer with more than 100 employees is going to close or make significant layoffs, the employer must give the workers 60 days’ notice and if no notice is given than the employees will be owed up to 60 days’ severance pay (Lydersen, 62-63). The workers were angry and worried about how they were going to support their families. Instead of accepting defeat, UE Local 1110 decided to revolt and conducted a takeover of the warehouse. At this time in history this was very rare and considered a bold move by the workers. The workers were going to stay in the warehouse holding onto the assets that were left to apply pressure to get the pay that they deserved. The UE went after Bank of America because they felt that they bank would want to preserve their image to America and that the bank willing knew what Republic was planning and did not encourage Republic to do the right thing with the employees. The employees had many outside supporters in the way of politicians, other unions, and the general public. The occupation lasted five and a half days with the employees getting the severance pay and their accrued vacation pay. The company was also bought in February of 2009 and the most of the 250 Republic employees were rehired by the new company.
CONCLUSION
At first I was not sure how this book would play out, but I must admit that I would have done the exact same thing that the UE Local 1110 employees did at Republic. This was a stand for what was right by the law and a stand for solidarity. The employees put all of their personal fears aside and came together to make sure that the country realized that this was not only their fight, but the fight of other employees that companies were pushing out due to the economy. It is also important to realize that when the financial institutions were given the bailout money, that not all of that money was used to help people keep their homes. This book shows both the good and the bad sides of corporate business. It also shows how some people have values and ethics and how some owners and managers have no ethics unless it pertains to them. This book is very easy to follow and understand along with having the ability to pull all of us that have lost a job into the excitement and pride that the former Republic employees felt when they won their fight. This book is an important chapter in the history of American labor forces. This book shows how by standing together employees and a community can organize and defeat the business giants. A must read to learn more about unions and the courage of the working class. The Revolt at Goose Island is about the resilience of the human spirit.

References
Lydersen, K. (2009). Revolt on Goose Island: The Chicago factory takeover, and what it says about the economic crisis. Brooklyn, NY: MelvilleHouse.