Bank of America will extend credit to Chicago window and door maker

@spalladino (17924)
United States
December 9, 2008 2:58pm CST
It looks like the people won this round: http://www.msnbc.msn.com/id/28144080/ CHICAGO - Bank of America says it will extend credit to a Chicago window and door maker whose workers have occupied the factory for five days. The bank said Tuesday that it's willing to give the Republic Windows and Doors factory "a limited amount of additional loans." That's so it can resolve claims of employees who have staged a sit-in since Friday. The factory closed Friday after Bank of America canceled its financing. Workers were given three days' notice. But they refused to leave and vowed to stay there until receiving assurances they would receive severance and accrued vacation pay. The bank has been criticized for cutting off the plant's credit after taking federal bailout money. Do you think the sit in and media exposure helped bring this about?
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6 responses
@iriscot (1290)
• United States
9 Dec 08
Is this money only to pay the benefits of the workers or will BOA extend enough credit so the company can continue to operate? If it's only money to pay the benefits, that won't help the workers keep their jobs.
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@spalladino (17924)
• United States
10 Dec 08
From the additional information I've heard since posting this discussion, it looks like the loan is only going to be limited to the amount needed to resolve the employee claims for severance and accrued vacation pay. It doesn't look like their jobs are going to be saved at this point.
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@iriscot (1290)
• United States
10 Dec 08
If this is only a loan to pay the benefits how is the company expected to pay the bank back. Maybe they will take chapter 11 or try and sell out.
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@newtondak (3950)
• United States
10 Dec 08
It sounds like they're going to provide the money to pay the employees, but it doesn't sound like they're going to provide the money for them to continue in business.
@spalladino (17924)
• United States
10 Dec 08
No, unfortunately, it doesn't look that way to me either.
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@irishidid (8734)
• United States
9 Dec 08
BOA is as dishonest as the day is long. Read some of the posts on bankofamericasucks.com. And it isn't just the customers complaining. They've got something rotten up their sleeves with these additional loans.
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@spalladino (17924)
• United States
9 Dec 08
I've been hearing more and more about them lately when it comes to the way they treat their customers, which concerns me since BOA is our largest local bank in our little town. We have many retirees living in the area and some folks have been actively pushing them to move their money out of there.
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@irishidid (8734)
• United States
9 Dec 08
I learned the hard way what they are all about. Luckily it was only $50 but many have lost much more. The $50 was my disabled daughter's btw and went into the pocket of a dishonest teller. If you or anyone you know bank with them, make a copy of any and all transactions including deposit slips you write out.
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@anniepa (27240)
• United States
10 Dec 08
That's disgusting, Irish! $50 is $50! I'd make sure to spread to word to everyone I know. I don't have any BOAs in my area so I don't ever bank there anyway but if I did I'd dump them. With their computer systems these days it had to have been dishonesty and not a simple mistake. Annie
• United States
10 Dec 08
This makes me wonder if Bank of America just gave in to the pressure that these employess & politicians that support them put on, or what. I doubt that it's everything - the sixty day's pay, severence pay, extended benifits, & paid vacation time that was not used. I admit that i don't have ALL the facts, but I'm sure that there was a lot of unsaid stuff that the news or the parties involved kept quiet about. i'll get to the point in this thought in a moment. I have read from another news source (reliable or not, I'm not sure - reliably unreliable, for all I know), that the wife of the owner of that window & door maker factory recently bought another company similar to that factory in Ohio. Furthermore, the couple also owns a 2.6 million dollar condo. The point is, there is the possibility that Bank of America did not expect the fatory to just close abruptly like that, & for them to be left high & dry by the owner like that. They expected that if the place closed, the owner had the monies available for the 60 days, severance, unpaid vacation time, & benefits. Another minor possibility is that when the owner requested to at least provide a loan to pay for the requirements, the representative just did not hear them exactly, 7 just automatically said, "No." That is, if the owner did indeed make that request. There is also that possibility that the owner exaggerated the situation & did not ask, but just chose to place all blame for the abrupt closing on bank of America, & had no intention of giving the employees what they were entitiled to by law. He figured just blame Bank of America. Even then, no matter who is at fault, lie the law says, I don't think just the unpaid vacation & severance pay is enough. The employees are owed 57 more days. This just re-inforces those people who were against bailing out the banks with taxpayer money.
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@ZephyrSun (7385)
• United States
10 Dec 08
I think it's great for those employees but, I'm also really pissed about bailing out those dang banks so they could buy things; ball parks, other banks instead of lending money like it was suppose to do. I think we should all do a sit in at these financial institutions to protest the way they are spending our money.
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@anniepa (27240)
• United States
10 Dec 08
I have little doubt the sit-in and the bad press got them to give in, at least a little bit. As has already been posted, it doesn't look like the plant will keep open because apparently they're only going to get enough to pay the employees what they're owed, but at least they'll get that much which might help them get through Christmas. I heard the Merrill Lynch CEO, which Merrill Lynch was bought out by BOA, is still going to get his multi-million dollar bonus which he says he still deserves. Yeah, right! I wonder if he'll remember to thank US! Annie
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