Bailout Bank Behaving Badly? Factory Workers Protest Against Bank of America

Union workers are entering their fourth day of peacefully occupying a closed factory in Illinois after their employer ceased operations on three days’ notice.  The shut down came after Republic Windows & Doors lost the line of credit from its primary lender, Bank of America.

The Associated Press reported that employees of Republic Windows & Doors were given notice on Tuesday that the factory would close on Friday even though the law requires 60 days before such action can be taken. 

Company officials say the factory was forced to close because Bank of America canceled its line of credit.  According to the Chicago Tribune, BOA cited a downturn in the company’s business for the cancelation. 

Union representatives allege that BOA will not allow Republic to pay workers, BOA through a statement denied responsibility for any payments Republic owed its employees. 

I think there is more to this story than what has been reported so far.  It is terrible for the workers, but BOA is well within its rights to cancel a line of credit.  Management had to know the company was in serious trouble if it could only provide three days’ notice of a shutdown.  Remaining details aside, BOA is a recent multi-billion dollar bailout beneficiary and everyone wants to know: If BOA has so much money, why did it have to shut down a manufacturing plant with 300 employees?   

Having this play out in the national media just exacerbates Main Street’s growing disdain for Wall Street. 

Maybe Treasury should take a queue from the Big 3 CEOs and stage a massive PR blitz of humility in an effort to close the ever widening rift between Main Street and Wall Street.  After all, Main Street is footing the bill for the bailout and they roll out the red carpet for every other major financier.  Just a thought… 

Governor Rod Blagojevich, ordered Illinois’ state agencies not to do business with Bank of America!