Bank of America Extends Credit to Factory

Bank of America agreed today to extend a line of credit to a Chicago company whose workers have been hunkered down in the factory for five days since it abruptly shut down and they were fired without the 60-days pay or notice federal law requires.

Picketers march in support of workers on the fourth day of a sit-in at the Republic Windows and...

Picketers march in support of workers on the fourth day of a sit-in at the Republic Windows and Doors factory Monday, Dec. 8, 2008 in Chicago. The band of 200 workers demanding severance and vacation pay have become a national symbol for the millions of laid off workers across the country after the company abruptly fired them last week prompting them to occupy their former workplace.

(M. Spencer Green/AP Photo )

The Chicago Republic Windows & Doors Factory closed when it was unable to receive financing from Bank of America, company officials said.

But today, the bank agreed to give Republic "a limited amount of additional loans" to provide workers with their severance packages and earned benefits, in an attempt to resolve the grievances of the more than 200 angry workers who staged the protest in the factory.

The union workers believed they were victims of a bungled bailout and that Bank of America, which received $25 billion in the federal rescue package, is what stands between them and their paychecks. Workers carried signs outside the factory Monday, attacking the bank, saying: "You get bailout, we get sold out."

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"You start thinking about payments, your bills, your mortgage, your rent," said Vicente Rangel, a 34-year-old maintenance technician who was laid off after 15 years working for the company.

Republic's sales of windows sank along with the housing market. But the union quite literally cast the bank as the "rat," blaming it for not extending the company's credit line.

"Frankly, it's shameful that a bank that got $25 billion in bailout money turns around and shuts down a factory by cutting off their credit and then refuses that money be spent on people's rightfully earned benefits," said Leah Fried, a union organizer for United Electrical Workers. "We're going to hold Bank of America accountable for what they are doing here."

In a statement Monday, Bank of America said that, as a lender, it cannot tell the company "how to manage its affairs and what obligations should be paid."

Republic has said the bank displayed "unwillingness" to continue funding the troubled company, which the bank made moves to correct today. The dispute surrounding Republic's laid-off workers is generating sympathy from President-elect Barack Obama.