[tcrlaf]

This is where the fallacy of the 60-day notice law, and a half-told story come together.

From the Chicago Sun-Times:

“Republic Windows & Doors, once an emblem of corporate expansion on Goose Island, said it must shut down Friday because of inability to get financing.

It said more than 200 jobs will be eliminated. Amy Zimmerman, vice president of sales and marketing at Republic, said the shutdown was forced by Bank of America Corp., which withdrew a credit line because of the manufacturer’s declining sales.”

http://www.suntimes.com/business/1313535,CST-FIN-republic04.article

They CANNOT pay 60 days of wages because THEY HAVE NO CASH, NO CREDIT LINE.

The employees will have to wait in the bankruptcy court line, like all the other unsecured creditors.

You can’t squeeze blood from a turnip, folks. And the Union was intransigent, instead of trying to work with the company.

[tcrlaf]

Also to note, this has been going on for a couple of years now, as the company is under new ownership after “Severe mismanagement by the former owners.

And this quote from the sun-times is TELLING:

“Union leaders also said Bank of America was barring Republic from paying workers for the 60-day period or for accrued vacations. “It’s shameless that this bank, after getting a federal bailout, is throwing them out penniless,” said union organizer Leah Fried.”

[An Old Man]

"The employees will have to wait in the bankruptcy court line, like all the other unsecured creditors."

There is a ray of hope shining from this cloud of doom!

The employees will be placed near the head of the line for payment in full of what is owed them.

The order of payment is;

1. The bankruptcy trustee

2. The Lawyers

3. The employees holding valid claims for wages

They are probably going to miss out on the severance pay though unless it was incorporated into the latest bankruptcy law.

Next everyone else gets in line in the order in which they file their claims.

[Hildy]

Banks are looking at the FUTURE of companies based on their current numbers and deciding whether to lend. I'm not sure if that's completely right. I have a friend with a medium size business in CA. He has NEVER missed a payment on both his business and home. He is now being told he must come up with a large chunk of money because his business, of course like everyone else, is down something like 30-40% this year and they want to recoup whatever they can get now before, the assume, he goes out of business.

It's insane out there, folks. There has got to be a better way.