Stealing From Workers to Bail Out Banks

[Alan_OldStudent]

A factory in Chicago, family-owned Republic Windows & Doors, closed on Friday after giving its workers a 3-day notice instead of the 60-day notice required by law. It owes its workers somewhere around an average of $3500 per worker. We are talking of about 200 workers.

The enterprise closed because Bank of America rescinded its line of credit.

The workers began a peaceful sit-in this weekend and vow to stay put until negotiations begin about honoring the legal and moral obligation to pay those workers. Turns out that the factory says the Bank of America won't let them pay their workers. A union spokesperson said:
"We're just shocked that Bank of America, after receiving $25 billion in bailout money, not only do they refuse to extend credit to companies but, to add insult to injury, they don't allow these companies to fulfill their legal obligations to their workers,"

Personally, I just don't see how cheating workers out of wages and using workers' tax dollars to bail out failing capitalist enterprises gets to be called socialism.

However, my sense of outrage at Bank of America's greed and arrogance is not matched by surprise.

The Chicago Tribune apparently reports that the Bank of America's position is that it's not responsible for Republic's financial obligations to its workers. Well, Bank of America seems to feel entitled to those workers' tax dollars to bail them out of a financial crisis of their own making.

The Reuter's account, which I used for a source, can be read by clicking here (http://www.reuters.com/article/marketsNews/idUSN0745696920081207).

I'll not be able to respond too fully to comments until Wednesday, owing to work.

Regards,

Alan

[Andy62]

The world is not fair and all things are not what they seem. My father lost his business during the depression and it caused tremendous hardship on our family when I was a child. A lot of innocent people are unfortunately going to be hurt during this crisis and 2009 is going to be terrible beyond belief. What seems obvious may not be the case. When I was in the commercial real estate construction loan business I had a loan of several million dollars to a developer that checked out through all of the credit and personal reference channels. One of the sub contractors on the job was a young man who had experience in the carpeting business and wanted to start his own business but had no experience is the business and legal end of the business [ as they say in the business 'fresh meat' ] The main developer contracted with him to deliver custom made carpeting for the whole building. When the carpet was delivered the main developer had him install it and then refused to pay him. The carpeting was exactly as per specifications,but the main developer knew that the young subcontractor didn't have the resources to defend himself in court. I set up a lunch meeting with the main developer and his wife and tried to get a compromise and told them he was just a young guy with a family and was trying to make it and couldn't we work something out. Both the developer and his wife laughed at me and said it was "just a game" and they didn't care. I couldn't disburse directly to the young subcontractor because my loan was to the main developer and to go around his authorization would have been a violation of the covenants in the loan documents and of real estate law. It is a tough world and with our world being as litigious and as bureaucratic as it is some people learn how to beat the system over and over. Add to that my experience in the Intelligence Corps and you will see how sometimes I look at things differently than people who have not shared those experiences. If you have not been the victim of "business nut cutting" strategies watch out because a lot of people are going to go though it in the next few years.

[MikeNY]

Wan't it Bank of America that got $25 billion Dollars in bailout Money and used it for bonuses for the Executives? Some of the banks are using the bailout money to buy other banks too. There needs to be strings attached if they are not using the liquidty as the Government thought they need to repay the Bailout Money immediatly and they can go bankrupt.

Most businesses are too heavy in the Personnnel Department, too many Vice President all they do is satisfy Government regulations such as Affirmitive Action. Let a computer do the hiring and make it race neutral. One Executive once told me his Company paid thrity-nine cents of each dollor of income on Affirmative Action. Affirmative Action has been great for loads of White Vice Presidents and all the Personnel Department of every business; plus AA added layers of deadwood to every company all all levels from the shop floor to the boardroom. Enforce the Civil Rights Laws equaly for all Americans and we do not need this cancerous Industry within Industry. Can a nation in recession and possibly facing a Depression if the Auto Industry dies afford silly Social Engineering that is really racism mascurading as fairness.

[MikeNY]

PS cut top heavy Management! We should outsorce management to Europeans and Japanese Managers that earn much less and are more effective!

The upside down Pyramid of US Business are not efficent, we need few leaders and Chiefs and more Indians!

[MikeNY]

Here a re a few quotes that will surprise folks.

Time & Money
“The average annual cost of regulation, paperwork and tax compliance for companies with fewer than 500 employees is about $5,000 per employee per year. The average small business owner spends between 7% and 25% of his or her time handling employee-related paperwork.”

- U.S. Small Business Administration

Reduce Risk
“Wrongful Discharge, Sexual Harassment, Negligent Hire, Disparate Treatment, HIPPA Compliance, and more. Employees win settlements over 70 percent of the time with an average award of $500,000. This doesn’t include 270,000 laws and regulations mandated by the state and federal government that if found in non-compliance could lead to fines and worse. Let us lessen the burden by implementing best practices and our knowledge to avoid these obstacles and fears from your business.

here is the source of the quotes: it is a business that was quoting sources. http://www.personnel-department.com/why_peo.htm