NLRB: Republic Windows Owners Violated Federal Law

When 250 members of United Electrical Workers Local 1110 staged a dramatic sit-in at the shuttered Republic Windows and Doors factory late last year, union advocates asserted that the owners violated federal labor law by not giving their workers 60 days compensation and any unused vacation, as required under the federal WARN (Worker Adjustment and Retraining Notification) Act. Turns out, the unionists were right.

According to the Chi Town Daily News, the National Labor Relations Board's regional director ruled yesterday that the decision by Republic Windows owner Richard Gillman to relocate his company to Iowa -- thus avoiding its collective bargaining obligations with the UE -- was illegal. As punishment, the federal agency will seek to fine Republic an amount equalling two weeks of pay for roughly 200 members of Local 1110 who lost their jobs when the plant unexpectedly closed.

But garnishing the penalty won't necessarily be easy, as reporter Fernando Diaz explains: 

The issue is complicated by the fact that Republic is operating under the protection of the U.S. Bankruptcy Court.

Because of that, the NLRB will seek to negotiate with Republic rather than levying a fine, says Terry Morgan, a deputy assistant general counsel with the agency. Absent an agreement, the agency would have to get in line behind other creditors, which would likely diminish the amount Republic pays.

Morgan also tells Diaz that if no settlement can be reached, an administrative judge could impose stiffer penalties, including seizing Gillman's assets.  Whatever is left of them, that is.  

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