Obama backs Republic worker demands

CHICAGO, Dec. 7 (UPI) -- President-elect Barack Obama Sunday said he supports demands by laid off workers at a Chicago manufacturing company for severance pay and other benefits.

An estimated 200 employees at Republic Windows & Doors were laid off Friday, and many of them have taken turns camping out at the factory since then, refusing to leave without their pay. The sit-in came after company officials didn't show up at negotiations brokered by U.S. Rep. Luis Gutierrez, D-Ill., between the company and its bank, the Chicago Sun-Times reported.

Republic said it shut down after Bank of America cut its credit line. Union officials said the company failed to give 60 days' notice required by federal law and that the bank barred the company from paying for the 60-day period or for vacation time earned by employees.

Bank of America said it was not responsible for Republic's obligations.

At a news conference in Chicago Sunday, Obama said he thinks the workers "are absolutely right."

"What's happening to them is reflective of what's happening across this economy," he said.

Obama said credit is contracting as a result of "a financial system that is shaky" and businesses have cut back on plants, equipment and workforces. He said any economic recovery plan should help businesses meet payrolls.

The Rev. Jesse Jackson Sr. and Rep. Jan Schakowsky, D-Ill., met with the workers Sunday to try to arrange a compromise between the workers and the company, WMAQ-TV reported.