Federal labor laws require 60 days� notice in case of plant closings and large layoffs. Republic owners said it needed to shut down the factory because their main credit lender Bank of America had cut off it�s expected financing. Bank of America recently received a $25 billion bailout package from the federal government but decided it wouldn�t go to keep manufacturing operations running.
Anger grew among the workers after they found out that Republic owners formed a new company and bought a new plant in Iowa, where apparently labor costs are less expensive. Meanwhile the workers vowed to fight and they occupied the Chicago factory until they were granted assurances they would receive the money owed to them.
Finally after three days and close to 20 hours of negotiations a deal was made.