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Tell Congress: Wells Fargo is a Roadblock to Recovery
$25 billion bailout hoarded; workers threatened with job loss!
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Desperate for cash, Wells Fargo got $25 billion from US taxpayers to keep it open. The deal was simple: use our money to stay in business and help other businesses through the recession, too. Jobs would be saved and we'd all be on the road to economic recovery.
Instead, Wells Fargo has cut the lifeline of Quad City Die Casting in Moline, IL, a viable, 60 year old family-run business. One hundred good jobs are on the line. |
In some 20 cities across the U.S. on June 23, UE members, JwJ activists, and allies took action at branch offices of banking giant Wells Fargo, and its subsidiary Wachovia, from Boston to Los Angeles.
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Wells Fargo was also the bank in the recently resolved bankruptcy case of US suitmaker Hartmarx.
Tell the House and Senate Banking Committees that Wells Fargo should help end the recession -- not create more unemployment by forcing viable companies to close.
| Sample Letter for Campaign |
Subject: Bailed-out Wells Fargo is cutting credit to viable companies
Dear [ Decision Maker ] ,
Wells Fargo bank is not using its $25 billion taxpayer bailout as Congress intended.
Instead of helping workers and businesses make it through the recession, Wells Fargo has put good jobs at risk by cutting lines of credit to viable companies.
In Moline, Illinois, Quad City Die Casting, a 60 year old family-run business faces shutdown because Wells Fargo withdrew financing. One hundred jobs are at stake. Yet, the business is viable and is exactly the type of firm federal bailout money was meant to help.
Workers at Quad City are doing everything possible to save their jobs. I'm adding my voice to theirs in asking you to investigate how Wells Fargo has been using the bailout money and how much of it has been used as Congress intended.
Wells Fargo should not be a roadblock on our path to economic recovery.
Sincerely,
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Campaign Launched:
June 29, 2009
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Quad City Die Casting has been in business in Moline, Illinois for 60 years. Locally owned by the Debrey family, the company is a quality leader in their industry. They employ over 100 people, 80 of whom are union workers and members of UE Local 1174. The average union wage in the factory is $14.50, the most senior worker has been at the company for 35 years.
l They make aluminum die casted (molded) products like escalator stairs, parts for farm equipment and motor parts for recreational vehicles. Some of their customers include Case New Holland and Kawasaki Motors.
l On May 11, 2009 workers learned that Wells Fargo Bank had decided to no longer offer financing and that the business would be closing in July. As a result of the loss of financing, the business was forced to enter into an Assignment for the Benefit of the Creditors (a do it yourself foreclosure) and the assets have been turned over to a trustee who is responsible to the creditors, the primary creditor being Wells Fargo.
l Workers have been told that they would not receive the vacation pay they have earned unless money remains after all secured debts are paid.
l The business has a viable future if they receive financing. The company was turning a profit in the fall of 2008, but then sales dropped due to the downturn in the economy. They have not lost any customers – they simply have a lower volume of parts being ordered. With financing they can survive this financial recession and continue to employ over 100 people.
l The UE is seeking a commitment from Wells Fargo to keep the company operating while a buyer is found.
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