Workers at Des Plaines suitmaker jubilant for victory over liquidation
The din of cutting machines, presses and other equipment at Hart Schaffner & Marx's Des Plaines factory was silenced for a few hours Monday, replaced by the thunderous clapping and chanting of workers.
The sea of jubilant faces clad in orange and purple T-shirts holding placards reading "Standing Together, Saving Jobs" repeated the mantra that became the rallying cry during the 2006 Chicago immigration reform marches: "Si, se puede" or "Yes, it can be done."
The 122-year-old Chicago-based suitmaker, Hartmarx Corp., staved off liquidation by Wells Fargo & Co. after a U.S. Bankruptcy Court approved its sale last Friday to British private-equity firm Emerisque Brands U.K.
Suitcutter Boris Vucinic, 67, of Chicago, who celebrates 51 years with the company in July, said though he may retire in a couple of years, "I'm glad that the other people got their jobs."
Spouting campaign-like speeches, lawmakers and union leaders praised the efforts of workers prompting rambunctious cheers from the crowd.
"The workers have won this fight," said Noel Beasley, executive vice president and manager of Workers United, speaking Monday morning to hundreds of Hartmarx workers in Des Plaines.
Workers United represents roughly 1,000 Hartmarx workers in Illinois.
"What began a few months ago was a familiar story in this country," Beasley said. "It was a familiar story of factories closing in North America and companies walking away with millions of dollars. This story had a different ending today."
Hartmarx Corp. operates manufacturing plants in Des Plaines and Rock Island, as well as a warehouse in Indiana, and has facilities employing nearly 4,000 people nationwide.
With the Emerisque deal, the jobs of roughly 600 workers at the Des Plaines factory have been spared, at least for the immediate future.
"Now I don't have to worry about anything," said Jatin Patel, 29, who has worked in the factory for five years, piecing suits together by computer. Patel added he now can hold on to the home he bought in Des Plaines with a loan from Wells Fargo.
"I have 25 years to go for my mortgage," Patel said.
Several workers were optimistic the company would fare better under new ownership and management.
Union leaders also thanked state officials and Washington, D.C., lawmakers for pressuring Wells Fargo to accept the Emerisque deal and save Hartmarx from liquidation, citing the bank's receipt of $25 billion in federal aid.
Illinois Gov. Pat Quinn in a letter congratulated Hartmarx workers for their victory, as did state Treasurer Alexi Giannoulias in person at the plant Monday.
Giannoulias last month threatened to take away Wells Fargo's management of the state's $8 billion investment portfolio, if it didn't support the deal.
"Today is a great day for the workers at Hartmarx, for the people of the state of Illinois, for our nation," Giannoulias said. "The fact that all of you are willing to fight the way you have, makes all of you heroes."
Congresswoman Jan Schakowsky, an Evanston Democrat representing the 9th Congressional District, which includes portions of Des Plaines and Rosemont, shared her own family's history with the suitmaker.
Schakowsky said like the majority of Hartmarx workers today who are immigrants, her Russian grandmother and great aunt came to America, worked for the suitmaker decades ago and fought for workers rights.
"It's was the beginning of the union and it was the women who led the way," she said. "Clearly, you have come from all parts of the world to make a good life in the United States. You saved your jobs. It was because you stood up and fought."
The maker of high-end suits, most notably worn by President Barack Obama during his inauguration, filed for Chapter 11 bankruptcy protection on Jan. 23, owing more than $114 million to creditors, including its primary lender, Wells Fargo.
London-based Emerisque and its partner, SKNL North America BV, will seal the deal in a week's time to purchase Hartmarx for $128.4 million, said Bruce Raynor, president of Workers United.
As part of the sale, Emerisque will assume $33.5 million of Hartmarx's debt, according to court documents. The firm said it plans to keep many of Hartmarx's 4,000 workers.
"Every Hart Schaffner & Marx suit and pant will be made in a USA factory," Raynor said. "We are not going to give up one penny of our pay to keep these jobs in America. You stood up for yourselves."