Delphi
DELPHI: Salaried retirees gain key support in fight against pension cuts
Delphi Corp. salaried retirees and employees have gained a vote of support from some members of the U.S. House of Representatives.
A hearing on Delphi workers’ pensions was held Wednesday by the House Education and Labor Committee’s subcommittee on Health, Employment, Labor and Pensions. Rep. Chris Lee, R-Clarence, said the hearing has generated overwhelming support for the workers and retirees to keep the pensions issue moving forward.
“There is a lot of bipartisan support to get something done and help these people who, through no fault of their own, have been left out in the cold,” Lee said.
In July, the pensions of thousands of Delphi workers and retirees were turned over to the federal Pension Benefit Guaranty Corp., a move that could lead to significant cuts, some as high as 70 percent. The move was a result of General Motors and Delphi being in bankruptcy, each unable to assume the pensions. According to the PBGC, there are about 20,203 workers and retirees whose pensions are covered by the agency.
In April, salaried retirees lost their health care and insurance benefits, which Delphi said at the time would save their company more than $70 million a year.
Wednesday’s hearing brought up two main issues, Lee said. The first is to find a way to help the workers and retirees, but the second issue is to make sure this mistake won’t happen again, Lee said.
“We’ve had multiple ideas,” he said. “We want to make sure this doesn’t happen again.”
Two members of the Delphi Salaried Retiree Association testified at Wednesday’s hearing. The DSRA was formed earlier this year to represent salaried retirees, springing up quickly when Delphi first announced it was cutting the retirees’ health care and insurance. Both Bruce Gump and Charles Cunningham said salaried retirees wanted fair and equal treatment with the rest of the auto industry. Hourly workers and retirees will have their full pensions covered by the PBGC and GM.
“The average salaried retiree will lose about $300,000 over his or her life,” Gump testified.
Both lawmakers and retirees at the hearing criticized the Obama administration for not releasing documents detailing the role the “auto task force” played in what they call the uneven treatment of Delphi retiree pensions. Congressional representatives invited Ron Bloom, the auto task force leader, but he did not respond. Lee said he has not received a response to a letter he sent to the U.S. Treasury Department requesting all documentation on how the decision was reached to move the salaried pensions to the PBGC. Lee was one of 22 congressional members who called for the public release of the documents in June.
Delphi spun off from GM as a separate company in 1999, but found itself in Chapter 11 bankruptcy by 2005, remaining there for four years. Delphi exited from bankruptcy in October, selling back its Lockport plant to GM.
Contact reporter Joe Olenick at 439-9222, ext. 6241.
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