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| From © WNEM TV |
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Committee Scrutinizes Delphi Bankruptcy Impact
House Subcommittee Hearing Called By Rep. Dale Kildee |
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December 2, 2009 |
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Click here to view video: http://www.wnem.com/video/21786481/index.html
WASHINGTON -- A congressional committee criticized Delphi’s pension termination plan Wednesday during a subcommittee hearing.
The Subcommittee on Health, Employment, Labor and Pensions held the meeting at the urging of Rep. Dale Kildee.
The auto supplier was blasted for abandoning its pension obligations and turning them over to the government, which cut their benefits.
Kildee said the meeting will bring important information on the issue to light.
"In my congressional district alone, more than 11,000 workers and retirees have been hurt by Delphi's bankruptcy, causing financial strain on too many of our hard working families," Kildee said. "I have long called for a congressional hearing on this matter and I am pleased that those calls have been heard and answered by this subcommittee."
The house committee heard from members of Congress, Delphi retirees, and a pension expert.
Many of those who testified said that salaried retirees were basically discriminated against.
They also said hourly retirees' pensions were propped up by the United Auto Workers union and General Motors.
Delphi said it regrets the decision to terminate pensions, but had no other choice in order to exit bankruptcy.
After spinning off from parent General Motors, the newly renamed Delphi soon ran into financial problems leading to bankruptcy; after failed deals with private equity bidders, General Motors agreed to take back some Delphi facilities including the Saginaw-based steering business that was then renamed Nexteer.
The company could still be sold to an outside company. |
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