Delphi Retirees Are Among the Human Victims of the Auto Bailout

As President Barack Obama takes to the stump and touts his auto bailout as a big success that saved the auto industry, America and civilization itself, it will be important to keep in mind all of the bailout's human victims. These of course include American taxpayers, who stand to lose somewhere between $20 and $30 billion on their GM "investment" alone. Then there are the secured creditors of Chrysler who got back 29 cents on the dollar to UAW’s 40 cents, even though the creditors deserved priority since their loans were backed by actual assets. These creditors, btw, included not Wall Street fat cats, but middle-class folks like teachers whose pension money was invested in Chrysler bonds.

But the other group that got royally screwed but has not received as much attention is the salaried retirees of Delphi, a GM supplier. When the Obama administration commandeered the bankruptcy process, it invited GM and UAW representatives to the negotiating table. But it left out Delphi’s salaried retirees. The upshot was that the UAW retirees got their full pension and health care benefits. But the benefits of 21,000 Delphi retirees – who had often worked right next to their UAW peers – were determined as per a Pension Benefit Guaranty Corporation (PBGC) formula. Hence, some of them lost up to 70 percent of their pensions and all of their life and health insurance. Bruce Gump, a representative of the Delphi Retirees Association, testified before Congress last year that the Treasury could have covered 93 percent of the benefits of all employees for the same amount that it spent on full union benefits.

The association sued the administration, but to add insult to injury, the PGBC has been doing everything it can to help the Obama administration avoid embarrassing revelations about what exactly transpired behind the scene during the bankruptcy process. How else to explain its foot dragging in turning over documents that the Delphi retirees have been demanding as part of their discovery process? The agency has been claiming that the documents being requested were so numerous that it needed time to put them together. That was two years ago.

So blatant is its procrastination that a fed up Detroit federal magistrate today granted Delphi retiree’s a “Motion to Compel” discovery, requiring PBGC to turnover the requested documents within 90 days. If it doesn’t, it could well be held in contempt.

What all of this shows is that some workers are more equal than others in Obama Land. If Rick Santorum, who is positioning himself as the blue-collar conservative candidate, is looking for reasons to  “throw up,” this would be a good one. May be Santorum should do a public barfing every time President Obama touts his bailout as a smash success?

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  • Brandon||

    Obama sucks.

  • Loser||

    Win. I mean lose.

  • Almanian||

    Heh heh. Many of us in Teh Auto Industree know well of the good, stiff fucking administered to the salaried Delphi retirees. Ugly and the definition of "unequal application".

    They comment a lot in the Detroit papers in articles related to GM and the UAW.

    If I were GM/the UAW, I'd become concerned if the DelphiSals adopt the warcry, "WOLVERINES!!"

  • Father Jack||

    Episode 1,452,970,001 of Obama=Fail.
    Feck Barry O! Drink! Arse! Girls!

  • Almanian||

    The agency has been claiming that the documents being requested were so numerous that it needed time to put them together. That was two years ago.

    Man, that rope-a-dope shit NEVER works when we go through discovery in pvt industry! Damn - how does the gummint get away with that?

    Two years - Luxury!

  • Texan||

    Should Gingrich drop out?

  • Brandon||

    No. Shut the fuck up.

  • Sir Thomas Smith||

    The fourth sort or classe amongest us, is of those which the olde Romans called capite censij proletary or operœ, day labourers, poore husbandmen, yea marchantes or retailers which have no free lande, copiholders, all artificers, as Taylers, Shoomakers, Carpenters, Brickemakers, Bricklayers, Masons, &c. These have no voice nor authoritie in our common wealth, and no account is made of them but onelie to be ruled, not to rule other[.]

  • Paul||

    poore husbandmen

    Sing it, sister.

  • ||

    Obama and the unions fucked over even more people? Wow, no one could have seen that coming. No one, I tell you.

  • Tman||

    BUT HE HAD TO FUCK THEM TO SAVE THEM!!!!

  • Barack Obama||

    Let me be perfectly clear; I work in mysterious ways.

  • Barack Obama||

    And Delphi Retirees, you have some Santorum running down your leg.

  • Liberty||

    Ms. Dalmia's is a talented writer.

    It's not as easy as most make it look to scream "UNIOOOOOOOONS! GM!" and then pull out one's hair and make faces week and after week, and yet, she finds a way.

  • Barack Obama||

    Thank you for missing the point. I'm sure I'll be able to count on your vote this November.

  • MJ||

    "The upshot was that the UAW retirees got their full pension and health care benefits. But the benefits of 21,000 Delphi retirees – who had often worked right next to their UAW peers – were determined as per a Pension Benefit Guaranty Corporation (PBGC) formula."

    Salaried guys are management, and more importantly they are not union and did not properly bribe the Democrat party and the Obama administartion.

    It is not surpising given the premises of Big Labor ethics.

  • Teenage Girl||

    btw?

  • ||

    A flying fuck -- given, it was not.

  • Suki||

    But the other group that got royally screwed but has not received as much attention is the salaried retirees of Delphi, a GM supplier.
    It got national attention on the Rush Limbaugh show one full day before this article was posted, while Reason was busy picking on him for saying that the government should not be able to force Churches to pay for birth control.

  • Paul||

    We had to destroy the word "Slut" so we could save it.

  • DRM||

    Well? When have socialists ever shown any sympathy for kulaks?

  • ||

    Who in their right mind would ever want to buy GM or Chrysler, EVA AGAIN?

  • ||

    Unionism, in and of itself, is evil.

    If we all had a nickel for every time some bloke said something like, "well, in the beginning, the unions were good and they were needed" before asserting that they now have gotten out of hand, we all would be very rich.

    I have always had a problem with this warped perspective as history says otherwise. Unions and those who championed unions and those who ran unions were thuggish collectivists, through and through. Often they were violent and sometimes murderous.

  • cynical||

    Do people say that? I mean, I can see saying that they were the lesser evil until the law of diminishing returns kicked in.

  • Gerholdt||

    What part of placing the ownership of the means of production in the hands of the workers did you fail to comprehend?

  • Team Blue Fag||

    why y'all gotta burst my bubble like that?

  • IceTrey||

    Don't forget the dealers who lost their franchises.

  • ||

    I'm not sure it is a good argument that Obama is a jerk for not having U.S. taxpayers include ever more people in the auto bailouts.

  • ||

    That isn't the point; the point is that the distribution of the bailout funds was based on politics and blatant favoritism.

  • Always On Watch||

    Linked at my site and at THE ASTUTE BLOGGERS

  • UAW Thug||

    See, now this wouldn't happen to those poor working folks if they did the right thing and join a union.

  • ||

    Well you know how it goes man, the rich get richer....

    www.Done-Anon.tk

  • ||

    Quoting ..."The upshot was that the UAW retirees got their full pension and health care benefits. But the benefits of 21,000 Delphi retirees – who had often worked right next to their UAW peers – were determined as per a Pension Benefit Guaranty Corporation (PBGC) formula. "

    Interesting how you've got this ALL WRONG. It's NOT that the Delphi salaried retirees received LESS than exactly what they were entitled to, just like previous Steel and Airline workers in previously terminated Pension Plans. What REALLY happened is that Obama used his power and influence to favor a strong voter base, the UAW, and turn 100 years of bankruptcy law and history on it's ear to favor them.

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