Monday, March 07, 2011

Geithner's "Delphi Maneuver" Questioned

This should be fun to watch.

Republican Reps. Mike Turner of Ohio and Dan Burton of Indiana are asking House Oversight Committee Chairman Darrell Issa, California Republican, to dig into the Obama administration’s decision to cut more than 20,000 private-sector workers’ pensions and eliminate their health and life insurance plans during the General Motors (GM) bailout in 2009.

....What Turner and Burton are saying happened during the GM bailout is that Treasury Secretary Timothy Geithner decided to cut pensions for salaried non-union employees at Delphi, a GM spinoff, to expedite GM’s emergence from bankruptcy. The problem with that, according to the congressmen, is that Geithner decided to fully fund the pensions of union workers involved in the process – including workers associated with United Auto Workers, Steelworkers and the IUE-CWA.

And a lot of Delco/Delphi Oak Creek retirees took it in the chops on that move.

1 comment:

neomom said...

Where are all the usual suspects talking about the government as gestapo and dictator screwing people out of their benefits?

Or is it just union workers that get that special treatment?