Did Obama slash non-union worker benefits at GM?
posted at 12:30 pm on June 23, 2011 by Jazz Shaw
Back when General Motors became Government Motors, which I’m sure some of our older readers can recall fondly, the Obama administration assured us all that they would not be “intervening in the day-to-day management” of the company. And that’s certainly true… unless you count meddling with the pension checks of workers to balance the books more quickly, “meddling.” Oh, for bonus points, there’s a union connection.
These messages reveal that Treasury officials were involved in decision-making that led to more than 20,000 non-union workers losing their pensions.
Republican Reps. Dan Burton and Mike Turner say that during the GM bailout, 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.
At a Wednesday hearing, the House Oversight Committee’s Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending started pushing the Treasury Department for answers on the effects of the bailout and on how much of a role the department played in picking winners and losers.
Maybe I’m just suspicious by nature, but that certainly sounds like being involved in the day to day operations of the company. And even if that era has drawn mostly to a close, it doesn’t mean that meddling of another sort won’t keep taking place. The Democrats are already using GM as a poster child in a new series of advertisements, prompting some of the “unexpectedly” ungrateful folks at the auto giant to proclaim that they would really rather not be a Democratic talking point for the next eighteen months.
But back to the original story. I’m sure it was more a matter of administrative convenience, but if it was only “salaried non-union employees” who got their pensions cut, what sort of a message does that send inside the factory walls?
“Gee… nice pension ya got there. Be a shame if anything happened to it just because you didn’t belong to our union…”
Blowback
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Still not buying GM.
Blame Obama.
upinak on June 23, 2011 at 12:31 PM
How come we’re just hearing about this now? Where were the 20,000 mouths when this happened?
Knucklehead on June 23, 2011 at 12:33 PM
Yep Government Motors.
BroncosRock on June 23, 2011 at 12:34 PM
I’m sure eventually Obama will be coming for my pension also.
Tommy_G on June 23, 2011 at 12:35 PM
Cutting Pensions are evil..ask Wisconsin.
Unless, of course, you are not a wing of the Democrat Party. Then all is well.
Hypocrites, through and through.
neoavatara on June 23, 2011 at 12:36 PM
Since Delphi’s factories are located in Ohio, this doesn’t bode well for Obama’s chance to win the state in 2008.
jon1979 on June 23, 2011 at 12:36 PM
A federal judge has ruled that Delphi retirees can proceed toward trial. The white-collar workers filed a class action suit against the Pension Benefit Guaranty Corp., claiming the government insurer violated the workers’ constitutional rights by terminating their pension plan. The judge in the case refused to dismiss the lawsuit, allowing the case to go to trial. Bruce Gump, a retiree from Warren, Ohio, traveled to the hearing with roughly 50 other retirees. He said it “was a very good day.
The retirees filed a lawsuit claiming they were denied equal protection when the white-collar workers’ pension was taken over by the government insurer. Delphi is a former subsidiary of General Motors. General Motors struggled through bankruptcy for four years. Delphi was seeking to liquidate its assets during the bankruptcy proceedings and could not meet its pension obligations. Pension Guaranty agreed to take over the pension plan for Delphi’s white-collar workers in April 2009.
The lawsuit alleges that the Delphi pension plan was 85 percent funded and was therefore solvent. The retirees contend that audits conducted by 2 independent financial companies show the pension plan was not underfunded when it was taken over by Pension Guaranty. The non-union retirees are to receive reduced benefits through Pension Guaranty.
During General Motors’ bankruptcy proceedings President Obama’s auto task force authorized $4.3 billion to supplement the pensions for retired union workers. The union workers therefore would receive their full pension. There was no similar supplement offered for the white-collar retiree pension plan.
The salaried, non-union retirees claim that they have a constitutional right to equal protection. United States District Court Judge Arthur Tarnow refused to dismiss the case. The trial will determine whether the white-collar retirees have the right to be treated equally to the union retirees in the government’s rescue of General Motors.
Now that the plaintiffs’ case has survived a motion to dismiss, let’s proceed to discovery.
Subpoenas to GM, anyone?
Wethal on June 23, 2011 at 12:36 PM
When I can afford to buy a new car, I will be avoiding anything built with union labor.
Count to 10 on June 23, 2011 at 12:37 PM
Time to cut Osama Obama’s pension! And his benefits, such as the extravagant vacations the Mrs. takes, all the jetting-about on campaigning….
Oh, and he should take a 100% pay cut, too. And lose his freekin’ job. It’s time for the Traitor-in-Chief to learn first-hand about the damage he has done to us normal working folks.
MrScribbler on June 23, 2011 at 12:39 PM
This is why the government should keep its PUBLIC hands off our PRIVATES!
(This sentiment applies to the healthcare debate, too.)
parteagirl on June 23, 2011 at 12:40 PM
I won’t even consider buying a GM car. I won’t be party to the corruption.
chalons on June 23, 2011 at 12:41 PM
Out hiring a lawyer. And the MSM would not let story like this get into the news. They wanted the meme to be “Obama saves GM and Chrysler. Hard-working assembly line workers’ jobs and pensions saved. Evil fat cat bondholders take place behind them in bankrutpcy priority.”
(One major Chrysler bondholder was the Indiana State Employees Pension Fund, by the way. 29 cents on the dollar.)
Wethal on June 23, 2011 at 12:41 PM
Keep digging. This is impeachment gold.
faraway on June 23, 2011 at 12:43 PM
And had Bush done this…
Del Dolemonte on June 23, 2011 at 12:44 PM
Look for the union label…
Then run like hell!
pilamaye on June 23, 2011 at 12:45 PM
Now the TSA is unionizing. They’re joining the AFLCIO.
poorrichardsnews on June 23, 2011 at 12:46 PM
OT: Anyone see this?
Activists cry foul over FBI probe
Shy Guy on June 23, 2011 at 12:47 PM
Isn’t that despite the dact that the statute creating them prohibited unions? I thought this was a sticking point between the Dems and Bush, and the Dems caved.
But then an Obama executive order can override a statute (see Obamacare and abortion.)
Wethal on June 23, 2011 at 12:49 PM
Ford and Toyota execs are smiling and clinking their champagne glasses.
Skip GM, get yourself a Pony car.
Bishop on June 23, 2011 at 12:49 PM
1. The regime specifically directed that white collar pensions should be eliminated.
2. The regime went to court to deny the bondholders (primary creditors) their rights to collect their legal share of proceeds under bankruptcy.
3. The regime directed these private funds, as well as taxpayer dollars, into the union pension fund.
4. The unions then donated a portion of the funds received to the re-election campaigns of their political benefactors.
Classic political extortion.
Vashta.Nerada on June 23, 2011 at 12:50 PM
GM’s union people can go jump in a lake for all I care. I won’t support their crap by buying their products.
Find it elsewhere, because you won’t find it with me.
capejasmine on June 23, 2011 at 12:51 PM
Well that just about puts the final nail in the coffin. I will never buy a GM vehicle in this lifetime.
parke on June 23, 2011 at 12:51 PM
Where is the Union Card again, I wanna sign it NOW!
Sinner on June 23, 2011 at 12:52 PM
This would make a great ad:
(Close-up of an old man wearing a GM T-shirt sitting in a wheelchair, and Obama whispers in his ear): “Wouldn’t you like to join the United Auto Workers union?”
Old man (looking frightened): I’m not sure…
Obama: Well, we need to move forward!
(Camera zooms away, and Obama pushes the old man over a cliff).
Steve Z on June 23, 2011 at 12:53 PM
Do away with the TSA, they are worse than the USPS. Also, do away with the Dept. of Energy and 3/4 of the Dept of Education. Meanwhile Zero plays golf while the country burns!
rjoco1 on June 23, 2011 at 12:54 PM
unstinkingbelievable….
*shaking the head*
cmsinaz on June 23, 2011 at 12:54 PM
Now, how is this different from Fascism or Socialism?
Chip on June 23, 2011 at 12:55 PM
good question…
cmsinaz on June 23, 2011 at 12:55 PM
Always bought GM products and believed in their quality, deserved or not. Never again…even if they made all their victims whole…never again.
SKYFOX on June 23, 2011 at 12:55 PM
“the House Oversight Committee’s Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending”.
WTH is this and how do we get rid of it??
bullheadbob on June 23, 2011 at 12:56 PM
how bloody infuriating….of course the lsm propping up dear leader, this never made news….
cripe
cmsinaz on June 23, 2011 at 12:57 PM
“IF you know what’s good for you, you’d better be unionized!” – Obama /Union goons
On the one hand, there is that Card Check, on the other hand, they use this to punish others that are not their members.
What a way to win.
Sir Napsalot on June 23, 2011 at 12:58 PM
indeed…
outrage 24.7
cmsinaz on June 23, 2011 at 12:58 PM
Atlas Shrugged.
search4truth on June 23, 2011 at 1:01 PM
I give up.
Aviator on June 23, 2011 at 1:02 PM
Interesting. I thought maybe the union thugs had threatened them.
Knucklehead on June 23, 2011 at 1:03 PM
Didn’t the uninvolved administration decided who got to keep their dealerships and which debt and stock holders could afford not to get paid?
Cindy Munford on June 23, 2011 at 1:03 PM
THIS. The dollars that I spend voluntarily, not at gunpoint, will never be spent on Fords, Chryslers or GMs again.
search4truth on June 23, 2011 at 1:04 PM
Generally thats the function of the court, but in the case of GM, no friendly judges were available, so the WH just ignored law and hundreds of years of precedent.
Remarkable.
BobMbx on June 23, 2011 at 1:05 PM
No place to “park” this OT, but it concerns the political ploy of O’s releasing some of the Strategic Oil Reserves:
http://www.nationalreview.com/corner/270339/oil-seed-corn-victor-davis-hanson
This stunt is so transparent and so stupid.
onlineanalyst on June 23, 2011 at 1:05 PM
Let’s not forget the hundreds (thousands?) of dealerships that were cancelled by Obama’s henchmen. These dealerships were independently owned, and tens of thousands of people lost their jobs. This act, too, is one of the huge, audacious outrages of the obama regime.
karenhasfreedom on June 23, 2011 at 1:08 PM
From now on I’m only buying things made by non-unionized Chinese workers!
Dr. ZhivBlago on June 23, 2011 at 1:12 PM
They were all either standing knee deep in messiah drool or quivering in fear because you can no longer speak the truth about the first African-anti-American president without being labeled a racist.
Don L on June 23, 2011 at 1:12 PM
Didn’t buy GM even though I am a kid of union GM employee (now a retiree). I had purchased GM vehicles all of my until it became Gubmint Motors. Me and my wife purchased Dodge vehicles before it was bailed out/sold to Fiat. Next purchase will be Ford. They only took gubmint money to keep their credit division going.
Dr.Cwac.Cwac on June 23, 2011 at 1:13 PM
If you love America -don’t buy the union label!
Don L on June 23, 2011 at 1:14 PM
It’s most certainly not true. Obama “dictated” GM’s direction (as he told them what size cars they had to build, ordered the Chrysler/Fiat deal, screwed senior creditors, ordered Rick Wagoner to quit GM, appointed GM’s board and so on…).
Buy Danish on June 23, 2011 at 1:14 PM
Send him on a one-way trip to that Boeing plant in South Carolina, and let him ‘splain himself to those employees!
Steve Z on June 23, 2011 at 1:14 PM
There were a boatload of large, successful dealerships in the Houston Metro area that were forced to close. Except in Rep. Sheila Jackson Lee’s district.
The huge empty graveyards are infuriating. But, hey, they took care of the union jobs! Local economies, not so much.
Aren’t the dealerships suing, also? This discovery ought to help their case.
obladioblada on June 23, 2011 at 1:14 PM
Give up what?
Chip on June 23, 2011 at 1:15 PM
They went after Canadian dealerships also: http://www.theglobeandmail.com/report-on-business/judge-gives-go-ahead-to-lawsuit-by-former-gm-dealers/article1927276/
obladioblada on June 23, 2011 at 1:23 PM
Wouldn’t touch a new GovMo product.
“Look For The GovMo Label on your Escalade, Corvette or Volt……”
I can hear ‘em singin’ in the lucnhroom!
Tim_CA on June 23, 2011 at 1:46 PM
Now, how is this different from Fascism or Socialism?
Chip on June 23, 2011 at 12:55 PM
I give up.
Aviator on June 23, 2011 at 1:02 PM
Give up what?
Chip on June 23, 2011 at 1:15 PM
Midas on June 23, 2011 at 1:51 PM
There are so many empty and abandoned car dealerships in JAX, FL it is shocking. On the weekends we drive past half a dozen just to get to the grocery store. Depressing as hell. Long stretches of shuttered windows and boarded up bays.
The Kia lot is doing gang-busters – wonder why…….
Ris4victory on June 23, 2011 at 2:00 PM
Let’s not forget, the greedy UAW workers pensions were kept whole by little Bammie. When a company goes through a proper bankruptcy, pensions never survive the court proceedings. Even the greedy UAW executives were surprised and embarrassed by how they made out like bandits because of little Bammie’s interference.
This is just another reason that Government Motors ultimately will go bankrupt again, hopefully without government interference.
Buy Japanese, Korean and German cars made in the USA. Say NO to UAW greed.
slickwillie2001 on June 23, 2011 at 2:12 PM
Worth the time to read this entire article.
obladioblada on June 23, 2011 at 2:15 PM
Okay, I was not sure of the tone of the response. And sadly, I find it hard to disagree with those sentiments.
Chip on June 23, 2011 at 2:20 PM
Don’t they understand they’ll be a talking point for the next 50 years, if they’re around that long, for taking the government money? They latched on to the government teat to save the unions. My tax money may go to them, I won’t spend my personal money for a GM or Chysler. Ford or Foreign for me.
TulsAmerican on June 23, 2011 at 2:22 PM
There is such a thing as a prepackaged bankruptcy, in which the bankrupt and major creditors work it out privately ahead of time, and then present the “plan” to the bankruptcy court as soon as the bankruptcy is filed. Minor creditors have to take what crumbs the plan gives them.
In this case, I’d guess the bankruptcy judge (who is not appointed for life) thought it best not to cross the WH, GM and the UAW.
Wethal on June 23, 2011 at 2:27 PM
At one point in my career, I was one of those salaried non-union white collar workers. Based on my own personal experience, if there is one company that did NOT deserve to be bailed out it was GM. I’m glad I left when I did, and I won’t ever be buying a GM vehicle again.
Desert Gardens on June 23, 2011 at 2:34 PM
Look for the union label, wipe your butt with it, and put it back on the shelf.
Screw all these thieving thugs.
Adjoran on June 23, 2011 at 2:34 PM
Has anyone figured out how the Bamster broke the law in giving GM to the unions instead of the rightful owners?
Christian Conservative on June 23, 2011 at 3:09 PM
Michelle Malkin covered this last year.
PrettyD_Vicious on June 23, 2011 at 3:40 PM
Where is Crr666 when we need her to explain how everything the regime did here was legal?
Youngs98 on June 23, 2011 at 4:02 PM
Would be awesome to either see the salaried employees go on strike or file a complaint with the NLRB. If they go on strike, it would be funny to see how the union members take over the payroll function.
djaymick on June 23, 2011 at 6:51 PM