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Non-Union Retirees Shafted in Auto Bailouts Told to Get Jobs
National Legal & Policy Center ^ | May 10, 2012 | Mark Modica

Posted on 05/10/2012 2:06:43 PM PDT by jazusamo

One of the most egregious abuses of the Obama Administration's auto bailouts was the blatant favoritism evidenced in the treatment of Delphi (General Motors' parts supplier) retirees. After the Delphi bankruptcy, UAW retirees had their pensions "topped off" by General Motors, apparently with taxpayer money accessed through TARP. While the UAW retirees maintained their pension benefits, non-union, salaried retirees of Delphi lost theirs. There was no logical reason for one group to have their pensions saved while another group lost theirs, just the facts that the distributions were inequitable and the only difference between the groups was that one belonged to a powerful ally of Team Obama and the other did not.

Evidence now surfaces of the Obama Administration rubbing salt in the wounds of the non-politically connected retirees. When the salaried retirees requested help from President Obama to restore their pension benefits, the Department of Labor's Director of Recovery for Auto Communities and Workers, Jay Williams responded , "Delphi retirees may be eligible for assistance through the Workforce Investment Act Adult and Dislocated Worker Program. The program is designed to provide quality employment and training services to assist eligible individuals in finding and qualifying for meaningful employment and to help employers to find the skilled workers they need to compete and succeed in business." Essentially, "Don't like it? Get a job!"

Congressional investigations into the Delphi debacle continue. The Obama Administration, particularly Tim Geithner and Treasury, have been uncooperative releasing information on their involvement. The lack of transparency has led to Ohio Congressman, Michael Turner, introducing a bill called "RESTORE FOIA Act" to require better access to documents that would expose questionable actions in the auto and bank bailouts by the executive branch of government. As currently written, the Freedom of Information Act provides the Executive Branch with exemptions. The bill would only cover information on TARP actions; other exclusions would not be affected.

The Delphi situation is just further evidence that the auto bailouts were designed to protect union interests. President Obama now campaigns on the "success" of the auto bailouts as groups like the non-union Delphi retirees continue to try and make the public aware of the true intention, which was to protect allies of Obama. Taxpayers, GM bondholders, old GM shareholders and non-union retirees sacrificed while the UAW was able to keep their jobs, benefits and now, bonuses. Delphi retirees and I do not begrudge the UAW for receiving fair wages and benefits, it just shouldn't come at the expense of others.

Congressional investigations should continue and the truth be made known about the auto bailouts that saw non-politically connected classes treated unfairly. If popularity for the auto bailouts decline even further as a result, there is one consolation for President Obama. He can just point to the fact that the auto bailouts were Mitt Romney's idea.

Mark Modica is an NLPC Associate Fellow.


TOPICS: Business/Economy; Government; Politics
KEYWORDS: bailout; blackkk; ccp; china; criticalracetheory; crt; delphi; gm; governmentmotors; kenyanbornmuzzie; labordepartment; obama; obamanation; project1619; uaw

1 posted on 05/10/2012 2:06:45 PM PDT by jazusamo
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To: jazusamo

Ya sure, but the issue today is that romney picked on someone back when he was in prep school. Stay on target!


2 posted on 05/10/2012 2:09:56 PM PDT by JoSixChip (We had an opportunity to get Newt, but you blew it and now we get mitt.)
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To: jazusamo

In a somewhat related vein, I hope that when Gov Walker is reelected, he finds a way to extract the million$$ in costs of the recall election from the pockets of the unions which caused it.


3 posted on 05/10/2012 2:12:06 PM PDT by Sgt_Schultze (A half-truth is a complete lie)
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To: jazusamo
There was no logical reason for one group to have their pensions saved while another group lost theirs...

A statement like this proves that Mr Modica doesn't get out much.

4 posted on 05/10/2012 2:15:47 PM PDT by Gay State Conservative (Julia: another casualty of the "War on Poverty")
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To: Sgt_Schultze

That would be sweet justice but doubt it’ll happen.


5 posted on 05/10/2012 2:18:06 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

I promise to look the other way should these shafted workers decide to “do something” about it to the Obamaloon Clown Show of Felon/Cretins.


6 posted on 05/10/2012 2:18:32 PM PDT by Da Coyote
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Please bump the Freepathon or click above and donate or become a monthly donor!

7 posted on 05/10/2012 2:18:44 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

“Delphi retirees and I do not begrudge the UAW for receiving fair wages and benefits, it just shouldn’t come at the expense of others.”

They want taxpayer bailout money too, and didn’t get it, that’s what their fundamental beef really seems to be.


8 posted on 05/10/2012 2:24:45 PM PDT by RFEngineer
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To: jazusamo
And by breaking bankruptcy laws, many other retirees lost their savings because as bond-holders, they were supposed to be paid off first. But Obama routed that money to the UAW, destroying the retirement funds of an awful lot of people, not just employees of Delphi.

Mark

9 posted on 05/10/2012 2:36:13 PM PDT by MarkL (Do I really look like a guy with a plan?)
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To: MarkL
Exactly...All GM bondholders were basically wiped out. I've a relative that her retirement was mostly GM bonds and now it's mostly gone.
10 posted on 05/10/2012 2:41:21 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

As we all saw at Enron’s collapse and much earlier as well, the answer is Deversify, Deversify and Deversify.

When I served on a Trust Fund Board, we were taught that no matter how good an investment or fund was, the board would be smart to not have it amount to more than 2.5% of the total.

Likewise, you can’t do all your precious metal holdings in Gold. Its good to have some brass and lead.


11 posted on 05/10/2012 2:49:48 PM PDT by KC Burke (Plain Conservative opinions and common sense correction for thirteen years.)
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To: KC Burke

Absolutely agree, on all of that.


12 posted on 05/10/2012 3:01:33 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo
Not to mention banks that had invested money market funds into GM bonds in order to give a competitive and fair return to depositors. When the bondholders were forced to take 27 cents on the dollar, banks (shareholders) ate the losses to keep depositors happy. And yet they are the “bad guys”. This entire fiasco is why I will not purchase the Corvette I always dreamed of buying nor any other GM car. My son-in-law, a lifelong GM supporter, just bought his first Ford.
13 posted on 05/10/2012 3:18:22 PM PDT by Boomer One
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