U.S. Representative Mike Turner this morning testified before the House Education and Labor Subcommittee on Health, Employment, Labor and Pensions hearing investigating the management of former Delphi Corporation employees’ pension plans.
U.S. Representative Mike Turner this morning testified before the House Education and Labor Subcommittee on Health, Employment, Labor and Pensions hearing investigating the management of former Delphi Corporation employees’ pension plans.
Capitol Hill lawmakers heard statements from several Members of Congress, including Rep. Turner, and former Delphi employees on how the impact of the automotive parts manufacturer bankruptcy has affected retirees’ pensions. Approximately 1,000 salaried Delphi retirees from the Dayton region have been impacted as a result of Delphi’s bankruptcy.
Rep. Turner shared with the congressional panel the impact of Delphi’s bankruptcy to the Dayton region. “The effect of these plant closures has been felt throughout the Dayton region as many of our family members, neighbors, and friends were Delphi employees. The closure of these facilities also has an impact beyond individual job loss. Whole neighborhoods have been affected by Delphi’s bankruptcy through increased foreclosures, and community services have been affected because of an eroded tax base,” Turner said at this morning’s hearing.
In July, the U.S. Bankruptcy Court granted authority to the Pension Benefit Guaranty Corporation (PBGC) to assume responsibility for the pension plans of thousands of Delphi Corporation salaried retirees. As a result, many employees faced as much as a 70 percent reduction in pension benefits.
“All of these retirees, regardless of labor affiliation or not, worked alongside each other during their careers. They should not be treated differently in their retirement,” Rep. Turner said. “Congress and President Obama’s Administration owe it to these hard working men and women to pursue aggressive oversight in this matter, and to work toward a solution. Today’s hearing is the first step to finding the answers and assisting these retirees.”
Tom Rose, a leader of the Dayton chapter of the Delphi Salaried Retirees Association (DSRA), drove to Capitol Hill to attend this morning’s hearing. “It’s disheartening Delphi and General Motors has backed away from the deferred compensation promised to their former employees,” said Rose, a former GM/Delphi salaried employee with nearly 40 years of service. “This morning’s congressional hearing is the beginning of seeking fair and equitable treatment of our pension benefits. We will continue to work with Congressman Turner and other officials as we seek answers.”