DAYTON, Ohio (WDTN) - A government report is shedding light on who was responsible for pension cuts for Delphi retirees during the general motors bankruptcy. Delphi was a big supplier to General Motors.
Their union employees got full pensions, but salaried ones did not. This report details the Treasury Department's involvement in GM's bailout-- using what's known as tarp money.
It says treasury officials were more than advisors-- and influenced decisions including, who got pensions. While the report did not say if the treasury department's role was right or wrong, former Delphi salaried employees from our area say this puts them a step closer to getting their money.
“They just figured we would not fight, not have the money, run out of money, give up, die, otherwise go away. They were wrong,” said former Delphi salaried employee. Former Delphi salaried employee tom rose says this audit report by the Inspector General is just what they were waiting for.
Natalie: "Does this give you some of the answers you were looking for?”
Tom Rose: "Absolutely. This vindicates our position"
The report states the Treasury Department influenced GM's bailout and bankruptcy decisions, which cut salaried Delphi employees pensions by up to 70 percent. Unionized workers were paid their full share.
Rose says the 20,000 salaried retirees have always felt the government had a hand in the decision and he says this report backs that up.
"We feel it's vindicated our perspective that treasury was involved in the termination of our pension which is illegal," said Rose.
The salaried retirees, along with congressman mike turner have been working for four years to get an answer about why union workers got full pensions and they did not.
I talked to congressman turner and asked him about this particular quote from a treasury committee member that reads, "I don't think that anybody thinks bankruptcy is fair."
"Bankruptcy is supposed to be fair what happens in bankruptcy is that each party comes to the table with their own amounts of leverage and interest and in this instance what happened is the treasury department avoided the process because they were using tarp funds they became gm, became the lender, became the bond holder," said Congressman Turner. The Treasury Department responded to the report by saying GM's pension decision was driven by sound commercial reasons.
They said the report makes a number of judgments and characterizations not supported by the facts. They said the actions brought stability to the auto industry and helped save millions of jobs. But to those people who spent years working for the company, that's not enough.
"The truth is starting to emerge and they don't like it," said Rose. The salaried employees came up with a solution they say will pay them, but won't cost taxpayers anything. They’ve asked the treasury to consider that plan.
Meanwhile, Congressman Turner told me he wants every bit of information used to create this report and there's a subpoena to get it.
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