Lawmakers on Capital Hill Wednesday heard testimony surrounding the Treasury Department’s role in the loss of pensions for Delphi salaried employees, shedding new light on how the decisions were made.
The hearing surrounded a report by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP)*. It finds that General Motors was pressured by union contracts and time restraints to restore the pensions of union employees, while non-salaried employees lost 30 to 70 percent of their pensions.
Following GM’s pullout of the Moraine Assembly plant, the city lost residents, and an estimated 40 to 50% of its revenue. Five years later the city is working hard to revive Moraine’s economy.
Moraine’s big revenue losses came as a result of losing GM, Delphi and a number of smaller auto parts contracting businesses. To try and compensate for the losses, the city took a number of steps to curb expenditures – Some city employees were laid off, furloughs were implemented for others, and the water park – Splash Moraine- was closed.
When automaker, General Motors, went through bankruptcy in 2009, about 20,000 non-union, salaried retirees from Delphi saw their pensions slashed, and other benefits like health and life insurance dropped completely. Those cuts were not applied to all Delphi union workers. WYSO’s Jerry Kenney reports, fingers are now pointing at the US Treasury Department for not applying those cuts evenly for all Delphi workers.