Republican Reps. Mike Turner of Ohio and Dan Burton of Indiana are asking House Oversight Committee Chairman Darrell Issa, California Republican, to dig into the Obama administration’s decision to cut more than 20,000 private-sector workers’ pensions and eliminate their health and life insurance plans during the General Motors (GM) bailout in 2009.
A spokesman for Issa’s committee told The Daily Caller the committee “remains interested” and is “looking forward” to findings from an ongoing Government Accountability Office investigation, which is expected to come out within the next couple of months. What Turner and Burton are saying happened during the GM bailout is that 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. The problem with that, according to the congressmen, is that Geithner decided to fully fund the pensions of union workers involved in the process – including workers associated with United Auto Workers, Steelworkers and the IUE-CWA.
“This is a terrible injustice. This is a political decision, not a legal or financial decision,” Turner said in a phone interview with TheDC. “There were people who were penalized and people were chosen as winners and losers. The White House, the administration and the Auto Task Force (ATF) decided who were going to receive their pensions and who were not.”
Bruce Gump, one of the workers who lost most of his pension and his health and life insurance plans, said what really disappoints him is how Geithner justified his decision. “Mr. Geithner justified that by saying in the press that there was no commercial necessity to do anything for those people,” Gump told TheDC. “So, to him, we were just ‘those people’ and he thought that commercial necessity was a justification to out certain groups.”
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A spokesman for Issa’s committee told The Daily Caller the committee “remains interested” and is “looking forward” to findings from an ongoing Government Accountability Office investigation, which is expected to come out within the next couple of months. What Turner and Burton are saying happened during the GM bailout is that 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. The problem with that, according to the congressmen, is that Geithner decided to fully fund the pensions of union workers involved in the process – including workers associated with United Auto Workers, Steelworkers and the IUE-CWA.
“This is a terrible injustice. This is a political decision, not a legal or financial decision,” Turner said in a phone interview with TheDC. “There were people who were penalized and people were chosen as winners and losers. The White House, the administration and the Auto Task Force (ATF) decided who were going to receive their pensions and who were not.”
Bruce Gump, one of the workers who lost most of his pension and his health and life insurance plans, said what really disappoints him is how Geithner justified his decision. “Mr. Geithner justified that by saying in the press that there was no commercial necessity to do anything for those people,” Gump told TheDC. “So, to him, we were just ‘those people’ and he thought that commercial necessity was a justification to out certain groups.”
More here
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