Two federal lawmakers have asked the Government Accountability Office to examine the federal financial assistance provided to General Motors Co. and its treatment of non-union Delphi retirees.
Neither GM nor the Obama administration’s automotive task force ”has provided a full explanation about why some Delphi pension obligations will be met by GM while the salaried retirees are not made whole,” Rep. John Boehner, R-Ohio, said in a joint statement with Sen. Roger Wicker, R-Miss., announcing the request.
“On the surface, the result of the GM bankruptcy proceedings appears to be a union bailout,” Mr. Wicker said in the statement. “While union pension benefits were left intact during these proceedings, other non-union counterparts lost most of their retiree benefits. American taxpayers deserve more openness from the administration regarding how these pension decisions were made and whether union members received preferential treatment.”
Delphi Corp., whose former parent was GM, filed for bankruptcy in 2005 and had its pension plans terminated in 2009. Delphi emerged from bankruptcy in 2009.
Pension and Investments