Obama Administration’s UAW Bailout Smacks of Quid Pro Quo

October 24, 2012
By

The ongoing battle between the Obama administration and the Delphi non-union auto suppliers is heating up. The Obama administration managed the bankruptcy of GM and Chrysler and paid off union pensioners in part with taxpayer bailout money while abandoning non-union workers.

The union workers were put to the front of the line while non-union workers, dealerships and investors were put to the back of the line in violation of standard practice and the law.

The Detroit Free Press reported today that U.S. Rep. David Camp is demanding the release of additional e-mails by the Treasury Department regarding the 2009 decision to fully fund auto supplier Delphi’s UAW retirees while leaving 22,000 non-union workers with drastically lowered benefits.

Camp wants the e-mails by October 30th or he will use a compulsory process.

The UAW bankruptcy which paid off union members while penalizing non-union workers appears to have been controlled by the Obama administration via Geithner’s Treasury Department. Geithner had denied being involved and was not supposed to be. However, Treasury’s handprints are all over it.

Camp’s letter to the Treasury indicates that the Obama administration were very involved in the outcome which unfairly favored union employees:

“Thus far, and on the basis of documents produced both by Treasury and third parties, my investigation has found that the PBGC [Pension Benefit Guaranty Corp] advocated that GM take over both the Delphi hourly and salaried pension plans.”

Unions have paid back the Obama administration with campaign money and foot soldiers.

The UAW deal smacks of quid pro quo cronyism.

Original Story: Obama’s support for unions at the expense of everyone else was never clearer than with the GM bailout. He violated all precedent by managing the bankruptcy through Geithner. He put the non-union parts suppliers and the investors at the back of the line while bringing the UAW to the front of the line.

Private sector retirees who worked at Delphi (a parts supplier) lost as much as 2/3 rds of their pensions so Obama could pay off the unions as he picked winners and losers.

He is for the middle class as long as they are unionized.

via Breitbart

To get GM through bankruptcy, the Obama administration urged the Pension Benefit Guaranty Company (PGBC) to take over the pensions of more than 20,000 Delphi retirees, reducing the pensions by as much as two-thirds and terminating health care and life insurance benefits. GM spun off Delphi, the auto parts supplier,  in 1999.

 Recently-published emails reveal the details of the PBGC’s takeover of the Delphi pensions are murky. Treasury Secretary Tim Geithner may have lied to Congress about his role in the negotiations, which may have financially benefited Obama administration officials and some of their previous employers.

 As the pensions of Delphi retirees were being slashed, the Obama administration was topping off the pensions of union workers with taxpayer-funded bailout funds.

Rep. Mike Turner (R-OH) said he expects the Delphi workers to get their pensions restored and is trying to use Congress’s subpoena power to unearth more of the details behind the takeover of the pensions.

GM is certainly no success story. The company will likely need endless bailouts as it fails to turn a profit. It’s losing its market share and is uncompetitive. Taxpayers own 26% of the company but the stock has sunk to $20 a share while we paid $53 a share for it.

If you want to know why GM can’t compete, read on at forbes

 

Share on FacebookTweet about this on TwitterShare on Google+Print this pageDigg thisShare on RedditShare on StumbleUponShare on Tumblr

Tags: , , , , ,

Archive