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.
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