The two congressmen for the Howard County area have sent a letter to the CEO of Delphi Corp. expressing concerns about an attempt to eliminate insurance benefits for retired salaried employees.
U.S. Reps. Joe Donnelly, D-2nd District, and Dan Burton, R-5th District, sent the letter Tuesday expressing their deep concern for the motion filed in U.S. Bankruptcy Court in New York on Feb. 5 seeking to discontinue the health and life insurance benefits for 15,000 retired salaried employees on April 1.
The Delphi Salaried Retirees Association, representing more than 1,300 of the retirees, has filed an objection to the termination of the benefits through a San Francisco law firm.
A court hearing is set for Feb. 24.
The letter from Donnelly and Burton indicates there are 5,000 retirees in the area. If the U.S. Bankruptcy Court rules in Delphi’s favor, and the retirees decide to continue the coverage at a minimum monthly cost of $1,366, it could mean the potential loss of up to $6.8 million in disposable income on a monthly basis in the region.
“We are deeply concerned that the decision to discontinue health and life insurance benefits will have a devastating impact on thousands of Delphi’s salaried employees and retirees, as well as their families,” the letter states. “The discontinuance of these benefits will remove a critical safety net at a time when nearly all working families are struggling to meet the challenges posed by the slow economy.”
The employees and retirees have dedicated their lives to Delphi, the letter continues, and have helped to build this company into a global leader in mobile electronics and transportation systems.
“While we recognize that all parties must make sacrifices, we strongly urge you to reevaluate this decision and do everything in your power to restore Delphi to a healthy fiscal position while protecting the promise of retirement health care for your salaried and retired employees,” the letter stated.
Samantha Slater, spokeswoman for Donnelly, said a response is not expected until the court makes a decision.
“I sent this letter to the CEO of Delphi to urge him to find an alternative plan to restore Delphi to a health fiscal position while protecting the promise of health care and retirement benefits,” Donnelly said in a news release.
John Donnelly, Burton’s spokesman, said the letter was a show of support for the retirees.
“There is not a lot that we can do,” he said. “The retirees were counting on those health insurance benefits.”
Ken de la Bastide can be reached at (765) 454 -8580 or via e-mail at ken.delabastide@kokomotribune.com
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