Delphi salaried retirees return to testify in House hearing

Former workers want auto supplier to reassume pensions.

By K.O. Jackson

A slow, steady stream of water created the Grand Canyon. And Den Black is a slow, steady stream for the Delphi Salaried Retirees Association.

Ten-months ago, to aid in its bankruptcy emergence, Delphi Corp. began terminating benefits to its salaried employees.

In July, to exit bankruptcy, the auto supplier terminated its 70,000 salaried and hourly retirees’ pension plans and gave them to the federal government’s Pension Benefit Guaranty Corp.

The transaction was first reported to cost $6.25 billion. But according to the Government Accountability Office, the cost is now more like $6.7 billion — the second-largest PBGC takeover in history.

When General Motors Co.’s largest supplier spun off of the parent company in 1999, an agreement was made with the United Auto Workers that GM would “top off” hourly retirees’ pensions.

No such agreement was made with salaried retirees. As a result, DSRA members have no benefits with their former employer.

But they do have Black: A slow, steady stream of water attempting to create a path of justice on a road his organization believes has been unjust.

After a successful appearance last month before the Health, Education, Labor and Pension (HELP) subcommittee of the House Education and Labor Committee to complain about their treatment from Delphi, two DSRA representatives will testify before the HELP subcommittee at 10:30 a.m. today.

The hearing will be held in Room 2175 at the Rayburn Building in Washington, D.C.

The hearing is another opportunity for DSRA to tell its story to legislators, said Black, the DSRA’s interim chair.

“This has been going on for 10 months. Everyone we’ve spoken with nod their heads and can’t believe this has happened to us, and it has happened to us and people can’t believe it has happened,” said Black. He has notebooks with more than 400 pages detailing everything that has occurred since Delphi eliminated salaried pensions.

“We want to get someone to say this is an outrage; it’s criminal, unjust, immoral and un-American. But it can be fixed. If people think we are weak, after 10 months of this, we have never been stronger. We have never been better off than where we are right now, because people see we want justice.”

In a news release, U.S. Rep. Dale E. Kildee, a Flint, Mich. Democrat, said more than 11,000 Delphi employees and retirees live in his district, and the co-chair of the Congressional Automotive Caucus plans to participate into today’s hearing.

Unlike their last trip to Washington – when the DSRA was part of several groups discussing pensions reductions – all eyes and ears will be focused solely on Delphi retirees during today’s appearance, said Bruce Gump, a DSRA member.

Today’s goal, Gump said, is to make a strong case against Delphi’s actions so committee members may reverse Delphi’s decision to have the PBGC take over the pensions of DSRA’s 15,000 members.

In addition, the group also has a lawsuit filed in U.S. District Court in Detroit against PBGC to protect and restore the pensions.

“December is a very big month for us,” said Black. Besides Kildee, Sen. Mike Enzi, R-Wyo., has shown support for DSRA by sending a letter to the U.S. Treasury, calling for all documents related to General Motors’ and Delphi’s bankruptcies to be turned over. Other senators want to know who authorized the PBGC to give up its Delphi liens.

“We have two cases out there. And when we win – that’s what our lawyers say, when we win – it will be a shot fired across the bow to show how incorrect this has been to us.

“Being politically correct, it’s never over until the overweight lady sings. For 10 months, this has had many twists and turns. But beyond a shadow of a doubt, we believe we will win. It’s a complicated story, but the short of it is we want what is due to us. We want fair and equal treatment that has been given to the union. We are giving our testimony and going into detail about what has happened to us and it’s been unfair.”

• K.O. Jackson is the Kokomo Tribune’s business writer. He can be reached at 765-854-6739 or via e-mail kirven.jackson@ kokomotribune.com

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