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The Delphi disaster: Judge refuses to dismiss non-union pensioners’ charges

By Michelle Malkin  •  September 24, 2010 04:58 PM

Good news today for the Delphi salaried retirees who were screwed over by Team Obama’s auto task force and the UAW.

As I reported Wednesday, the Delphi white-collar workers were in court today for a hearing on their federal lawsuit challenging the backroom deals that led to massively slashed pension benefits for non-union workers while union workers’ pensions were made whole.

The Detroit News reports today that the judge in the case refused to dismiss their key charges against the government:

A federal judge today refused to dismiss three charges in a lawsuit filed by thousands of salaried Delphi retirees seeking to restore pension benefits.

U.S. District Judge Arthur J. Tarnow denied an attempt to dismiss the retirees’ claim that their pension plan was terminated illegally in an agreement made between Delphi and the PBGC, not by court decision. He also would not dismiss a claim the retirees’ constitutional rights were violated when the pension plan was terminated.

Delphi’s 20,000 salaried retirees filed a class-action lawsuit last year seeking to block the company’s decision to abandon its pension plans and hand them to the government’s insurer, the Pension Benefit Guaranty Corp.

…Retirees also sued the Treasury Department and members of President Barack Obama’s auto task force. The Treasury, and task force members have asked Tarnow to dismiss the lawsuit or, in the alternative, for summary judgment.

The ruling means that the retirees can now ask to subpoena documents from the Treasury Department, the PBGC and GM as evidence that political considerations led to unfair treatment of Delphi’s 20,000 salaried workers and retirees.

Let the sun shine in…and prepare for the Obama stonewallers.


Support the Delphi salaried retirees’ fight here.


Obama loves to attack Republicans for driving America’s economic vehicle into the ditch.

Republicans need to slap back at the analogy and make clear what Obama did: He seized the title to the car, put Big Labor in the driver’s seat, and rode shotgun as the Democrats committed mass vehicular homicide — running over workers, dealers, bondholders, and anyone else who stood in the way.


Delphi retiree Joe Musick writes that the GOP needs to up the ante: Propose legislation to use TARP funds to make the Delphi salaried retirees whole — just as they did with the union workers.