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Employees at the former parts supplier still await compensation years later.
President Trump included the $1 billion request in a budget letter.
The approaching midterm elections may have influenced Trump’s decision.
If President Donald Trump gets his way, non-union retirees from Delphi Corp. could split a $1 billion pool nearly two decades after the Obama administration pulled GM back from the edge of bankruptcy. The money would land with workers who have spent the better part of twenty years waiting for it, and the request arrives folded into a budget letter that has very little to do with cars.
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Delphi Corp. was once a massive automotive parts supplier established by GM in Michigan. When the Obama administration oversaw bankruptcy proceedings at GM during the global financial crisis, union retirees at Delphi held onto their support. More than 20,000 non-union retirees were not so lucky, watching their benefits shrink by an average of 30 to 70 percent. They have been fighting to get paid ever since.
Read: Trump Says Ford And GM Want A Bill To Restrict Your ‘Right To Repair’ Your Own Car
President Trump wants to come to their rescue. In a recent Office of Management and Budget letter to House Speaker Mike Johnson, he requested an $87.6 billion supplemental budget. Most of that is earmarked for ongoing military operations in Iran, though one line asks for $1 billion “to increase the benefit levels for participants of certain pension plans that were sponsored by Delphi Corporation and terminated as a result of General Motors’ bankruptcy.”
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Buying Votes?
White House
The timing of the push is telling. The midterm elections are just months away, and it’s possible the Trump administration could lose control of one or both chambers of Congress. Knowing that compensating former Delphi employees could be a big issue in the Midwest, the administration likely sees this as a good opportunity to curry favor with voters.
The matter has already spent considerable time in the courts, reports the Detroit Free Press . One earlier case argued that the Pension Benefit Guaranty Corporation, which insures some private pension funds, lacked the authority to take over the salaried retirees’ plan and reduce their benefits. The US Court of Appeals for the 6th Circuit disagreed, as did the US Supreme Court in 2022.
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