Free Markets, Free People

pensions

Obama administration complicit in cutting non-union GM employee pensions

Despite denials, it appears the Obama administration had a hand in cutting the pensions of non-union GM workers.  Another “unexpected” event from the transparent administration:

New emails obtained by The Daily Caller contradict claims by the Obama administration that the Treasury Department would avoid “intervening in the day-to-day management” of General Motors post-auto bailout.

These messages reveal that Treasury officials were involved in decision-making that led to more than 20,000 non-union workers losing their pensions.

Remember, this is the same administration that perverted the bankruptcy system to favor unions and essentially screw investors.  This is more evidence of the administrations concerted effort to save their prime constituency by treating non-union workers differently and using their benefits as a means of cutting costs while mostly preserving union benefits.

This came to light in Congressional hearings yesterday:

At a Wednesday hearing, the House Oversight Committee’s Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending started pushing the Treasury Department for answers on the effects of the bailout and on how much of a role the department played in picking winners and losers.

The key point of the Wednesday hearing was to show that the Obama administration advised GM on how to eliminate the Delphi workers’ pensions. The evidence suggests Geithner’s team played a significant role in that process, despite claims to the contrary.

This despite administration testimony previously claimed no involvement:

In 2009 congressional testimony, senior Obama administration official Ron Bloom said the president told the Treasury Department to stay out of the management of these companies and downplayed any administration intervention.

“From the beginning of this process, the President gave the Auto Task Force two clear directions regarding its approach to the auto restructurings,” Bloom said then. “The first was to behave in a commercial manner by ensuring that all stakeholders were treated fairly and received neither more nor less than they would have simply because the government was involved. The second was to refrain from intervening in the day-to-day management of these companies.”

But the emails TheDC obtained show high-ranking Treasury Department officials, including Matthew Feldman of Treasury’s Auto Task Force, corresponding with senior GM officials on how to make certain decisions regarding who was going to win and who was going to lose.

You can’t put it any clearer than the Daily Caller does – this is government picking winners and losers.   Not only that, it is clear that the administration has favorites and no qualms whatsoever about throwing unfavored constituencies under the bus to ensure their constituency benefits.

Is that the purpose of government?

~McQ

Twitter: @McQandO

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Speaking of pensions and unions

If you loved TARP, were enamored with the government bailout of banks and financial institutions and orgasmic at the government takeover of GM and Chrysler, you’ll love this as well:

Here, let me lay it out for you – if Bob Casey can push this through Congress and rescue private union administered pensions via taxpayer money, what has been set? Why precedent, of course.
Now refer to the story about California just below this one and tell me what the number you see there amounts too.  If Congress grants relief to union administered pensions, it’s only fair that it do the same with those owed by state governments who are also upside-down on pension benefits to the tune of multiples of billions of dollars (in CA’s case 500 billion), right?  I mean can you expect California’s pension debt to be characterized as anything other than a “crippling expense” that “threatens” the financial viability of the state and “the jobs of its employees?”  Yeah, I can’t either.  But I can imagine California and other states petitioning the federal government under the same provisions this plan uses to rescue private union-administered pension plans.  Can’t you?
$8 -10 billion cost.  What a load of crap to begin with.  And then add the more than probable addition of state pension funds.  But, of course, you can count of PAYGO being duly invoked and used on this one, can’t you?  Yeah, in the pig’s other eye.
~McQ

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