Delphi Allowed to Cancel Health Benefits for 15000 Workers
Date: Tuesday, February 24 @ 21:32:41 CST
Topic: Scienze
By Erik Larson Feb. 24 (Bloomberg) -- Delphi Corp., the bankrupt auto-parts maker, won permission to cancel health-care benefits for 15000 current and former employees, saving $1.1 billion as it tries to emerge from court protection amid falling demand...
![]() NEW YORK—Nancy Shade's father and grandparents had enjoyed the security of General Motors' benefits before they helped draw her to a job there, too. Now, the five-year breast cancer survivor is wondering how she'll afford her own health coverage if GM's spun-off parts maker, Delphi, terminates medical and life insurance benefits for salaried retirees.Delphi Corp., which has been under bankruptcy protection since 2005, has asked a judge to allow it to cancel the benefits as soon as April 1, so the Troy, Mich., company can save more than $70 million a year and take more than $1.1 billion in liabilities off its balance sheet.More than 75 Delphi Corp. retirees like Shade have written directly to U.S. Bankruptcy Judge Robert Drain, begging him to keep them from joining the ranks of the uninsured. Attorneys representing at least three groups of retirees have filed formal objections to the plan.A hearing on Delphi's motion is scheduled for Tuesday in New York.About 15,000 of Delphi's salaried retirees and their surviving spouses rely on the company's medical coverage until they can qualify for Medicare at age 65.Delphi has recognized that the cuts are painful but says in court filings that they are needed if the company ever wants to emerge from Chapter 11 protection. Previous reorganization plans didn't account for the steep drop in vehicle sales late last year that has slashed demand for auto parts.Jim...
Click here to read the content (Source Boston Globe)
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