Friday, October 5, 2012

A White House that punishes adversaries, pays off friends

Investors Business Daily ^ | 10-4-12 | editorial

Cronyism: Did the Obama administration stiff a group of non-union workers and pay off a political ally in the 2009 auto bailout? Yes, it did, says the chairman of the House Ways and Means Committee.
When the administration turned General Motors into Government Motors in 2009's M&A of the automaker, it made sure that retirees from Delphi Corp. who were members of the United Auto Workers didn't lose a dime from their pensions.
The White House, though, was not as generous with the nonunion retirees from GM's parts supplier.
Roughly 22,000 Delphi retirees who were salaried employees and not members of a union were stripped of up to two-thirds of their pensions during the bailout.
They weren't even invited to negotiations by the administration, while the politically favored UAW was asked to sit at the table with GM.
The White House has long rejected charges that there was political manipulation from the administration. It claims that it was in no way involved in the decision and sent officials to Capitol Hill to testify that there was no manipulation from Obama's circle.
But Rep. Dave Camp, chairman of the House Ways and Means Committee, one of three congressional panels probing the pension question, says he has found evidence to the contrary.
(Excerpt) Read more at news.investors.com ...

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