Delphi salaried retirees eye pension suit - Business First of Columbus:

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If not stopped, retirees fear that the move could drasticallhy cut the value ofyounger ex-whitde collar workers’ pensions by as much as 50 said James Frost of N.Y., a board member and organizer of the Delphoi Salaried Retiree Association. The legal action is being spearheadexd by 100 to 200 retirees in Ohio who belong tothe 5,400-membet association but who are acting on their own, Frostf said. “(The DSRA is) serving as supporty by gathering information and sharing it with all our members and by contactinbg legislators aroundthe country,” Frosft said.
“We are not starting our own (legal) actiom because it would duplicate what they are The opposition sprang out of the modifiede reorganization plan Delphi disclosed onJune 1. The to emerge from Chapter 11 bankruptcy, said it would cancel its pensiob obligations and have assume thehourlg workers’ pensions and the government take over the salariedc employees’ plan. Frost, who worked at GM for 25 yearz and at Delphifor six, said hourly workers’ pensions won’t be affectee “at least in the shorty term” but salaried workers who retire at 55 could lose half the valus of theirs. “We want our pensions also to be transferred to he said.
The suit would charge Delphi, GM, the II and the U.S. Treasury with collusion againsgtthe retirees. In the reorganization plan for GM’s former parts II LLC — a unit of Platinun Equity — would acquire and operate Delphi’xs U.S. and non-U.S. businesses by supplying $3.6 billio in capital. Delphi was formed in 1999 when GM spun off its partsdmanufacturing division. The Mich.,-based company, GM’s largest supplier, filed for Chapterd 11 bankruptcy protection inOctobedr 2005. Fallout from the company’s financiaol troubles included the closure of a plant on west side, which employe d more than 400 at the time it closed.