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Posted: 8:35 a.m. Monday, July 27, 2009

PANDERING TO THE UNIONS 

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By Neal Boortz

In case you were worried about the United Auto Workers union lately, you needn't be. It looks like they will be taken care of just fine. As for other workers in the auto industry, they may not be so lucky. Take a look at the latest from the Wall Street Journal.

It's hard to keep up, but this week the federal Pension Benefit Guaranty Corporation took over the pension liabilities of Delphi, the auto-parts spinoff of GM that has been working its way through Chapter 11 since 2005. As with the previous taxpayer rescues, this one includes a special favor for the United Auto Workers.

Under the agreement, the PBGC will assume some $6.2 billion in pension liabilities from Delphi, including both hourly and salaried employees ... As Delphi's former parent, GM had agreed to take responsibility for billions of dollars of Delphi's pension obligations to its hourly employees.

It will be months before Delphi employees know what percentage of their expected pension they'll receive, but not all pensioners are created equal in this arrangement. UAW employees will have their pensions made whole by GM, which insists it is merely fulfilling its end of a deal made with the UAW in 1999 (when it spun off Delphi) to cover any future pension shortfall ... Less fortunate are smaller unions and Delphi's salaried employees, whose pensions may see drastic reductions and who already lost their health care and life insurance plans on April 1.

There are two groups that Obama and the Democrats are sure to protect as their big-government agenda progresses: Unions and trial lawyers. You didn't happen to see any medical malpractice reform in the government health plans, did you?

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