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Delphi Retirees Fight for Health Care, Insurance Benefits

February 17, 2009
Related Topics: Medical Benefits Law, Benefit Design and Communication, Latest News
Delphi Corp.’s retired salaried employees have formed an organization to fight the bankrupt auto parts supplier’s decision to eliminate their health care and life insurance benefits.

Delphi—which says its value if sold may be less than the worth of its post-bankruptcy obligations—filed the motion to cut the retiree benefits February 4 in U.S. Bankruptcy Court in New York.

That sent retirees scrambling to organize and object to the motion before today’s court deadline for those objections, said retiree spokesman Milton Beach. They formed the Delphi Salaried Retiree Association last week and retained the law firm Farella, Braun and Martel.

The law firm, which negotiated retiree benefits during the bankruptcy of Delta Air Lines, planned to file the objection Tuesday, February 17, on behalf of the 1,000 members of the Delphi group. The Bankruptcy Court will hear objections February 24.

Delphi filed for Chapter 11 bankruptcy in October 2005 and was ready to exit in April. But equity partners backed out, leaving the supplier seeking a new plan.

Filed by Chrissie Thompson of Automotive News, a sister publication of Workforce Management. To comment, e-mail

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