Tuesday, February 24, 2009 | 6:10 PM
New York bankruptcy judge sides with Delphi
By Rebecca Trylch
NEW YORK (WJRT) -- (02/24/09)--Delphi salaried retirees are learning the benefits they worked for years to secure could be gone in about a month.
Tuesday a New York bankruptcy judge sided with Delphi, saying it can stop paying salaried retirees and their spouses health and life insurance benefits on April 1.
But he also said the retirees have until a March 11 hearing to figure out if they have the right to negotiate with the company.
Delphi says the cuts will save the company $70 million a year. Retirees say losing their benefits will cost them dearly.
For more than 25 years, Gary Bates worked as an engineer for Delphi. In 2001 he took an early retirement.
That meant a lower pension payment, but the guarantee of health care coverage until age 65, when Medicare kicks in. Now, however, Delphi doesn't want to pay.
"I feel kind of deserted," Gates said.
The auto parts company has been under bankruptcy protection since 2005 and is trying to cut debt and other costs.
Bates has been trying to do the same thing after getting a letter on Feb. 5 announcing Delphi's plans.
"We've done mostly just worry and try to find out if there's any possibility to get cheaper insurance," Gates said.
But finding cheaper insurance, Gates says, is next to impossible, especially if you have a pre-existing medical condition. And paying out of pocket for his current coverage is not an option.
"We pay $107 a month," Gates said. "If we ... Delphi has their way it will go up to $1,500 a month."
Now all Gates and the other 15,000 affected retirees and their spouses can do is wait and hope that the March 11 hearing brings better news than Tuesday's hearing.
Source: http://abclocal.go.com/wjrt/story?section=news/local&id=6676256# 
