After the Financial Crisis: Ongoing Challenges Facing Delphi Retirees
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AFTER THE FINANCIAL CRISIS: ONGOING CHALLENGES FACING DELPHI RETIREES FIELD HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION JULY 13, 2010 Printed for the use of the Committee on Financial Services Serial No. 111–143 ( U.S. GOVERNMENT PRINTING OFFICE 61–847 PDF WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 18:29 Nov 12, 2010 Jkt 061847 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 K:\DOCS\61847.TXT TERRIE HOUSE COMMITTEE ON FINANCIAL SERVICES BARNEY FRANK, Massachusetts, Chairman PAUL E. KANJORSKI, Pennsylvania SPENCER BACHUS, Alabama MAXINE WATERS, California MICHAEL N. CASTLE, Delaware CAROLYN B. MALONEY, New York PETER T. KING, New York LUIS V. GUTIERREZ, Illinois EDWARD R. ROYCE, California NYDIA M. VELA´ ZQUEZ, New York FRANK D. LUCAS, Oklahoma MELVIN L. WATT, North Carolina RON PAUL, Texas GARY L. ACKERMAN, New York DONALD A. MANZULLO, Illinois BRAD SHERMAN, California WALTER B. JONES, JR., North Carolina GREGORY W. MEEKS, New York JUDY BIGGERT, Illinois DENNIS MOORE, Kansas GARY G. MILLER, California MICHAEL E. CAPUANO, Massachusetts SHELLEY MOORE CAPITO, West Virginia RUBE´ N HINOJOSA, Texas JEB HENSARLING, Texas WM. LACY CLAY, Missouri SCOTT GARRETT, New Jersey CAROLYN MCCARTHY, New York J. GRESHAM BARRETT, South Carolina JOE BACA, California JIM GERLACH, Pennsylvania STEPHEN F. LYNCH, Massachusetts RANDY NEUGEBAUER, Texas BRAD MILLER, North Carolina TOM PRICE, Georgia DAVID SCOTT, Georgia PATRICK T. MCHENRY, North Carolina AL GREEN, Texas JOHN CAMPBELL, California EMANUEL CLEAVER, Missouri ADAM PUTNAM, Florida MELISSA L. BEAN, Illinois MICHELE BACHMANN, Minnesota GWEN MOORE, Wisconsin KENNY MARCHANT, Texas PAUL W. HODES, New Hampshire THADDEUS G. McCOTTER, Michigan KEITH ELLISON, Minnesota KEVIN McCARTHY, California RON KLEIN, Florida BILL POSEY, Florida CHARLES WILSON, Ohio LYNN JENKINS, Kansas ED PERLMUTTER, Colorado CHRISTOPHER LEE, New York JOE DONNELLY, Indiana ERIK PAULSEN, Minnesota BILL FOSTER, Illinois LEONARD LANCE, New Jersey ANDRE´ CARSON, Indiana JACKIE SPEIER, California TRAVIS CHILDERS, Mississippi WALT MINNICK, Idaho JOHN ADLER, New Jersey MARY JO KILROY, Ohio STEVE DRIEHAUS, Ohio SUZANNE KOSMAS, Florida ALAN GRAYSON, Florida JIM HIMES, Connecticut GARY PETERS, Michigan DAN MAFFEI, New York JEANNE M. ROSLANOWICK, Staff Director and Chief Counsel (II) VerDate Nov 24 2008 18:29 Nov 12, 2010 Jkt 061847 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 K:\DOCS\61847.TXT TERRIE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS DENNIS MOORE, Kansas, Chairman STEPHEN F. LYNCH, Massachusetts JUDY BIGGERT, Illinois RON KLEIN, Florida PATRICK T. MCHENRY, North Carolina JACKIE SPEIER, California RON PAUL, Texas GWEN MOORE, Wisconsin MICHELE BACHMANN, Minnesota JOHN ADLER, New Jersey CHRISTOPHER LEE, New York MARY JO KILROY, Ohio ERIK PAULSEN, Minnesota STEVE DRIEHAUS, Ohio ALAN GRAYSON, Florida (III) VerDate Nov 24 2008 18:29 Nov 12, 2010 Jkt 061847 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 K:\DOCS\61847.TXT TERRIE VerDate Nov 24 2008 18:29 Nov 12, 2010 Jkt 061847 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 K:\DOCS\61847.TXT TERRIE C O N T E N T S Page Hearing held on: July 13, 2010 ..................................................................................................... 1 Appendix: July 13, 2010 ..................................................................................................... 33 WITNESSES THURSDAY, JULY 13, 2010 Akpadock, Frank, Ph.D, Senior Research Associate and Regional Scientist, Youngstown State University’s Center for Urban and Regional Studies ........ 24 Dragojevic, Milan (Nick) Jr., Delphi hourly retiree .............................................. 20 Fisher, Hon. Lee, Lieutenant Governor of Ohio .................................................... 8 Frost, James, Vice Chair, Delphi Salaried Retiree Association (DSRA) ............. 16 Gump, Bruce, Director, Warren Legislative Council, and Board Member, Del- phi Salaried Retiree Association (DSRA) ........................................................... 14 Hudzik, Mary Ann, Delphi salaried retiree ........................................................... 18 Wernet, Norman, State Director, Ohio Alliance for Retired Americans ............. 22 APPENDIX Prepared statements: Brown, Senator Sherrod ................................................................................... 34 Donnelly, Hon. Joe ........................................................................................... 40 Turner, Hon. Michael R. .................................................................................. 41 Wilson, Hon. Charlie ........................................................................................ 44 Akpadock, Frank .............................................................................................. 46 Dragojevic, Milan (Nick) Jr. ............................................................................ 64 Fisher, Hon. Lee ............................................................................................... 68 Frost, James ...................................................................................................... 72 Gump, Bruce ..................................................................................................... 74 Hudzik, Mary Ann ............................................................................................ 77 Wernet, Norman ............................................................................................... 79 ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD Moore, Hon. Dennis: Issue brief of the Alliance for Retired Americans, entitled, ‘‘Retiring Into Work,’’ dated July 2005 ................................................................................ 85 Issue brief of the Alliance for Retired Americans, entitled, ‘‘Vanishing: Pensions and Savings,’’ dated September 2005 .......................................... 93 Institute for Women’s Policy Research Fact Sheet entitled, ‘‘The Economic Security of Older Women and Men in Ohio,’’ dated January 2007 .......... 101 Michigan Democratic Party, ‘‘Resolution in Support of Delphi Salaried Retirees,’’ adopted May 5, 2010 ................................................................... 105 Ohio AFL–CIO, ‘‘Senate Concurrent Resolution 23’’ ..................................... 107 Letter from Armond Budish, Speaker, Ohio House of Representatives, to President Barack Obama, dated January 27, 2010 ............................... 111 ‘‘Resolution 2010–9’’ ......................................................................................... 113 Letter from Ted Strickland, Governor, State of Ohio, to President Barack Obama, dated September 14, 2009 .............................................................. 114 Letter from Ted Strickland, Governor, State of Ohio, to Chairman Moore, Ranking Member Biggert, and members of the subcommittee, dated July 12, 2010 ................................................................................................. 116 (V) VerDate Nov 24 2008 18:29 Nov 12, 2010 Jkt 061847 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 K:\DOCS\61847.TXT TERRIE VI Page Lee, Hon. Christopher: Series of letters to various parties regarding the Delphi situation .............. 117 Wilson, Hon. Charlie: Written responses to questions submitted to Bruce Gump ........................... 153 List of Delphi retirees who submitted testimonials (testimonials are con- tained in committee files) ............................................................................. 158 VerDate Nov 24 2008 18:29 Nov 12, 2010 Jkt 061847 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 K:\DOCS\61847.TXT TERRIE AFTER THE FINANCIAL CRISIS: ONGOING CHALLENGES FACING DELPHI RETIREES Thursday, July 13, 2010 U.S. HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS, COMMITTEE ON FINANCIAL SERVICES, Washington, D.C. The subcommittee met, pursuant to notice, in the Canfield High School Auditorium, 100 Cardinal Drive, Canfield, Ohio, Hon. Den- nis Moore [chairman of the subcommittee] presiding. Members present: Representatives Moore and Lee. Also present: Representatives Wilson and Ryan. Chairman MOORE OF KANSAS. This field hearing of the Sub- committee on Oversight and Investigations of the House Financial Services Committee will come to order. Our hearing today is enti- tled, ‘‘After the Financial Crisis: Ongoing Challenges Facing Delphi Retires.’’ This is our 15th Oversight and Investigations hearing this Congress, and our 4th field hearing. Before we begin with today’s hearing, I want to take a moment of personal privilege to first thank Representative Charles Wilson for asking that we come to Ohio and focus on this important issue of Delphi workers and retirees and how they are doing following the recent financial crisis. Congress can learn much more about particular issues or challenges when we get out of Washington and hear directly from the people we represent, as we will today. I also want to thank the other Members who have traveled to be with us today: Representative Chris Lee of New York; and Rep- resentative Tim Ryan of Ohio. Finally, I want to thank the City of Canfield for welcoming us to Ohio, as well as Representative Wil- son’s staff and others who made today’s field hearing