Southfield (WWJ) -- Thousands of Delphi retirees are disappointed in a bankruptcy judge's ruling that allows the auto supplier to stop paying for health care and insurance benefits for retired salaried workers.
U.S. Bankruptcy Judge Robert Drain on Tuesday provisionally approved the auto supplier's request to cut off the benefits effective April 1. But he says the 15,000 affected retirees can form a committee to investigate if they have the right to negotiate with the company.
The committee will present its findings at a March 11 hearing.
"It's extremely disappointing," John Norris of Fenton told WWJ Tuesday afternoon. "Obviously some of us are in the fortunate position to buy health insurance at a cost which we didn't budget for, others are in a real predicament if they've got pre-existing conditions. It's going to be very expensive or impossible for them to get insurance."
Norris, who worked for Delphi for 30 years, said they will appeal the decision. He added the move could force some retirees into bankruptcy.
Norris was among a group of retirees trying to determine who would sit on the committee. He said through potential deals with General Motors, Delphi would have adequate funding for the benefits.
Troy-based Delphi has been operating under Chapter 11 bankruptcy protection since 2005. It says it needs to cut off the benefits as part of its restructuring.
But attorneys for the retirees say the company is obligated to negotiate with the retirees before it cuts off their benefits.
More than 1,600 retirees sent letters to the judge begging him to deny Delphi's motion.
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