7 Delphi retirees testify at Statehouse

By Marc Kovac

COLUMBUS — When it comes time to replace the battery in Milan Dragojevic’s internal cardiac defibrillator, it’s probably going to cost the Warren-area man about $7,000 out of pocket.

That’s because Dragojevic, like thousands of other Delphi retirees living in the state, had his pension and health-care benefits slashed after the bankruptcy and subsequent government bailout of General Motors.

“That’s a huge expense for anyone, especially a retiree on a fixed income,” Dragojevic said of his coming health-care bills. “Some retirees who will need medical attention will forgo it due to insufficient funds.”

He added, “We only ask for the earned, promised benefits and fair and equitable treatment for all parties involved.”

Dragojevic testified at the Statehouse on Tuesday before a House committee considering a resolution offered by Rep. Bob Hagan of Youngstown, D-60th. The mostly symbolic gesture would make official the state’s stance on the way Delphi retirees are being treated and urge federal involvement to make the situation right.

“As bailout money was received by GM and subsequently funneled to Delphi during bankruptcy proceedings, the primary focus of Delphi and GM was paying creditors and investors first,” Hagan testified Tuesday. “This is a far too common tale in this economic climate. Corporate backers and high-stakes investors get their money back. Deserving employees are not even paid what is earned from their years of service.”

Tuesday’s hearing before the House’s Aging and Disabilities Committee included testimony from seven Delphi retirees, including Bruce Gump, another Warren-area man who criticized the federal government for its unequal treatment of workers in the GM bailout.

“It is a terrible thing when companies choose to treat their employees badly; it is much worse when they choose to badly treat their retirees who are dependent on their promised and earned benefits,” Gump said.

Those who attended Tuesday’s hearing also cited a Youngstown State University study of the situation, which pinpointed the $161 million economic loss and 5,000-job reduction facing the Mahoning Valley as a result of the situation.

“There will be personal bankruptcies and additional foreclosures,” Gump said. “Real-estate values will fall further. Some businesses will fail altogether and local income and sales taxes will decline. Funding for fire and police, programs for the disabled and for school systems will decline. All this at a time when the economy of Ohio is struggling to recover from a major recession.”

“This legislation is not asking for special treatment of Delphi salaried retirees,” Hagan added in his testimony. “We are simply asking that the men and women who have worked their whole lives to provide for their families are given the same amount of concern that Delphi and GM have been given.”