Judge denies GM salaried retirees' request for committee
As part of its restructuring plan, GM plans to continue to pay health care and life insurance benefits for its 122,000 salaried retirees and their surviving spouses, but those benefits are expected to be reduced and the retirees will be forced to shoulder a larger share of their health care costs.
Bree Fowler, Associated Press
A bankruptcy judge on Thursday (June 25) ruled that a group representing General Motors Corp.'s salaried retirees cannot form a formal committee to negotiate with the automaker as it attempts to reorganize under bankruptcy protection.
U.S. Judge Robert Gerber said that since GM had the right to modify or terminate the retirees' health care and life insurance benefits before it filed for bankruptcy protection, the retirees can't challenge the automaker's ability to do so now.
"While I do understand the importance of this to the retirees, I can't grant the retirees rights that they don't have outside of bankruptcy," Gerber said in issuing his ruling.
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