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15-Aug-08 11:15 [Americas]
US govt pressures company for pension obligations It was reported today that the American government has ordered bankrupt car part manufacturer, Delphi Corp, to pay $1.5 billion (£808 million) to its former parent company by the end of September.
Reuters stated that the company owes the money in the form of unfunded pension obligations, which it has to pay General Motors Corp (GM), according to a source near to the New York Times.
It added that the Pension Benefit Guaranty Corp warned GM and Delphi that it would claim $8 billion if the car manufacturer did not keep its pension scheme running, in a move to secure the safety of payments to workers.
The news provider also noted that the separation of Delphi from GM also created a deal wherein GM would "assume pension and health care obligations of thousands of Delphi employees represented by the United Auto Workers union should the supplier be unable to do so".
A report last month by the Motley Fool revealed that pensions at General Motors were "sufficiently funded or better".
The last 12 months have proven to be a very painful time for pension funds in Ireland, according to an investment consultant service's research this week.
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In response to a worsening situation on the high street, major retailer Marks & Spencer (M&S) has announced 1,200 job cuts and big changes to the current final salary pension scheme they offer.
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The value of the hours of unpaid overtime in the UK is £26.9 billion, according to the Trades Union Congress (TUC).
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