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Monday, November 5, 2012
The Perfect Gift Prank for Hardcore Gamers and Dumb Kids
Delphi retirees say administration betrayed them
In Ohio, a battleground state, thousands of former employees of General Motors' principal parts supplier, Delphi, blame the Obama administration for the deep cuts to their pension. NBC's Lisa Myers reports.
By Talesha Reynolds and Lisa Myers, NBC News
At first glance, David Kane, 63, appears to be solidly middle class. He has a home on a lovely suburban street in Sandusky, Ohio, and a boat docked in the nearby marina.
But looks can be deceiving. Kane doesn?t have television or even a functioning wristwatch. He and his wife Dianne live on their boat, a 1976 Trojan Tri-Cabin in need of repair, for part of the year to save on utility costs. He does outdoor maintenance at the marina to pay for the docking fees.
After a 35-year career at Delphi, the primary parts supplier for General Motors, Kane expected retirement to look much different. He left the company at age 54 as it was downsizing, and he was offered a buyout.
But in 2009, Kane received word that, as part of the bailout to save General Motors, the pensions that he and 20,000 fellow Delphi salaried employees were promised would be reduced 30 to 70 percent.
Kane lost almost half his pension and now receives only $1,600 a month. He says it has been devastating. ?It?s just a beat down, day in and day out, to struggle to get through.?
What makes it more difficult is that other Delphi workers who worked alongside Kane, members of the powerful United Auto Workers union, did not suffer the same fate. They are receiving their full pensions.
When the government stepped in to bail out GM, providing a total of $50 billion from taxpayers, it also had to deal with Delphi, which already was in bankruptcy, because GM needed Delphi?s parts to build its cars. In the process, Delphi?s pensions were handed over to the Pension Benefit Guaranty Corporation (PBCG), a government-backed entity that insures private pensions. The PBCG terminated the pension plans, which were underfunded at the time.
Then General Motors did something that the Government Accountability Office, Congress? investigative arm, later called ?unusual.? GM agreed to top up the pensions of 22,000 Delphi members of the United Auto Workers union ? at a cost of $1 billion. That enabled the UAW workers to still get their full pensions.
But there was no such sweetener for the company?s salaried employees or for the non-UAW hourly workers. And because the PBGC has statutory limits on how much it can pay in benefits, their payments were reduced sharply.
?We were the group that was just kicked to the curb like yesterday?s trash,? said Bruce Gump, vice-chairman of the Delphi Salaried Employees Association.
Now, two congressional committees and the Special Inspector General for the Troubled Asset Recovery Program (SIGTARP) are investigating the basis and motivation for this decision. Was this a political favor for a powerful union that backed President Barack Obama, as critics claim? Or was this a business decision by GM, based, according to the company, on an agreement originally negotiated in 1999 during Delphi?s spin off from the automaker? What role did the Obama administration play?
Inspector General Christy Romero, has said she?s looking into ?whether the (administration?s) auto task force pressured GM to provide additional funding for those pensions.?
In a later agreement with the new GM, two other unions, IUE and USWA, were also topped up. Members of the Delphi Salaried Employees Association say they do not begrudge the union retirees their pensions, because they earned them. The salaried workers just want equal treatment, and they want answers from the government.?
Retirees hard hit by ?broken promises?
Mary Miller, a divorced mother of four who worked at GM and Delphi for over 31 years, said the hit to her pension caused a true hardship.
?It's a struggle every day, and every time anything breaks, it's a near disaster,? she said, adding that she hasn?t had a working dishwasher for two years.
Miller had been counting on her full pension to help her start new career as a life coach.
?My plan was, ?OK, I have a pension and I have health care. And I have a son in high school and sons in college -- and a daughter also.? But if we live very simply, I can make that pension stretch so that I can really have my dream.??
Miller started the business anyway, but she says it is growing slowly because of the economy.
Miller has a friend, a former colleague at Delphi with whom she worked closely for several years in the same role, though he was paid hourly while she was drawing a salary. She can?t understand why he was treated differently.
?What made the work that that person did more valuable than the work I did? What was greater about the promise he received when he went to work for GM and Delphi than what I was told??
Gump, who worked for General Motors and Delphi for almost 33 years and was a senior engineer when he retired, lost about 30 percent of his pension.
?Inside our organization we have lots of people that have seen their homes foreclosed,? he said. ?They?ve had to declare personal bankruptcy. There?s been some families that have broken up over the stress associated with this. There?s even been a couple suicides.?
The DSRA retirees are a politically diverse group ? Republicans, Democrats and Independents ? but regardless of political stripe, many of them believe the Obama administration betrayed them. Howard Collins, a Democrat, said he voted for Barack Obama in 2008 but isn?t sure he would do so again.?
?I don't know if I will decide until I actually go in the voting booth,? he said.?
Did the government pick winners and losers?
As senior advisor on auto issues at the Treasury Department, Ron Bloom led the administration?s Auto Task Force. He insists the government was not involved in GM?s individual decisions but simply approved the overall plan as being viable and based on commercial rather than political considerations.
?What I think is a fair surmise is that General Motors made a judgment that there was a commercial necessity for treating the UAW the way they did,? says Bloom.? There was concern that the unions might interfere with the flow of parts from Delphi to the auto company, which could harm new GM. Topping up the union pensions ensured the work would continue.
?The UAW had commercial leverage in this case, which they utilized.?
Bloom now says he feels for the Delphi workers. ?There's no making it nice. There's no saying it's OK. The only thing one can say is that it was done in a responsible and fair way relative to the rules of the road in a bankruptcy.?
His position was echoed by Treasury Spokesman Anthony Coley, who told NBC News, "As has been exhaustively documented, Treasury's consistent approach to the auto restructuring was to defer to GM's business judgment and not approve or disapprove individual business decisions. While the GM restructuring involved painful concessions from all stakeholders, President Obama's decision to stand behind GM and the American auto industry saved more than a million jobs."
But Bruce Gump, the Delphi salaried workers representative, calls that justification a ?smoke screen.?
?I believe that what really happened was that this administration simply wanted to take care of their political base,? he said.
The administration has turned over thousands of documents related to Treasury?s discussions between GM, Delphi and the PBGC, but not to the satisfaction of members of the House Oversight Committee, House Ways and Means Committee, or attorneys for the salaried Delphi employees? They accuse the Treasury Department of stonewalling and withholding key documents.
Ron Bloom and key Task Force members Harry Wilson and Matthew Feldman refused to be interviewed by the special investigator general of TARP about the Delphi pension decisions for almost a year, until July, when they were called to testify before a house subcommittee.? Rep. Mike Turner, R-Ohio, called their refusal to answer questions ?a happy train of silence.?
The three have now complied and the special investigator general?s audit is nearing completion.
Emails and testimony from lawsuits and ongoing investigations suggest the administration was deeply involved in GM?s decisions and considered a list of ?politically sensitive? issues, but so far there is no proof the pension decisions were driven by political favoritism.
For its part, General Motors maintains that by topping up the union pensions, the company was fulfilling an agreement made at the time of the Delphi spin-off. And GM holds that the fate of the salaried employees was in the hands of the new Delphi.
?Delphi?s salaried pension plan was fully funded, and it was transferred to Delphi at the time the new company was created,? GM spokesperson Greg Martin said in a statement to NBC News.? ?Responsibility for the future health of that plan ? including funding levels and asset allocation ? rested solely with Delphi.? The new GM is not in a position to fund salaried Delphi pensions twice.?
In 2010, then UAW President Ron Gettelfinger expressed support for Delphi?s salaried pensioners.
"This is a grave injustice," Gettelfinger wrote in a letter to the Delphi Salaried Retirees Association. "While the restructuring of America's auto industry requires shared sacrifice and responsibility, Delphi's salaried retirees/former employees are being forced to bear extra burdens that are not warranted."
Seeking resolution
The salaried workers have bipartisan support for their cause.
Last week Rep. Dave Camp, R-Mich., chairman of the House Ways and Means Committee, sent a letter to Department of Treasury Secretary Timothy Geithner and the White House Counsel requesting compliance with a congressional request for documents.
Sen. Sherrod Brown, a Democrat from Ohio, has introduced legislation that would restore the salaried pensions using proceeds from the sale of the government?s shares of GM stock.
But legislation takes time. The group representing the salaried workers would prefer to receive their full pension directly from the Pension Benefit Guaranty Corporation, which they say would not cost taxpayers a dime, because it receives its income from the premiums paid by the companies whose plans it insures.
Whether or not they believe the decision was made to appease an influential ally of the administration, the salaried retirees say that after a three-year struggle, it is just time to put things right.
?Really, that's in the past to be honest with you,? said David Kane. ?You can't do anything about history. It's locked in. Where do we go from here? I'm more focused on what we do now to change the future. That's the only thing we can change.?
Kane?s wife, Dianne, lost her job around the same time his pension was reduced. Together, the couple has nine part-time jobs, but they are still barely making it.
?Our finances were based upon this scale, if you will, of expected income. And even with all the number jobs that we're working, it doesn't replace what we lost. It was easier sliding down the hill than to climb back up it,? Kane said.
Kane?s health has created additional challenges. Months before his pension was cut, he was diagnosed with prostate cancer. He also suffers from chronic fatigue syndrome.
Kane is still looking for full-time work but has had no luck. He suspects his age and poor health are a factor. Nevertheless, he remains hopeful.
?What I would like to see now is that portion of our pensions restored to the levels that they were before Delphi exited bankruptcy and did away with our pensions,? he said. ?If I can get that portion back, I can make it. It's just too tough without it.?
Lisa Myers is NBC's senior investigative correspondent and Talesha Reynolds is an NBC investigative producer.
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Sunday, November 4, 2012
With can-do stance on marathon, Bloomberg misreads NYC
NEW YORK (AP) ? Mayor Michael Bloomberg tried to sell the New York City Marathon as a symbolic victory for the city after a devastating storm, invoking two of the biggest symbols of them all ? Rudy Giuliani and 9/11.
The former mayor, Bloomberg said, made the right decision by holding the marathon less than two months after the 2001 terror attacks: "It pulled people together, and we have to find some ways to express ourselves and show our solidarity with each other."
Then, he kept talking.
"You have to keep going and doing things, and you can grieve, you can cry and you can laugh all at the same time," he said.
And once again, the city cringed, hearing another false note that renewed familiar criticism that New York's billionaire businessman mayor is tone-deaf to suffering during a crisis. By the time Bloomberg changed course three hours later Friday and called off the world's largest marathon, he already had offended a passel of flood-weary New Yorkers.
"He is clueless without a paddle to the reality of what everyone else is dealing with," fumed Joan Wacks, whose waterfront condo in Staten Island was under 4 feet of water. "He's supposed to be the mayor of all the city, but he's really the mayor of Manhattan."
It was a rare reversal for Bloomberg, who's known for sticking by his decisions, however unpopular. He's built a reputation for being an efficient, independent-minded pragmatist in office, a philanthropist and public health innovator, and he has gotten praise for the city's preparedness for the storm.
But at times, people say he lacks empathy for the people he leads.
There was the post-Christmas blizzard that dumped 2 feet of snow on the city in 2010, when the mayor raised hackles by encouraging New Yorkers to enjoy the snow or see a Broadway show to help the city's economy. Residents said the mayor failed to appreciate the outer-borough New Yorkers stranded by snow drifts that hadn't been plowed, unable and without the money to go to the theater.
There was a long-running feud about Sept. 11 victims' remains that were recovered in downtown Manhattan five years after the attacks. A victim's family member, Diane Horning, said then that the mayor indicated he didn't identify with families wanting their loved ones' remains because he wanted to donate his body to science.
Bloomberg was branded an out-of-touch, big-business cheerleader when he said Con Edison's chairman "deserves a thanks from this city" amid a 10-day blackout that affected 174,000 people in parts of Queens in July 2006.
"Going after the CEO just because somebody wants to have somebody to blame doesn't make a lot of sense," Bloomberg said as the outage was in its eighth sweltering day. The remark raised eyebrows, even among the politicians standing behind the mayor at a news briefing.
All this week, the mayor kept returning to economics when defending his decision to keep the marathon going. Officials said the marathon brings in $340 million; it was unclear how much the city still stands to get from the thousands of runners already in town.
"For those who were lost," he said earlier this week, "you've got to believe they would want us to have an economy and have a city go on."
In his first comments since canceling the race, Bloomberg said Saturday that he believed it could have gone on but the controversy had become a distraction.
"I still think that we had the resources to do both," Bloomberg told WCBS-TV during a visit to Queens. "There are lots of people in this city - some hurt, some not. It's a big part of our economy."
"But it was just becoming so divisive that whether it's a good idea or not, we just don't need the distraction."
To the people who came from all over the world for the race, Bloomberg said he would tell them: "I'm sorry. I fought the battle, and sometimes things don't work out."
As the mayor was speaking, he was met by catcalls from Queens residents angry about the city's response to the storm.
Before Friday's cancellation, Bloomberg had faced criticism from everyone from sanitation workers unhappy that they had volunteered to help storm victims but were assigned to the race, to police union leaders, to the Manhattan borough president to his ally, City Council Speaker Christine Quinn.
Melanie Bright, who went three days without electricity and hot water, said the mayor didn't get it. "He feels like we should carry on with our lives, even though people have lost everything," she said.
In a sign of how swiftly the tide turned, City Hall told local officials well into midafternoon Friday that the race was on, according to a person familiar with the situation, speaking on condition of anonymity to discuss behind-the-scenes conversations.
Ultimately, though, Bloomberg relented and canceled the event.
"We cannot allow a controversy over an athletic event ? even one as meaningful as this ? to distract attention away from all the critically important work that is being done to recover from the storm," he said.
The decision quickly drew praise from some of the same officials who had slammed the marathon schedule hours earlier. The mayor made a "sensitive and prudent decision that will allow the attention of this city to remain focused on its recovery," said Manhattan Borough President Scott Stringer.
But for Eddie Kleydman, motioning toward huge piles of ruined furniture in his Staten Island street, the mayor's last-minute change of heart wasn't enough.
"He's worried about the marathon. I'm worried about getting power," Kleydman said. "So he called it off. He has to come here and help us clean."
___
Associated Press writers Leanne Italie, Christine Rexrode and Michael Rubinkam contributed to this report.
Source: http://news.yahoo.com/stance-marathon-mayor-misreads-nyc-070257392--spt.html
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Lady Gaga Wonders Why Critics Don?t Attack Adele Over Being Chubby
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Inhabitat's Week in Green: Tetris pumpkin, giant cardboard ghetto blaster and the world's largest offshore wind farm
Each week our friends at Inhabitat recap the week's most interesting green developments and clean tech news for us -- it's the Week in Green.
Hurricane Sandy dominated the news cycle this week as the storm surge flooded large swaths of New Jersey and New York, knocking down trees, crippling the New York subway system and leaving thousands of people in the dark after a ConEd station in lower Manhattan exploded. The storm caused an estimated $10 billion worth of damage in Manhattan and Brooklyn alone, and it caused lasting environmental contamination when 336,000 gallons of diesel fuel spilled between Staten Island and New Jersey. And it reminded us of the potential dangers of nuclear power when the storm forced three nuclear reactors offline and New Jersey's Oyster Creek power plant was placed on alert.
Inhabitat's Week in Green: Tetris pumpkin, giant cardboard ghetto blaster and the world's largest offshore wind farm originally appeared on Engadget on Sun, 04 Nov 2012 10:00:00 EDT. Please see our terms for use of feeds.
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Saturday, November 3, 2012
'Lucy,' early human ancestor, likely swung from trees
Among the earliest known relatives of humanity definitely known to walk upright was Australopithecus afarensis, the species including the famed 3.2-million-year-old 'Lucy.'
To help resolve this controversy, scientists looked at two complete shoulder blades from the fossil 'Selam,' an exceptionally well-preserved skeleton of a 3-year-old A. afarensis girl dating back 3.3 million years from Dikika, Ethiopia. The arms and shoulders can yield insights on how well they performed at climbing. (Shown here, Selam's cranium, face and mandible.)
Image courtesy of Zeray Alemseged / Dikika Research Project
EnlargeDespite the ability to walk upright, early relatives of humanity represented by the famed "Lucy" fossil likely spent much of their time in trees, remaining very active climbers, researchers say.
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Humans are unique among living primates in that walking bipedally ? on two feet ? is humans' chief mode of locomotion. This upright posture freed their hands up for using tools, one of the key factors behind humans' domination of the planet.
Among the earliest known relatives of humanity definitely known to?walk upright?was?Australopithecus afarensis, the species including the famed 3.2-million-year-old "Lucy."?Australopithecines?are the leading candidates for direct ancestors of the human lineage, living about 2.9 million to 3.8 million years ago in East Africa.
Although Lucy and her kin were no knuckle-draggers, whether they also spent much of their time in trees was hotly debated. Uncovering the answer to this question could shed light on the evolutionary forces that shaped the human lineage.
"When looking at how we became human, an important moment in our history was abandoning a lifestyle in the trees, and when that happened is a big question," researcher Zeresenay Alemseged, a paleoanthropologist at the California Academy of Sciences, told LiveScience.
To help resolve this controversy, scientists have for the first time comprehensively analyzed two complete shoulder blades from the fossil "Selam," an exceptionally well-preserved skeleton of?a 3-year-old?A. afarensis?girl?dating back 3.3 million years from Dikika, Ethiopia. The arms and shoulders can yield insights on how well they performed at climbing. [See Photos of Early Human 'Selam' Fossils]
"This study moves us a step closer toward answering the question 'When did our ancestors abandon climbing behavior?'" said Alemseged, who discovered Selam in 2000. "It appears that this happened much later than many researchers have previously suggested."
Researchers spent 11 years carefully extracting Selam's two shoulder blades from the rest of the skeleton, which was encased in a sandstone block. "Because shoulder blades are paper-thin, they rarely fossilize, and when they do, they are almost always fragmentary," Alemseged said. "So finding both shoulder blades completely intact and attached to a skeleton of a known and pivotal species was like hitting the jackpot."
The researchers found these bones had several details in common with those of modern apes, suggesting they lived part of the time in trees. For instance, the socket for the shoulder joint was pointed upward in both Selam and today's apes, a sign of an active climber. In humans, these sockets face out to the sides.
Lucy's adult shoulder sockets also faced upward, suggesting that, like modern apes, her species was?equipped for tree-climbing?throughout its life span. Humans, on the other hand, are born with a somewhat downward-facing socket that gradually moves to face outward as people mature.
"The question as to whether?Australopithecus afarensis?was strictly bipedal or if they also climbed trees has been intensely debated for more than 30 years," researcher David Green at Midwestern University in Downers Grove, Ill., said in a statement. "These remarkable fossils provide strong evidence that these individuals were still climbing at this stage inhuman evolution."
At the same time, most researchers agree that many traits of the?A. afarensis?hip bone, lower limb, and foot are unequivocally humanlike and adapted for upright walking.
"This new find confirms the pivotal place that Lucy and Selam's species occupies in human evolution," Alemseged said. "While bipedal like humans,?A. afarensis?was still a capable climber. Though not fully human,?A. afarensis?was clearly on its way."
"The skeleton of Selam is a goldmine of scientific information," Alemseged added. "We think it will continue to be so as we go further with preparation and cleaning work."
Green and Alemseged detailed their findings in the Oct. 26 issue of the journal Science.
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Note to Bloomberg: The marathon should not go on
In the wake of Superstorm Sandy, ultramarathoner Dean Karnazes' first instinct was not to run the New York City Marathon. So he canceled. Then he heard from the organizers who said Mayor Michael Bloomberg was urging runners to compete.
"That's when I changed my plan," Karnazes told Yahoo! Sports.
So he hopped on a redeye from San Francisco, landed in New York early Friday morning ready to run on Sunday.
But now his emotions are at odds.
"I have to be honest, I'm really conflicted," Karnazes said. "I just can't imagine the grief that people are feeling right now. It just seems like it's too close."
He's not alone.
[Photos: NYC Marathon scheduled for Sunday]
Now that he's in the city, Karnazes is talking to fellow runners who are just as concerned if not more so about the race being run. Karnazes said, "Half the people would be relieved if it was canceled."
That's what Bloomberg should do.
The mayor's initial decision to go ahead with the event was optimistic and uplifting. He should go back on it.
A lot of minds were surely changed Friday morning when the New York Post showed a photograph on its cover of two massive generators, strong enough to power up to 400 homes in darkened Staten Island, that will instead be used to power the marathon's media center. The machines were purchased with private money, but the message was clear: visitors to Manhattan get resources while city residents in outer boroughs suffer.
[Y! News: How to help relief efforts for Superstorm Sandy]
The city is not ready. People are still without power and plumbing. Falling temperatures are making their severe problems worse. The forecast is for temperatures in the 20s in New York City on Saturday night ? the night before the marathon ? with another nor'easter on the way next week. A crane still dangles precariously above the city. And Staten Island, so often forgotten in the glow of Manhattan, remains in a state of crisis.
"They forgot about us," 42-year-old Staten Island resident Theresa Connor told Metro, describing her neighborhood as "annihilated." "And Bloomberg said New York is fine. The marathon is on!"
There is still an emergency in New York City, and the idea of thousands of people running through it, stopping along the way for Gatorade and bananas, then being greeted by fans at the end, is cringeworthy at best. For the sake of everyone involved ? and certainly everyone in Staten Island and parts of Queens and Manhattan who is not involved ? Mayor Bloomberg should postpone it.
Quite simply, a city that could not accommodate the president of the United States this week surely cannot accommodate thousands of visitors in one day.
This is nothing against the marathon, the terrific people who organize it or the commendable people who run it. Athletes and weekend warriors shouldn't be demonized here; many have deep reservations about participating, and many want to run to honor those in need. The marathon is a jewel ? not only for the city but for the country. It stands for the best things about New York: the people, the spirit, the togetherness.
It also brings a lot of money to the city ? upwards of $300 million. But it will bring in hundreds of millions if it's run in April. Sure, the city wants to show its resilience, but the symbolism of running a race won't provide real help to anyone. Let's worry about what needs to happen in the next few hours. And that is rescue and recovery.
"I think this is an example of what infuriates people here on Staten Island," Congressman Michael Grimm said at a press conference Thursday. "We have people ? people still in water. Families displaced, families wondering where their grandparents are. Are they at a shelter? Are they at a hospital? Or are they gone? That's what we should be focusing on. I think it would be very misguided to have this marathon."
"It's freezing like an ice box," Staten Island resident Lydia Crespo told the Wall Street Journal. "No hot water, no light. All you smell is the gas, the oil, the mold."
Ms. Crespo and all those like her deserve the full resources of a strapped and fatigued city. The full resources ? not resources minus what goes to putting on a race.
Even NFL commissioner Roger Goodell is aware of the possible PR nightmare. He has reached out to New Jersey governor Chris Christie to make sure no emergency resources will be devoted to Sunday's Giants home game against the Pittsburgh Steelers. Whether that game should even be played is worthy of discussion as well, as wide swaths of New Jersey are still in the dark. The Steelers themselves can't stay overnight because their hotel has no power. Why can't that game be postponed as well?
Sports are wonderful ? one of the greatest aspects of American society. They bring out the best in us at the worst times. But now is not the time for sports. Now is the time for the kind of healing sports cannot provide.
Stop the race. Start the generators in Staten Island.
Yahoo! Sports social editor Eric Orvieto contributed to this story
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Source: http://sports.yahoo.com/news/note-to-bloomberg--the-new-york-city-marathon-should-not-go-on.html
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