Bankrupting Ohio

From the Forums - This is an important issue and one that highlights the hypocrisy - Staff.

In October, laws went into effect which made consumer bankruptcy more difficult. One of the major requirements was mandatory consumer counseling before one can go bankrupt. Yet one of the main causes of bankruptcy is medical bills, due to an illness or injury. It is difficult to see how consumer counseling will help people avoid medical bills when illness and injury are unplanned and unforeseen.

Needless to say that is now the law.  But what about corporate bankruptcies sweeping the Midwest?

Dana Corporation went bankrupt recently. In recent history Dana has been moving operations overseas – primarily to Mexico – and has been asking for concessionary contracts from the UAW.  The UAW has gone along to try to help the company avoid bankruptcy.  The company took the concessions, then filed for bankruptcy.

Three days before Dana went bankrupt, the board of directors granted the CEO a cash bonus of up to double his salary based on certain undisclosed incentives. Other executives were also given similar bonuses.  These were performance bonuses given to the very managers who shipped Ohio jobs to Mexico, then filed bankruptcy.

This is similar to the deal executives at Delphi are in line to receive after its bankruptcy filing. These bonuses and incentives, due whether the executives stay with the company or not, will run into the 100's of millions of dollars.

What has the Fourth District lost in the process?  Hundreds – perhaps thousands – of jobs, over $5 million annual in local taxes, and another door closed for future workers in Ohio.  Where were the Republicans who represent this area of the state?  Fiddling with stem cell research bans and Ken Blackwell’s TEL/TABOR amendment.  And talking about so-called family values.

I believe that valuing families means providing every opportunity to succeed in the Fourth District.  I have seen families torn apart by closed factories and failing pensions.  That’s why I’ll fight for the issues that really matter to Ohio families, instead of trying to use the power of government to intrude into our private lives.

In the meantime, perhaps the bankruptcy law ought to be changed again. Perhaps boards of directors, chief executive officers and chief financial officers should be required to take 6 months of credit counseling before their company can go bankrupt. What is good for the goose is good for the gander.

Rick Siferd

Democrat for Ohio’s Fourth District

www.siferdforcongress.com