State Attorney General Opposes Chrysler Sale

Staff Writer, May 15, 2009

Illinois’ Attorney General, Lisa Madigan recently filed an objection to Chrysler’s pending sale to Fiat. Madigan took her argument to federal bankruptcy court on the behalf of the Illinois Workers’ Compensation Commission and the Illinois Self-Insurers Advisory Board. She, along with the Attorney Generals from Michigan and Ohio are concerned that Chrysler employees will lose the ability to receive workers’ compensation from the failing company.

Under the terms of sale that have been discussed, Chrysler may not retain sufficient assets to pay compensation benefits to its injured workers, and Fiat would not assume the responsibility. This means that thousands of Chrysler employees would be left to struggle with their lost wages and medical expenses on their own or turn to each state’s Insurers Security Fund. This additional cost would push states deeper into debt.

The federal government recently issued an ultimatum to Chrysler- sell or declare bankruptcy. However, Madigan and others do not feel that this is the best course of action for the states’ coffers.