There were multiple calls for Millikin to resign, as well as for GM to unseal ignition switch death and serious injury settlements. He refused.
It is no surprise that the 15 GM employees in the fatal ignition switch tragedy were ‘packaged out,’ Human Resource jargon for dismissal deals that provide compensation or benefits not otherwise entitled to under the circumstances. Such packages also include confidentiality agreements, aka gag orders, and the waiver of the right to pursue wrongful dismissal against the company. Not coincidentally, none of the dismissed GM staff is challenging GM. None has spoken in public.
This issue emerged this morning at a Senate Subcommittee hearing that was highly critical of GM’s legal staff. Chief Counsel and EVP Mike Millikin admitted such under tough questioning. Millikin went on to say however, the employees could talk to any regulatory agency if they feel the need to. Whether it would be wise to do so is another question. Some of the dismissed GM employees could face criminal charges.
“We had lawyers at GM who didn’t do their jobs; didn’t do what was expected of them. Those lawyers are no longer with the company,” said Millikin, paraphrasing CEO Mary Barra’s assertions made during the first round of Congressional and Senate hearings last spring.
There were calls for Millikin’s resignation over the handling of the ignition switch matter, which GM’s legal staff had known about since 2007, but he maintained that he did not know of the serious problem until February of this year. Senator Blumenthal, in particular, said Millikin’s answers lacked credibility. He said that GM was served poorly by his continued employment. “Right now, the buck stops at an empty desk,” he said.
GM is under investigation for the fatal ignition switch cover-up by the Department of Justice and The National Highway Traffic Safety Administration. It is possible that there will be more at other agencies, say, the Securities and Exchange Commission?
Furthermore, the hearings aren’t over. The National Highway Traffic Safety Administration will be called in front of the Senate sub-committee at some point. Whether GM executives will be back then, remains to be seen.
