Nortel deal buys pensionsers little time

OTTAWA – By accepting the deal announced today, former Nortel employees have made a big sacrifice, but there’s still time for the government to do the right thing and take action to save their pensions, says New Democrat Pensions Critic Wayne Marston (Hamilton East-Stoney Creek).

“Because Stephen Harper prorogued parliament, Nortel pensioners had to give up their right to seek recourse to protect their pensions,” says Marston. “Today’s deal buys Harper some time to finally step up and do the right thing. He must address the shortfalls in the Bankruptcy Act immediately, otherwise it will mean financial destitution for tens of thousands of Canadians.”

In the deal announced today, Nortel pensioners dropped their appeal to the Supreme Court and gave up their rights to sue Nortel and its directors over the administration of the pension fund in exchange for new funding that will protect their pensions for several more months. Under this deal, current pensions will end in September, with all other benefits ending in December.

New Democrats have presented a plan that could save the pensions of former Nortel employees in Private Members Bill C- 476, also known as the Nortel Bill. This legislation would put workers’ pensions ahead of other creditors and executive bonuses when a company fails by closing loopholes in federal bankruptcy laws. The bill would ensure companies make good on their pension obligations and put workers at the table, alongside major creditors, to take part in restructuring talks when a company files for bankruptcy protection.

“Stephen Harper is forcing these pensioners into an increasingly desperate situation with each passing day,” says Marston. “We know how Harper can save their pensions, and thanks to the sacrifice of the workers, he can do it before they are left with nothing. The Prime Minister has a moral obligation to act – pass the NDP bill and save Nortel pensioners.”