Pension crisis can’t wait for Harper’s vacation

TIMMINS -- Stephen Harper’s decision to shut down Parliament could have devastating consequences for underfunded pension plans, say New Democrats. In particular, Abitibi and Nortel pensioners need action immediately to address changes to the Bankruptcy Insolvency Act (BIA). If either company slips into full bankruptcy before Harper reopens Parliament it would mean financial destitution for tens of thousands of Canadians.

New Democrat MP Charlie Angus (Timmins-James Bay), who has been meeting with Abitibi and Nortel pensioners, says they have been completely abandoned by the Harper government.

“There is a pension crisis in this country. Abitibi, Nortel and CanWest workers represent the tip of the iceberg. The New Democrats have tried to work with this government to move quickly to address the shortfalls in the Bankruptcy Act. This two-month shutdown of Parliament could destroy the pensions of families across Canada,” says Angus.

The changes to the bankruptcy act are laid out in NDP Bill C- 476, also known as the Nortel Bill. This legislation would amend the BIA (Bankruptcy Insolvency Act) to ensure that underfunded pension liabilities will be treated as preferred creditors in the case of bankruptcy. Abitibi and Nortel are in CCAA protection now. If they fall into full bankruptcy before Parliament has a chance to change the law, pension funds will be devastated.

"This is an issue that extends well beyond AbitbiBowater and Nortel. With hundreds of companies filing for bankruptcy every year, retirees anywhere and at any time can suddenly find that their pension has been suspended or dramatically cut,” says New Democrat Critic Wayne Marston. “This government must move quickly to change Canada's bankruptcy laws so that pensions are protected."

Angus says the pensioners are fed up.

“People all across my riding have expressed their disgust with Harper’s two-month vacation. But no one is as frustrated as the pensioners. Given the precarious state of their finances, they simply can’t afford to wait while the Tories goof off at the Olympic galas.”

Angus says he is returning to Ottawa on January 17th for a caucus strategy and planning meeting and will continue to push for action on the pension crisis.