Friday, June 4, 2010

Canadian Court of Appeal decision on Nortel LTD case

The following was released by Koskie Minsky June 3 2010.

The Court of Appeal released its decision today denying leave to appeal on a motion that was heard in writing on May 31, 2010. A group of individuals sought leave to appeal the March 31 decision of the Ontario Superior Court of Justice, which approved a Settlement Agreement reached by various parties on March 30, 2010. The Settlement Agreement provides for the continuation of LTD income, medical, dental and life insurance benefits through 2010, and also for a lump sum payment as an advance distribution to certain eligible terminated employees.

In my opinion the LTD employees should have been treated differently to retirees and ex-employees. LTD employees are essentially still part of Nortel until they are terminated. They have been lumped in with retirees and others and have not been given any choice to have separate representation by the court. Their specific needs have been overshadowed by the pensioners and they have not received reasonable treatment by the courts, by the government, by Nortel, by the NRPC, and by Koskie Minsky.

We retiree stand to lose 30% or more of our pensions. LTD people may lose their lives as a result of the agreement struck earlier this year. Their benefits will stop entirely as of Jan 1 2011 except for some miniscule payments from a totally inadequate trust fund.

Nortel and the Canadian Government are at fault in not ensuring that a proper hands off trust fund was established so that LTD people could continue to live with proper support until they can draw a pension. This is shameful treatment of people who deserve better than this.


  1. Thank you for this clear post about a horrible situation.

  2. I am one of those LTD directly affected.
    My story was told on CBC two weeks ago.

    This situation has left some of us in a horrific situation right now. Some are truly stressed to death worrying about what will in six months.

    Frankly, if a 15 year old understands this immediately, I am not sure why there is so much discussion.
    I paid my premiums, Nortel made a promise - so keep a Trust! If they won't honour their Trust, then they shouldn't offer it! Simple.
    The executives found $470 Million in incentives and bonuses, on top of their salary - but not a penny more for their stranded disabled.
    The disabled were told that we "had to make sacrifices too". That looks callous when the junk bond holder get 160% of their investment.

    Peter Burns
    Disabled Employee of Nortel

  3. Thank you for your support and understanding. Not only do we lose most of our LTD income, but we also suffer the pension loss. And in Alberta, we will suffer that pension loss fully and even more as we are deferred pensioners who will most likely get taxable annuities of a low commuted value of a pension that will not be backstopped or left open as in Ontario or Quebec. The government also is abusing our human rights, which we are also addressing. These oppressive laws and bankruptcy courts need changing for all LTD and former employees. Janice Dignum, spouse of Nortel LTDer.