Sunday, November 28, 2010

Canadian Bill S-216 Voted Down

As noted on the NRPC Website

Friday, 26 November 2010

Senator Eggleton's Bill S-216, which would have given preferred status retroactively to the claims of people on long-term disability in the bankruptcy process, was voted down in a Senate committee yesterday, Nov 26th. Senator Ringuette's Bill S-214, which would give the same treatment to pensioners, likely faces the same fate in the next few days.

Federal Minister John Baird is quoted in the press as being against Bill S-216 because the retroactivity clause would have been "unconstitutional". NRPC believes he is wrong on that front since the government has already made similar changes to the Wage Earner Protection Program in 2009 and for Canadian banks with Asset Backed Commercial Paper problems in 2007.

The NRPC believes that all former employee claims deserve preferred status in bankruptcy court - both LTD and pensioners. We will continue to fight for justice in bankruptcy including legislative changes which would protect all existing and former employees of Nortel.

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