Sunday, November 14, 2010

Pension Protection after Company Bankruptcy

The following eye opening chart and commentary was posted on the NRPC web site.

Why isn't Canada taking some steps to protect our pensions? We are not asking for anything that isn't already recognized in civilized countries...

Canadian ideas and initiative turned Nortel into a global leader in telecommunications. In opening the global marketplace, Nortel had to establish R&D and sales operations in many countries. Now we find, as Nortel plummets into bankruptcy, that our Nortel colleagues in other countries are well protected by their governments while former Nortel employees in Canada will suffer drastically. Many countries have pension guarantees when a company goes bankrupt that ensure that pensioners can get a fair share of their pension/deferred wages. Other countries ensure that underfunded pension plans get a priority status in bankruptcy claims to protect those pension plans.

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