Judge agrees to amended agreement.

The following news release was published on the NRPC web site at 3:30-pm today.

It means the pension will continue until September 30th, and Health and Welfare benefits in Canada will continue until the end of 2010 as well as payments to LTD people. Terminated people will also be paid $3000 severance as an advance on their claims.

After that we are on our own.

I don't know if the agreement will have any bearing on US health benefits.

The indications from the annoncement are that if the Canadian BIA is amended in favor of retirees, the judge would not allow Nortel to switch into the BIA process and would have to liquidate under the CCAA. That's my reading. What a crock!

In other words, if Canada alters the BIA to help pensioners get priority to claim what is rightfully theirs, we Nortel retirees will not be allowed to excercise that right. It also means that all other companies going bankruptcy would probably try to liquidate under the CCAA instead of the BIA and deny pensioners the right to a higher priority.

It's a good old boys Canadian Club!

Media Release: For release at 3.00 p.m. on Wednesday, March 31, 2010

NRPC relieved that new Settlement Agreement is approved; will continue to fight for changes to bankruptcy laws.

OTTAWA: The NRPC is relieved that the presiding judge in Nortel's bankruptcy proceedings today approved the amended Settlement Agreement between Nortel and representatives of its retirees, terminated and long-term disabled employees signed on March 29, 2010. The agreement postpones income cutbacks and benefit losses until later in the year for Nortel's former workers and provides a payment of $3000 to terminated employees who received no severance.

Last week Judge Geoffrey Morawetz ruled that he would not approve the previous version of the Settlement Agreement because of a clause that he deemed to be unfair to other creditors. The controversial clause would have preserved the right of Nortel's former workers to claim preferred status if Canada's bankruptcy laws were to be amended prior to Nortel's final liquidation. It has now been removed.

"We are not giving up the fight to change Canada's unjust bankruptcy laws!" said Don Sproule, National Chair of NRPC. He added: "The judge's earlier ruling indicates that since Nortel and other creditors will object, he would not allow the bankruptcy to move to liquidation under an amended Bankruptcy and Insolvency Act. Our campaign at the federal level must now aim for retroactive legislative changes which could be applied to the current situation".

NRPC will also continue its efforts to persuade the Ontario government to establish a Pension Agency, in line with the recommendations of the 2008 Ontario Expert Commission on Pensions. The Agency would take over and run abandoned pension plans instead of using the remaining assets to buy annuities for retirees. The Nortel pension fund is significantly underfinanced and winding-up the plan to purchase annuities would further reduce pensioners' incomes.

Judge to review amended agreement tomorrow

This is the latest message posted on the NRPC website. So tomorrow the judge will review the amended agreement and issue a decision.
I hope he doesn't take 3 weeks to decide like last time.


Tuesday, 30 March 2010
Our legal representatives met with Judge Morawetz today, March 30th, to advise the judge that they had signed a new settlement agreement without the H2 clause to which he had objected. A motion to approve the new deal will be heard by the judge on March 31st. See the Koskie Minsky LLP website for further detail: http://www.koskieminsky.com/Case-Central/Overview/Status-Of-Case/?rid=107.
Last Updated ( Tuesday, 30 March 2010 )

Amended Canadian Agreement

The following was posted on the Koskie Minsky web site this afternoon:

The Court-appointed Representatives for the Former Employees, the Court-appointed Representative for the employees of Nortel on long term disability, and Representative Counsel Koskie Minsky LLP, executed an Amended and Restated Settlement Agreement, which will ensure the continuation of health, dental, life and income benefits through 2010.

A motion for court approval of the Amended and Restated Settlement Agreement has been scheduled for March 31, 2010 at 10:00 a.m. at 393 University Ave.

Court materials will be posted on the Monitor's website at www.ey.com/ca/nortel as they become available.

My Note:

This whole process isn't democratic at all.

Why is a small group making decisions for this large group of pensioners and LTD
people without first getting their input?

If this was a union I expect that any agreement, or proposed position on
negotiation, would be put to a vote amongst the full membership before going
ahead with it. This may be called representation, but it is does not necessarily
reflect the majority opinion of the full group at large.

I think the people leading the NRPC are trying to do their best, but early on,
we should have required some rules of representation and decision making by the
NRPC, as our representative council, in order to make sure that they truly
reflect the majority opinion.

Unfortunately there doesn't seem to be a clear process for that.