Tough Talk from the CEP

By Mark Evans | Published: March 5, 2009

The Communications, Energy and Paperworkers Union of Canada took a shot today at companies “hiding behind bankruptcy legislation” so they can avoid paying employee severance. Here’s the press release:

OTTAWA — The president of one of Canada’s largest unions has some harsh words for corporations that are hiding behind bankruptcy legislation to avoid paying their employees severance.

Dave Coles, president of the Communications, Energy and Paperworkers Union of Canada, says one-time telecommunications giant, Nortel, “should be ashamed for reneging on signed severance agreements with its laid off workers while paying off its big-business creditors first.”

“These employees gave Nortel its good name, stood by the company in bad times and were promised they would be treated fairly.”

Coles is speaking out on behalf of Nortel workers already laid off and of hundreds of other Canadian Nortel employees who will be laid off in coming months without any severance whatsoever.

He believes the laid off workers have been far too polite in their correspondence with their ex-employer. [The group has written two letters to the company, which can be found here: http://rscne.wordpress.com.] Coles believes that that is probably because their severance agreements prohibit them from speaking negatively about the company.

“Not only are they being treated badly by a greedy employer, but they have had their own mouths duct-taped shut.

“Very little is being done to protect workers who are the victims of this recession,” he adds. “The federal government should step in now with a stimulus package for workers, not just for banks and big business. And it should ensure that companies like Nortel are forced to pay their employees first, not make them go to the back of the line.”

“Aside from the moral argument,” says Coles, “the corporate community is doing itself a disservice by giving workers in the high-tech industry the back of the hand. It is sending a signal that R&D is not valued in Canada, and knowledge workers will pick up on that cue very quickly.”

Coles notes that thanks to the labour movement’s hard-fought amendments to Canada’s bankruptcy legislation, which came into effect last July, the collective agreements of unionized workers cannot be altered and any severance provisions are protected. The layoff at Quebecor World, also under bankruptcy protection, is a case in point, where CEP members received the severance they were entitled to under their collective agreements.

CEP represents workers in the telecommunications sector, and is the largest union in other key sectors or the economy, namely forestry, energy and media.

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  • Nortel_or_Enron??

    Your Videos received their just due in the Raleigh News & Observer Paper today. Keep up the good work my friend.

    http://www.newsobserver.com/business/story/1431…

  • exnt2

    Canadians are the most civil.

  • felixmk

    So now the unions want to take advantage of Nortel bankruptcy? Sweet!

  • nowexse

    It's more than just severance that they are messing with. Yesterday was a day of many cuts. Many in the Enterprise business that was supposedly ok. And many in sales. Let me detail a few things that I found out yesterday after being cut.

    1. They will pay for unused vacation time, but not until the 27th payroll.
    2. According to Hewitt, 401k's are frozen for 30 days on Nortel orders.
    3. Sales commissions for Jan/Feb will not be paid until April … at the earliest!

    To make a long story short, customer facing Enterprise sales teams were hit yesterday too. And not ones that were underperforming. I know of one account team, both sales rep and engineer, that were let go yesterday that were only at 140% of their assigned quota for '08 and had grown business in their marked >200% year over year. I thought they were supposed to be keeping people that were making money, not cutting them.

  • painInTheNeck

    “They will pay for unused vacation time, but not until the 27th payroll”

    Are you serious? Is that only for the US? I was cut on Monday in Canada and all my letter says is “All accrued but unused vacation will be paid out in compliance with Company policy”. I had over a month vacation accrued, that would be adding insult to injury.

  • nowexse

    When I called HR yesterday, that was one of the questions that I had. Was told “it would be paid in the pay period following the one that you are currently in. Which in this case is the 27th.” I was steamed. And even more so when told I can't do anything with my 401k for at least 30 days!

  • nt_employee

    Vacation time payout is delayed likely because the next payroll has already been sent to Probusiness for processing. Also, not unusual for sls comp to be paid 2 months in arrears (it always has been that way).

  • Many

    :)

    Don't forget to enroll him in every MLM and Mass Mailing you can find. Hair Club for Men, Diet Plans, Vacation Condos, Penny Stock funds, Male Enhancement Schemes etc.

    Donate money to a Edinboro University http://www.gofightingscots.com/ rival in his name (especially a swimming rival), and get him on the mailing list

  • exnt_x_2

    They sucked you in. You let them. That's it. That's all. Move on.

  • exnt2

    thats because they were out there too busy making money while some useless no good JCI5 or JCI6 was french kissing the boss's ass.

  • exnt2

    send him a model of his dream jet. and maybe in DeskJockey's honor send him a nazi suit with Z instead of the swastika. maybe all you peons should wear them to work.

  • 4merEmployee22

    In Japan, executives who commit wrongdoings and willfully mislead employees are oblige to take the 'honorable exit' by doing the honor of “HARAKIRI”!!!!
    Yes, Canadians are the most civil! That's why I became one!

  • scalpcutter

    Perhaps I was a little haste in my analysis.
    Yes there are good, hard working deserving JCI4's at Nortel.
    I won't dispute that.
    You should also recognize that alot of people below that level bust their butts just as hard, work hard and also take on any challenge resulting in success.
    The fact remains that right now Nortel is specifically culling JCI4's and above as primary targets due to the large salaries they demand.
    In the current environment you can dump 1 JCI4 and keep two
    JCI's or JC2's who contribute as much or in many cases more depending on the line of business one is in.
    I would not feel very comfortable at Nortel these days if I was a JCI4 or greater and not part of the keip, kerp or clique.
    It all comes down to what line of business you are in. What the LOB bottom line is and what their budget, debt and short term future potential value/growth metrics are like.
    Simple as that.
    In that environment Nortel will be quicker to cull people who have a high salary.
    Simple Math.

  • exnt_x_2

    “That's why I became one!”
    LOL. You're just another immigrant taking jobs away from real Canadians. Something you'll never be.

  • scalpcutter

    I agree. His type should get the ***k out.
    Lock the doors. Close the Border.
    You don't get in unless you sign a legal form agreeing to conform to Canadian laws and customs.
    You can't use the charter to abuse the system.
    Immigrants need to know it is a priviledge to get into Canada, not a right.
    Stop outsourcing now.
    Canada needs nationalism.
    New immigrant males must do mandatory military service.
    In Afghanistan. Fighting for Canada, not the Taliban.

  • scalpcutter

    And there are alot of them still there.
    Make no mistake about that.

  • whatnext4nt

    It is very bizarre that Canada has provincial employment laws that specifically state that insolvency is not an exception even though this is clearly not the case. The “explanation” is that CCAA is a Federal act and supersedes provincial laws. Why does Canada have such laws then? What does the Canadian Constitution say about this?

    Time to take this to the Supreme Court of Canada!

    Lawyers will be motivated based on the notoriety of the case and getting a chance to make legal history, in addition to contingency fees.

  • 4merEmployee22

    Who will initiate to take them to the Supreme Court of Canada???

    Will it be the big CAW or the CEP unions???
    Could I, as an individual, take them to the Supreme Court of Canada?

    Am not a former Nortel employee BTW .. am a RETIREE!!! , a PENSIONER
    whatever?

  • InTheField

    Trust me, I am aggressively looking for a job regardless if I'm in their little KERP clique or not, which I certainly don't expect a dime from anyway. I'm no “I believe” kool-aider, except for “I believe I'll find another job.” It saddens me and angers me what has happened to NT as far back as at least the accounting scandal. “I believe” every one of these execs and BoD members are to blame, and hope bad kharma on them for everything they've done! And shame on me for being here so long believing us good people could overcome those execs and BoD folks.

  • painInTheNeck

    I am no expert but this might be the same as the case of Rizzo & Rizzo Shoes Ltd. where the supreme court ruled “…Rizzo's former employees are entitled to make claims for termination pay (including vacation pay due thereon) and severance pay as unsecured creditors.”

    http://csc.lexum.umontreal.ca/en/1998/1998rcs1-…

    http://www.sgmlaw.com/en/about/RizzoRizzoShoesL…

    So you are entitled to it but you are just another creditor.

  • yes4aapl

    Am not a former Nortel employee BTW .. am a RETIREE!!! , a PENSIONER
    ====
    re
    So talk as the pensioner.
    You are the lucky one, my friend.
    In which country you live?
    It's important for talking.
    In GB pensioners are protected.
    In Canada they also are protected but not so much.
    In Nortel's case Pension Fund lost about 40% of it's value due to a stupid law (I don't remember federal or provincial) that the pension funds can be kept in equities_the stock markets.
    The law was based on a crooked assumption that you can win if you play! Next moderation would be that you can use pension funds in Las Vegas casinos!…. sorry… it won't happen because it is very clear gambling…
    To make the story short, my friend, Pension Fund pushed Nortel into BK and it's a good thing in all the events related to Nortel.
    I have just noticed that Nortel lied to the Pension Fund with the all promises of recovering the value.
    Today you would be eligible to 60 Cents on a Dollar but in some new circumstances you can get as much as 75% or more…
    Lets hope you will get 100% my friend… Maybe Canada is not so bad for own citizens …. let's hope…
    So how much you know about pensioners of Nortel, my friend?
    Can you share a bit?

  • exnt_x_2

    “Am not a former Nortel employee BTW .. am a RETIREE!!! , a PENSIONER”

    No need to shout, dude. Just get in line like the rest of us.

  • stevebernal

    there is a similar situation…..i worked at HJ Jones est.1913 and shut down in 2008.The investment firm bought us and dropped the number of employes to under 50 so they could use provincial law to avoid severance.There was 2 locals under the CEP umbrella in the building.517 and 100g.517 have just won half of their severance and 100g members got nothing!!!!The 13 members of 100g had amassed almost a 150 years of service with the senior man 43 years.100g was not even involved with the talks and is ignoring our emails of frustration

  • stevebernal

    there is a similar situation…..i worked at HJ Jones est.1913 and shut down in 2008.The investment firm bought us and dropped the number of employes to under 50 so they could use provincial law to avoid severance.There was 2 locals under the CEP umbrella in the building.517 and 100g.517 have just won half of their severance and 100g members got nothing!!!!The 13 members of 100g had amassed almost a 150 years of service with the senior man 43 years.100g was not even involved with the talks and is ignoring our emails of frustration

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