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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  • fatzoff

    I hope the MOD let's this post remain
    for all the employees that have been shafted by Mike Z and would like to express their true feelings here is the Mike's home address

    ROBIN GALE ZAFIROVSKI
    MIKE S ZAFIROVSKI
    1291 N GREEN BAY RD
    LAKE FOREST
    ILLINOIS 60045

  • NortelSouth

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  • FedFan

    Two wrongs don't make a right !

  • gone2moro

    David Coles probably understands the power of collective bargaining of unionized labor. At NT it's every beaten down and defiled man for themselves. We, the down trodden are simply collateral damage in the aftermath of a nuclear implosion that is Nortel's bankruptcy.

    You've got to go way down the food chain at NT to find a person who care about people…. they would be the non executive line mangers. The executives don't care and this would include the product General Manager's and Major Account Executives.

    The shame… goes far beyond severance renegging. A hunk of the NT cash is from deferred income of people who put their pay aside for furture use. Pay they earned and was due.

    And NORTEL STOLE FROM THEM. A felony by any person who would commit the same crime.

    But delcare chapter 11 and the money God forgives their trespasses.

    How did we get here?

  • DRP666

    Finally, ….someone else that thinks the lack of severance is a crime. Let's hope the union can help put pressure on the politicians to resolve this unjust situation for those recently layed off employees.

  • disc64

    Somebody should inform him of the faustian bargain we made – that we all gave up the security a union could provide so that we wouldn't be constrained in our upward mobility. LoL. I'm surprised he even gives us any consideration at all.

  • slk

    Personally, I don't think Nortel can ever recover as a company. Even IF it manages to come out of bankruptcy protection, the crass and selfish actions of the CEO and VPs have completely lost the employee confidence. There is only one reason that most Nortel employees are still showing up for work: in this economy, there is nowhere else to go.

  • AnotherSlave

    I haven't been around unions in a pretty long time, like the 1960's, but back then they supported each other pretty aggressively. I wonder how many of the people that install and support Nortel equipment are union members.

  • Asset_Number_XXX

    Vote for “Say on Pay” – http://www.unionvoice.org/campaign/paywatch_say…

    Although non-binding, three canadian banks (RBC, National, CIBC) are already submitting to shareholder input on executive pay.

    SHARE – an NGO supporting pension plans and unions – lists Nortel among companies already targeted for “Say on Pay”. See list at the bottom of this doc. :
    http://www.share.ca/files/2009_ProxyAlert_2_Say…

    You can also rate and comment here – http://www.hotstocked.com/officers/m/mike-sveto…

  • WootWoot

    The ultra selfish and short sighted actions of the current Nortel's executive leadership is an utter mark of professional disgrace!!! Shame on Mike Zafirowski, Richard Lowe, Pavi Binning and the rest of the executive cohorts!!!

    You have shown how hollow your management and moral principles are, and how two faced you are when it comes to treating employees.

    You are taking advantage of the helpless employees who unfortunately have no where to go and seek help, while you try to enrich yourself with your KEIP/KERP plans. You are decimating your North american employe morale, decimating them and their families financially, subjecting them to ultra levels of stress and insecurity.

    The Canadian government , Canadian media and public is also standing by watching all this EXPLOITATION without any care. What a shame. Canadian management is now getting to be on the same moral footing as any savage dictator in a third world country.

    Too bad the current and recent ex-Nortel employees have no legal options, and have to suffer this humiliation, injustice and EXPLOITATION in silence.

  • Nortel_or_Enron??

    Will it help if this article is pushed to the Wall Street Journal and other main stream papers here in the states? I am certainly going to forward this on to them as stories of the crooks at Nortel are getting exposure on local stations these days.

  • DRP666

    I think that is a great idea. Maybe forward it to the AFL CIO president. He was the one that helped Worldcomm employees get their severance back after putting pressure on the company and creditors

  • Golfball

    I don't have my severance agreement in front of me (US-based, the Canadian agreement may very be different, and/or my recall could be faulty), nor am I attorney (in any jurisdiction within the US or Canada), but would the severability clause (if any) apply here? Since the previously agreed-upon severance/benefits are no longer being provided, is the resulting remnants of the contract unconscionable? Might be worth having an attorney look it over, at least.

  • Nortel_or_Enron??

    I have emailed the WSJ and would encourage others to email as well. In addition other papers like USA Today, NY Times are on my list as well. There is power in numbers and with the following of this website we can certainly grab an editors attention.

  • yes4aapl

    First of all.
    Question
    What was the real cause for Nortel to go belly up?
    I find two main reasons.
    1. False Accounting Books well documented now by all interested parties.
    2. Total lack of interest in Nortel by Canadian Governments on all levels.
    I found Canadian Government morally responsible for both cases.
    How was it possible to defraud public in Nortel case?
    Why Governments are still ignoring importance of that case?
    Why Nortel's employees in other countries have more rights?
    I think Canadian Gov should participate in solving some big Nortel's problems including employees rights to fair treatment.
    Let me remind you that some questions are still unanswered.
    example
    http://www.youtube.com/watch?v=QIE3f9RUKoQ
    http://www.youtube.com/watch?v=-E7og6Rcsf8&feat…

  • scalpcutter

    Lots of holes in this statement from CEP, and even more hot air.
    Let's analyze it and pick it apart.
    First of all this is a union. What are they going to do for ex nortel or soon to be ex nortel employees. Nothing, unless you pay them and that isn't going to happen.
    Even at that they can't do anything.
    Are these wannabe underpaid lawyers?
    Secondly do you really think the nortel BOD, execs and overpaid managers are ashamed? Why not ask John Manley how he feels?
    Promises are for suckers and little kids.
    And what does mister cole mean people are too polite with their letter writing due to severance agreements prohibiting negative feedback.
    What?
    Dave..there is no severance. Vacation pay. That's it.
    What is there to keep an employee honest when they are laid off?
    Nothing that's what. There are no repercussions.
    An employee, ex employee or soon to be ex employee can say whatever
    they want whenver they want. They can't be held to anything.
    When people got packages, notice etc it was different. Those rules don't apply
    now.
    He has no idea what he is talking about.
    What about people ranting on blogs anonymously dave.
    Is that dangerous?
    You think writing a nasty or letter looking for sympathy will make any kind of difference. Grow up. It's all about money and it's all about the company name surviving at all costs, with bankruptcy a last resort.
    Everyone is replaceable and just a number.
    And the feds stepping in?
    Good luck. Listen to Manley, McGuinty, Harper.
    There's no help coming.
    Dave says aside from the moral argument, and we know nobody cares about that, the corporate community is doing a disservice.
    Dave!!! The canadian federal or provincial government do not care about high tech in Canada or Ontario. Ask terry matthews or john manley, or dalton mcguinty.
    And dave has the nerve to trumpet how unionized employees cannot be treated like this? Newsflash Dave, Nortel does not have a union.
    Are you going to organize one at the remaining campuses that have below.
    This is ridiculous.

  • scalpcutter

    The canadian government don`t care.
    They would care more if this was a quebec issue.
    They would care more if it involved muslims, new immigrants or perceived human rights infringement against new canadians.
    Nortel employees can`t wave the charter in hand and use it to their advantage like other segments of society can.

  • scalpcutter

    good luck.
    Break out the signage on parliament hill while you are at it.

  • scalpcutter

    Laws are made to be abused and broken.
    Same with Rules.
    Just ask the guy who cut somebodys head off with a hunting knife but pleads
    insanity and gets off.
    Welcome to Canuckistan.
    Teach your children well.

  • http://nortelinsider.wordpress.com/ Desk Jockey
  • DRP666

    Funny as usual…Starsky and Hutch…ha. Almoast as funny as scalpcutter's (aka baldy) rant about unions….touchy aren't we. The poetic justice is that Slattery is now a GM for Cisco….guess he's doing well.

  • Another_Nortel_Watcher

    CEP is just as bad as the current Nortel BoD. Unions are parasites and CEP is no different. This publicity is simply to further their own causes and perhaps to sniff around for an opportunity to feed off of the Nortel carcass.

  • Another_Nortel_Watcher

    Good job. Keep 'em coming!

  • DRP666

    Interesting article about how unions helped Worldcomm get there severance back…don't think they go anything back but a thank you. Maybe there are some decent people out there and people on this blog shouldn't be so quick to criticize….at least do some research before doing it.

    http://washington.bizjournals.com/washington/st…

  • scalpcutter

    Think before you post.
    Those people WERE UNIONIZED when their company went into bankruptcy
    protection. Nortel employees ARE NOT!!

  • scalpcutter

    Absolutely.

  • protosphere

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

    Nortel, “should be ashamed for reneging on signed severance agreements with its laid off workers while paying off its big-business creditors first.”

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

    _______________________________

    Just as we have argued isn't it? Always appears in the media later…

    Cut employees, cut their severances, gag them but the heads can trade options for cash…again

    Ebbers and Skilling must be heavily medicated for uncontrollable laughter witnessing these endless punch lines from shareholder's ultimatum settlement they also called “fair” from $30 to 8 cents, following by downplayed mega revisions that doubled, to claim mark-to-market-profits on the tanked shares as a result, desperate slandering Cisco Tax green campaign, great buying opportunities, to more recently downplaying bankruptcy to this… it is so endless we can fill pages…. endless I tell ya… what a riot.

    ah Nortel,,,, still unrepentant thinking you can do what ever it wants

    …and there is more, like the looming Fraud trials with so many still there and DOJ all ears… I wonder if they will need than new $100M in lawsuit insurance they just took out and what the premiums are =)

  • DRP666

    Do some research “baldy”. Here's another article….can you say …g-o-o-g-l-e. Here's what it says…look for the NON union words.

    Here's your chance…..still afraid …need to protect your job……don't want to get your hands dirty…..now someone else can take on Mike Z for you….since you won't do it for yourself…..and he's not asking for a thing.

    The biggest union federation in the US is backing more than 4,000 non-union ex-employees of WorldCom in their fight for $36m in severance pay.

    http://news.bbc.co.uk/2/hi/business/2249546.stm

  • protosphere

    ditto

  • scalpcutter

    You really are showing your stupidity here.
    Going to “bat for” or “backing” people are just words.
    It means nothing. Just another cash grab by unionists posing as cheap lawyers. Read the last paragraph from the article you quoted and wake up!!
    I don't think you have enough intelligence to post on this blog.

    “Beyond that, those owed severance pay are at the back of the queue when a company goes bankrupt, with holders of WorldCom's bonds, such as Deutsche Bank and AOL Time Warner, taking precedence.

    Most of the 4,143 workers involved in the suit have yet to receive any money, according to court filings – not even the $4,650″

  • protosphere

    Pat asked, why do they let their buddies on Bay Street regulate themselves”

    A CBC journalist buddy told me because it is like the “chicken looking after the hen house”, “the OSC does not want to put their pals in jail” and there is no finer avenue for a lawyer to risk his career than joining the OSC and trying to do the right thing, citing a lawyer who was ousted to Montral from Toronto and was only by shear luck left unscathed.

    The OSC head makes a multiple of his SEC counterpart! Nortel's CEO made more than BCE's. They hire top guns like Owens and Manley to hide behind, it is endless…

    Is anyone friggen listening! What do we have to do?!

  • scalpcutter

    Hey Satan…Why don't you get the ***k out of here and go pound yer pudding. Another punk kid.
    You and grim creeper.
    Go draft a letter to the CAW, get out protestor john lennon placards and mind your own business.
    If you truly care about the fate or misfortunes of ex nortel employees or soon to be ex employees do them a favour and ***k off.
    You say nothing that makes any sense and you have no realistic suggestions for people.
    You just blab like john candy in trains planes and automobiles.
    Don't run as a politician whatever you do.
    You wouldn't stand a chance
    You are about as motivational as a rusty nail.
    ***hole.

  • 4merEmployee22

    This will become a case of “My Lawyer can outsmart your Lawyer”
    I wonder what the Legal Eagles of CEP are up to, in collision with
    the Monitor, E & Y Inc. ?
    This bankruptcy protection case is before a Provincial court and State court.
    So, Nortel will just say “talk to our Lawyers!!!”

  • scalpcutter

    No kiddin.
    I bet this keeps them sleepless at night eh?

  • DRP666

    You are so funny “baldy”…I really get a laugh out of your rants :)

  • DRP666

    Such a funny guy..wonder why he doesn't quit his day job and become a comic…

  • scalpcutter

    ha

  • scalpcutter

    okay church lady.
    whatever you say.
    got those placards ready yet?

  • joremero

    Mark,
    How about starting a thread purely with rumors about what will happen with NT? rumors are fun :P

  • Hotwheeler1

    Where is Judge Judy ?!!!!!!.

  • SadN

    FYI: TO EMAIL the banrupcty judge, overseeing the KERP and KEIP incentives. Chambers_of_Judge_Kevin_Carey@deb.uscourts.gov

    Or Call Delaware Attorney Generals office. @ 302-573-6538

    Call the US BANKRUPTCY COURT in DELAWARE,302-252-2900, Case 09-10138, and let them know your opinion, If you want to have a say, here is your chance. Kevin Carey is the Chief Judge.

    Call or Email your Congressman, N.C David Price

    Fax your comments AND INFORMATION to Obama at the WHITE HOUSE @ 202-456-2461 ATTENTION PRESIDENT OBAMA

  • SadN

    Does anyone have documentation to prove JCI 4 and above is mostly Management? The Attorney General said the Leadership team indicated the KERP was for all levels of Nortel employees. If I read Docket Number 389 correctly Page 8 and 9 indicate anyone under a JCI 4 is not eligible. Does anyone know how to get the information on 4-5and 6 JCI and their Job complexity description? If so it needs to be sent to the judge over seeing this filing for the incentive the courts were asked for.

  • exnt_x_2

    Oh for God's sakes give it up already. You got screwed, royally. Deal with it and move on. Just stop the wailing of how unfair it all is for you.

  • Casual_Observer

    Does Z have security 24/7 ?

  • exnt_x_2

    OMG! You've found the solution!

    Nationalize Nortel. Yeah. That's it.

  • FalseProfit

    For those of us left, let's have some fun with it and pull some harmless pranks like:
    -order a bunch of Pizza's under Mike Z's name to the front desk
    -put up signs on bulletin boards announcing Special meetings – but no KEIP eligible employees are allowed to attend
    -sign up Mike Z and his email for every “Win a free Trip” contest from gyms or time shares
    -sign up Z-Man for Tai Chai lessons or respond to Dog Walkers adds indicating you need a dog walker using Mike Z man's phone number
    -order a Clown to deliver a Singing telegram to Mike Z in the lobby of the West Mall location (pay cash – no identity revealed)

    Anyone have any other interesting or fun pranks we can pull. Do they still have a service to deliver pranks like roses with only stems?

    I would personally buy a pizza lunch for anyone willing to join me in a conference room for free food but there will be a sign that says no KEIP eligible employees welcome!

    Cheers

  • scalpcutter

    Do it.

  • scalpcutter

    JCI4 and above is not necessariy overpaid management.
    It consists of demoted managers who still get the same pay. They may not officially be managers anymore. That is probably the biggest injustice.
    It consists of rank and file who are getting much more than they are worth and got to that position through the old boys club, sympathetic and generous managers who liked them for one reason or another even though they really did Jack S**t and had no real clue what they were doing.
    It consists of architects and senior designers who are making no real contribution but collecting huge paycheques.
    So No JCI4 and above may not mostly management over there anymore
    It use to be.

  • InTheField

    I'm a JCI4 rank 'n file that has been with NT for 13+ yrs, & don't appreciate your post. I've busted my butt every day here, am a hard worker, & will take on any challenge. I've worked all customer-facing positions & have been very successful. Don't lump me in with your anger & bitterness. I'm just as angry & bitter about NT, too, but I”m not going to apologize for being as succesful as I was. See if you can sound intelligent by not using curse words.

  • SadN

    That is so funny, I would love to see his face if we had a clown do a sing a gram to him. What would our song be? I’ll help pay it!!! I don`t think Z and his cronies think we have enough Guts to say your wrong in what your doing and the way you have run this company into the ground, he is dealing with some very intelligent people and he insults our intelligence everyday. Does anyone have the information about the incident with Hackney where Nortel overlooked the incident? We need to send that to the Judge and ask him does he deserve a Bonus…

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