Hell No, We Won’t Go….to Ottawa

By Mark Evans | Published: June 11, 2009

Nortel has turned down a request by a Canadian House of Commons finance committee to talk about why it has slashed pension payments and not offered severance to ex-employees, while still offering bonuses to senior executives.

“As Nortel is currently in bankruptcy protection, all matters specified in the invitation are before the courts. Consequently, Nortel, nor its representatives, can comment on these issues beyond that which are already evident in court rulings, documents, and related motions,” Nortel spokesman Mohammed Nakhooda told the Globe & Mail. “Respectfully, Nortel on the advice of counsel, declines the invitation.”

If the Canadian government wants to focus its efforts on Nortel, maybe it should have spent more time a few months ago when the company approach the government for financial help. Nortel’s plea was rejected because its restructuring plans were unclear and unfocused. Even so, Nortel’s demise could mean the loss of thousands of jobs in Canada so maybe both sides should have worked a little harder to work something out.

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  • less

    Like one would find a headline reading “The Disgruntled are Desperate to see Nortel Destroyed!” on the cover of a Forbes mag….

  • less

    So if I had a malignant tumor growing behind my perfect 20/20 vision we should all just move on and focus on my pretty blue eyes.

  • yes4aapl

    If a person posts positive comments or positive speculation they run the risk of being attacked.
    TongueInCheek
    —-
    re
    It is you who wanted to gag posters defending their rights to talk about NT as the investment. You tried to fool investors so you would get your ill created bonuses.
    Millions of investors lost billions$$ in NT!

    Investors accused you and your CEO CFO of misinformation
    Read the new class action

    http://www.allaboutnortel.com/2009/05/26/anothe…
    or http://www.csgrr.com/cases/nortelcorp/complaint…

  • less

    But thats, well, diffeЯent, see!?

  • soundslikesourgrapes

    Not gonna happen Einstein.
    All the lawsuits and all the claims are now INNNNN.
    When they come out of Restructuring mode there won't be anymore in the courts or eligible for the courts.
    Think about it.
    Another Advanatage of BP.
    All the backlash comes out immediately.
    No grounds or room for stuff after the fact.
    And remember coming out of restructuring can mean one or a combination of these——->>>>>
    Sell out.
    Spin offs.
    Select businesses sold, close shop on the rest.
    Liquidation.
    Financing.
    Bail out.

  • broadbandbill

    Karma will, she's a real bitch!!! …–bb

  • yes4aapl

    I see, my friend…
    I see the pressure is mounting!
    read
    Toronto-area Liberal MP John McKay said he needs to hear from all concerned before drawing conclusions, but added: “It does seem to offend your sense of fairness that certain people seem to be doing very well out of a bankruptcy and others seem to be left holding the bag. Inarguably, they each made important contributions to the viability of the company.”

    Mr. Mulcair said public response to Nortel's situation is mounting and represents the strongest reaction to any issue he has seen in 15 years of politics.
    http://www.theglobeandmail.com/globe-investor/n…

  • soundslikesourgrapes

    John McQuack. Another Quack Lieberal. Walking in the footsteps of his pal Dalton Mc Guinea. No wonder we get spew after spew of garbage from you guessed it, lieberals. And they with Ignoid at the helm will likely be running the country soon. It is to laugh.
    I am convinced this government “invite” to mike and the boys was contrived by a bunch of lieberals trying to wear the white suit.
    Pathetic.
    I was glad to see Nortel give these goons the middle finger.
    That is about the only right thing they've done in all of this.
    I'll say it again. If the feds wants to do something useful they should make
    a guarantee that all CURRENT nortel employees only get a severance whether they are laid off or leave.
    That would be wise and appropriate.

  • Nortel watcher

    ITRE,
    if you haven't done it before, you will find telecommuting is a great gig especially when considering all that the company will take away from you if / when they lay you off…so, my advice to all you new telecommuters is to take care of as many personal matters on the company's time…when you get the boot, you'll be glad you did…but no one has it better , gig – wise, at Nortel than its few remaining expats, now that's the life

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

    This isn't surprising. The government's “finance committee” was nothing more than a staged event to make it seem like they care about corporate ethics. If the government really cared then Frank Dunn would be in prison rather than some legal limbo and being represented by John Manley's (biggest tool on the BoD) law firm. Instead he has remained relatively unscathed even after he defrauded investors and betrayed employees by tarnishing Nortel's reputation.

    If Dunn can escape then what hope do we have for prosecuting the current ELT? None whatsoever. If the government was serious, then they would bring these criminals to trial instead of asking them politely to show up at some meaningless media event where they have no legal authority.

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

    I agree with you, but currently this “committee” has no teeth. I would be 100% for a process that had legal authority to prosecute these thieves and lowlifes for their unethical behavior, even if there was little chance to get any money back for anyone.

  • soundslikesourgrapes

    You boys are dreaming in Technicolour.
    Momma don't take my kodachrome away.

  • S_O_S_This_is_HMS_Nortel

    The Canadian parliament will be in adjournment in 10 days until mid September…By the time it probably will be all over for Nortel. No need to subpoena anyone…

  • NortelGal

    I'm assuming SLSG meant “reinstate the *promise* of severance for current employees”. Before Ch. 11, we always thought we would have a paid notice period followed by a severance period based on years of service with the company based on the many years of layoffs that came before and the packages those former employees received. That's all over now.

  • Another_Nortel_Watcher

    I remind people once again that the Dunn scenario is entirely different. Even after all of the restatements, the bottom line is that Nortel was growing under Dunn's leadership. Dunn is vilified for releasing legitimate provisions on a schedule that would maximize reported profits – and bonuses. However, at this point the wrongdoing is still alleged because he hasn't had his day in court yet. All we have to go on is the say-so of the Nortel BoD and an assumption of guilt because charges have been laid. I will wait to see the outcome of the trial.

    In the case of Mike Z, the case is much clearer. Under his leadership, growth was destroyed and the value of the company was trashed. The results speak for themselves.

  • soundslikesourgrapes

    That's exactly what I meant.
    I thought that was pretty obvious with my statement.
    Let's hope all current employees get this guarantee.
    This is something the spineless gov't could back up with words
    and paperwork and ensure anyone let go or quitting going forward
    gets their severance, preventing Nortel from doing anything but
    following instructions.
    They deserve it.

  • Teleguy

    I agree. If the Gov't, or the Opposition, was the slightest bit interested in saving Nortel they would have made a move eons ago. These Committee star-chamber inquisitions only pad the resumes of the M.P.s asking the questions. Most of these people have no clue about business anyway. Dog and pony show only.

    And note that Dunn is making a pretty good living from being a consultant with one of Ottawa's top business consulting firms.

  • rfc1149

    Same in Canada. Ask you can say no, subpoena go or go to jail.

    However there is (formally) no 5th amendment type rights in Canada. You can refuse to answer a question from an MP but if the committee votes they can demand that you do. Then if you don't, they can send you to jail. There are then no grounds to not answer. The fact that this may be in court is not relevant nor if the information is self-incriminating nor one is forbidden by law to disclose it.

    Note though that anything said cannot be used against you in a court of law (so its not quite as bad as it at first may seem). Also one can ask that the meeting be 'in camera' but in Nortel's case since the point is theater that obviously would be denied.

    That said, this has not been used since (from memory) the 1920s, but it was threatened about 10 years ago during the family trust kerfuffle. And since ~98% of MPS actually don't know this, they would never think to try.

    All that said, the meeting would accomplish nothing. Nortel execs would simply claim the bonus were necessary to keep 'top talent' (possibly quoting attrition stats) and the lay-off are being done by law (at least in Canada). That plus extremely boring and irrelevant speechifying by the politicians (which would take up most of the time).

  • NortelEmp

    I agree. Cannot compare. The hearings are not to save Nortel, anyhow. They are to further understand what Nortel is doing because, from the outside, it makes no sense. Who cares if politicians are grandstanding. Really. Make the execs answer some tough questions.

    Only problem is as SOS stated. Once parliament reconvenes in the fall, there probably won't be anyone left to summons.

  • yes4aapl

    WTF?
    I'd say it would be difficult to nail down Mike Z as he showed high IQ in his crimes, /yes crimes/
    It was easy job to expose F Dunn accounting frauds and investigators have millions of pages to prove it.
    just my opinions as the investor's point of view

  • ExNtrl

    You want to make a buck on this situation…There are case studies coming out of the wood work on how not to manage and lead a company.. Health care studies on the effect on an employees health due to the company environment, MBA case studies on how not to manage a company GE style, ethics, and how not to manage. People take notes and document out the wazoo..Once you get the boot without severance, time to publish the information.

    Also here is a thought for you, when you joined the company you had to sign an employee agreement, I bet the HR people can not produce the paperwork.

  • yes4aapl

    cared then Frank Dunn would be in prison rather than some legal limbo and being represented by John Manley's (biggest tool on the BoD) law firm. Instead he has remained relatively unscathed
    ===
    re

    links pls..

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

    Nortel SEC 10K FY 2008, page 218
    http://www.nortel.com/corporate/investor/report…
    ————————
    In particular, the Nortel Boards have determined that Mr. Manley’s association with the Canadian law firm of McCarthy Tétrault LLP, as an independent consultant with the title “Counsel”, does not constitute a material relationship with Nortel. McCarthy Tétrault LLP represents a former Nortel executive in connection with certain civil proceedings relating to such individual’s association with Nortel.
    ——————————–

    Statement by Frank Dunn's Counsel:
    http://www.cnw.ca/en/releases/archive/June2008/…
    —————
    TORONTO, June 19 /CNW/ – The RCMP today announced that criminal charges have been laid against Frank Dunn. We are confident that the evidence will demonstrate that Mr. Dunn acted honestly and diligently in the interests of Nortel's shareholders and employees at all times, and that he will be acquitted of these charges.

    For further information: David Porter, McCarthy Tétrault LLP, (416)
    ———————————-
    601-7870

  • yes4aapl

    thank you man
    You are always credible in your posts…

  • sleepingbeauty

    I think the government should come down hard on them like they did on AIG in the states.

  • 4merEmployee22

    Administrative charges by E & Y Inc. = $ 5,000,000.00 Canadian dollars!!!

    WOW! These God Chosen people are so lucky!

    Did I read that one right?

  • How_long

    They're not cheap. A friend of mine used to work there and did very nicely. It doesn't really matter how much they charge. All it does is reduce the cents in the dollar creditors get at the end of the day.

  • 4merEmployee22

    OK, THANK YOU!

    Are you a Lawyer? By any chance? I would like to sue

    NORTEL $1,000,000,000 Cdn dollars for PAIN & SUFFERINGS!

    Nooooooooo! No court will allow this, I supposed.

    It's just my wishful thinking. ha ha ha ha!

  • Nortel_or_Enron??

    Is it possible for Nortel employees to protest outside of Alepians new office? The new company sure would not like the bad publicity and it would really make Ron “the liar” Alepian crawl under his desk.

  • Nortel_or_Enron??

    Is it possible for Nortel employees to protest outside of Alepians new office? The new company sure would not like the bad publicity and it would really make Ron “the liar” Alepian crawl under his desk.

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