Nortel Strikes Deal with Long-Disability Employees

Maybe they can re-evaluate all 400 to see if they are still disabled. Anyone who is no longer disabled gets nothing from the $57M and there is more for the folks truly disabled. Sounds cruel but it is ultimately fair - you get disability payments for the long term if you are truly unable to work.

Here is my take on this. From a LTD perspective

- We are asked to agree to a deal which will be the majority of our post-Nortel pay without a clue as to what it was. We have been told that it is more than 15% and much less than 100%. That is a big range. For the average LTDer it is the difference between $300 a month and $1400 (assuming much less than 100% is about 70%). We need to see specifics or we need to be able to Sue if the HWT is inadequate. I understand that suing is not easy and definitely not guaranteed but this takes away our bargaining chip or any chance of settling with the trust company, Sunlife, and the Directors.

- We are being asked to agree to a deal without an audit on the HWT. This Trust was part of the accounting irregularities in the 2003 financial report. And there is a fiduciary duty on the part of the trust company to ensure the company kept their part of the deal. We will no longer be able to get a settlement from the trust company. I can't even figure out how the trust company was a consideration in the monitor report. How does the trust company getting sued affect the Nortel estate?

- We are being asked to allow the directors to have a free pass based on their not replenishing the HWT even though it was part of their duty.

- The lawyers are allowed to take a some of their pay from the funds of the HWT, there is no legal reason that this should happen. It allows them to take their money out of the employees money not Nortel's. Nortel does not own the HWT and have no right to any of the money in it. Nortel is completely responsible for the payment of the lawyers wrt to the CCAA proceedings. The wind up of the HWT is a direct result of Nortel CCAA process. They are responsible for all the lawyers pay. That way it is spread throughout the creditors evenly.

- Diane U. explained during her talk how the clause is hurting us, because it takes away our right to a fair claims process

- We are betting the whole enchilada on the BIA amendment coming through and us being able to use it, if it does come through great but if it doesn't we will be forced into abject poverty. Honestly, I want the BIA amendment to make it, but it is a Hail Mary pass.

- We are being denied a separate class which will allow us not to be able to do a number of things, like request movement into BIA, or like vote against the plan if it is unreasonable.

This is what we gain:

- 9 months pay (12M for all LTDers)
- 9 months pension accrual (max 1M further diluted by the CCAA creditor claim rate)
- 9 months medical trust

These gains can easily be wiped out by the clause that allows lawyers and accountants to take their fees from the Health and Welfare Trust ( set up to care for the employees and former employees of Nortel. - No other creditors currently have access.)

A "deal" is a "deal" with this company... until it doesn't suit them, anymore.

haha - "We'll sweat the big stuff, you just worry about making your weekly units"

Think the ultimatum fraud settlement they tanked was bad?
Remember the ultimatum for the timely resigned plea bargained board?
How about another ultimatum?

Look what their army of lawyers just pulled with the pensions!

As one great and proven poster on Yahoo put it:
"Remember when NT agreed to speed up the fraud lawsuits if plaintiff's agreed to drop suits against the BoD members? They're still paying off people to protect the good old boys who hired Dunn, the Admiral and the Z man (and not the Cisco twins).

"OTTAWA — Former Nortel employees will face big cuts to pensions, health care, disability coverage and other benefits later this year under a $57-million deal with the insolvent company.

But their representatives said Tuesday the deal was the best available and the new funding avoids having benefits cut as early as April. They gave up their rights to sue the company and its directors."


"The deal also blocks the former Nortel employees from suing the company and its directors over the administration or funding of Nortel pension..."

"They also dropped an appeal to the Supreme Court of Canada seeking enforcement of provincial minimum standards rules on severance payments."


Here, read all about it:

http://www.ottawacitizen.com/life/Nortel+pensioners+representatives+accept+cuts+time/2539311/story.html

I am on LTD in the U.S., does this December 2010 apply to me as well?

What a lousy deal. The court appointed reps should be ashamed of themselves.

Nortel gave the terminated employees nothing (most will not get $3k because they got aip,keip, kerp), the pensioners get to have peanut payments to the fund and let these losers manage it a little while longer, and the LTD get ten more months to find out no one will insure them.

And they give up all the leverage they have garnered through a year of pressure on mp's/mpps/rallies by hundreds and hundreds of people.

No wonder Nortel campaigned so hard to get KM as the employee lawyers. They're just an extension of the nortel law department.

The "right thing" to do is take the cash from Nortel than keep extending enormous liberties.

Imagine buying votes? What makes them better than corrupt Nortel?

Why is PROVINCIAL funding provided after loopholes under NATIONAL Bankruptcy Laws.

EDC extensions and OSC leniency in fraud haven Canada as the government legalizes Casinos, HST, and even mean spirited Harris' cuts were not restated.

Nortel bonuses but no severances, big business creditors protected even after they printed money neglecting largest pension shortfall than a mere footnote (a loophole closed right after) , so many lies even after and they tanked ultimatum fraud settlement with further revisions wiping out profits for even post fraud periods, largest asset on books was a tax write off, etc...

How many powers at play sleep with each other to find the most comfortable solution, legalize theft, as people run record high debt and record low savings. Big business theatrics and armies of powerful lawyers, Nortel increased lawsuit insurance who's premiums get paid first like legal fees, Manley's firm defends Dunn, like how obvious does it have to get before protest is in order.

The government should go after Nortel's, assets than burden taxpayer to the tune of $200 million. If is to buy votes with taxpayers money, it only extends the corruption it's citizens are subject to by those that were elected to act in their best interests.

at least something than nothing. nothing anybody can do about bonuses so just a waste of energy.

If you look at the small print in the 36th monitor report (page 56 of 67), the terminated/ltd/pensioners also agree to NOT oppose the next version of the current employee bonus and retention plan.

Pretty safe to say that there will be massive bonuses yet again for the chosen few.

This is all about getting another big payout to useless John Doolittle types and all their friends under the cover of concern for suffering pensioners and LTD

The way I read the new release, the $3000 lump-sum is for ALL terminated employees post-Jan 14/09, and is an advance on their eventual severance claim settlement. Big deal. All that will do is complicate EI and tax filing. And I'm sure there is a Nortel lawyer out there somewhere trying to figure out how this lump sum can be twisted into their advantage when it comes to claims settlement. From a terminated employee perspective, this lump-sum seems like nothing more than a throw-in for those that were randomly chosen to take one for the team.

You mean the "I believers"?
I guess the VANOC organizing committee and commercial faction got their
idea for Donald Sutherland and "beleive" from Zilcho and his minions.
They just dropped the I.

Note this only applies to former employees in Canada. Those folks in the U.S. waiting for their severance are still out in the cold...

True enough. Nothing like having different rules in different jurisdictions on different timelines to confuse the hell out of everyone.

Remember this only applies to the disability group. 400 people.
Does not apply to all the other people laid off who did not get severance.

WTF. Only $3000 for the former employee?Give up the right to pursue for minimum severance. Or I am still a Nortel creditor and will receive whatever settlement in the future.

I'm not a lawyer but it seems to be an advance against what you could/may/should receive out of the bankruptcy proceeding.