Anxious former Nortel workers cram meeting on pensions
Last Updated: Thursday, January 22, 2009 | 3:58 PM ET
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IN DEPTH: Nortel
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Hundreds of former Nortel employees and their spouses jammed into an Ottawa meeting Wednesday afternoon to learn what could become of their pensions and benefits now that their former employer has filed for bankruptcy protection.
"We all have a concern about the extent to which our pensions are funded and what's happening to other retirement benefits such as health care, dental plan, life insurance and so on," said David Jeanes, one of the organizers of the meeting at the Nepean Sportsplex.
'I feel betrayed after working for so many years and putting all my best efforts to support the company.'— Yao Chen, former Nortel employee
The meeting drew more than 700 people, forcing organizers to scramble to schedule extra sessions.
Nortel Networks filed for bankruptcy protection on Jan. 14, protecting the telecommunications technology company from its creditors while it tries to restructure.
Since then, former employees such as Roger Desgroseilliers have been worried.
Desgroseilliers, who has worked for Nortel for 35 years, said most of his RRSPs were shares in Nortel. As the stock plunged, he lost about $238,000, and now he's worried about losing his pension, too.
"If we lose this, you know, you can't survive," he said Wednesday. "I'm 70 years old now. You think I could find a job somewhere? I don't think so."
Cecile Lovas's husband worked for Nortel for 37 years. Since he died a year and a half ago, she has been receiving 40 per cent of his pension.
"And if I lose 20 to 40 per cent of that pension, I'm going to end up with nothing," she said.
The meeting didn't draw just retirees. Yao Chen, 52, was laid off in December after 23 years with Nortel. Because of the bankruptcy protection filing, he hasn't received the severance he was expecting and said he was at least hoping to soon start receiving a pension.
"I feel betrayed after working for so many years and putting all my best efforts to support the company," Chen said.
Organizers of the meeting collected the email addresses of everyone who attended the meeting so that they can contact them once they have more information about the fate of their pensions.
In the meantime, Mark Zigler, a lawyer with the firm Koskie Minsky, which has been hired to represent the interests of Nortel employees, told those at the session that their pension fund is independent of Nortel and therefore safe for the moment.
"There's money there, but there could be reductions if there's not enough money there to pay out all the pensions," he said.
Tamas Koplyay, a management professor at the University of Quebec in the Outaouais, said the situation could get worse if the company actually files for bankruptcy.
"Which is essentially washing everything — I mean, it's gone. The pensions are gone, too," he said.
An Ottawa law firm, Nelligan O'Brien Payne, is holding an information session for current and recently laid-off employees on Jan. 26 at 5 p.m. Travel Lodge on Carling Avenue about how Nortel's bankruptcy protection and possible bankruptcy could affect their owed wages, benefits and certain pension claims.
Steven Levitt, an employment lawyer with the firm, said there is potential for a class-action lawsuit against Nortel. However, he noted that no legal action can be taken against Nortel while it's under bankruptcy protection.
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