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A motion put forward by the NDP on Tuesday is aimed at helping Nortel pensioners struggling to get compensation.
NDP proposes motion to help Nortel pensioners
Updated: Tue Nov. 03 2009 4:36:16 PM
ctvottawa.ca
A new motion put forward by the NDP could help Nortel employees struggling to get compensation for their pension plan by giving them priority over other creditors.
If the motion passes, a national pension insurance program would be created, guaranteeing pensioners up to $2,500 per month in the event their pension plan goes under.
"The Nortel Act tabled today takes the decisive steps that are needed to put the shortfalls in pension plans on an equal footing to other preferred creditors," said NDP Leader Jack Layton on Tuesday.
The motion would allow more than 20,000 former Nortel employees who are owed pension, severance or disability pay to be moved up in Nortel's priority list of creditors.
Pensioners say the bill will make it easier to recover money that's owed to them, which is what they've been fighting for all along.
"The Bankruptcy Act does not give us preferential treatment at all. Those are deferred wages. They are wages that are owed to us and at the present time, we're just like any ordinary creditor," said Francois Meunier, chair of the Nortel Retirees Protection Committee.
"What this bill does, is it gives us some higher level of preference so we could recoup the lost money much easier and much faster."
He says the government needs to recognize that pension problems at Nortel could easily happen to other Canadian firms.
"We're kind of the image of what's happening to pensioners today . . . There are many others back there in the wings that it's going to happen to unless the government decides to act," said Meunier.
Although the motion would help protect pension plans across the country, it won't cost the taxpayer anything.
"It will just give pensioners priority over other creditors," said Meunier.
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Comments are now closed for this story
Cliff
Both governing parties (Conservatives and Liberals both) have had the chance to amend the Bankruptcy act over the years. I remember following amendments proposed by Herb Gray back in 1974. The secured creditors (read banks) have always found ways to block any such amendments and will probably do so again. Workers are not risk takers in the same way as banks and should be at a higher level in the "receiving line" Good on the Dippers for trying again but I guess I am cynical about the ability of Parliament to enact the legislation. Watch the Senate rant and roar about such radical ideas!
Cliff
As an after thought, why don't the PM and his party announce they will support the NDP proposal? They could propose amendments if the general thrust of the legislation looks good. Tit for tat would see the NDP support them the next time there is a confidence motion!
C.
Although I am sympathetic to the plight of Nortel Pensioners, the last thing I want to see is my tax dollars paying for their pensions. Similar to many Canadians, I am not fortunate to have a pension plan through my employer. Why should I help pay for their retirement - it is hard enough to save for my own.
Ian Ottawa
Gee, Thanks for trying to make me and my family responsible for every idiot who never planned ahead for there retirement. I paid into a pension plan and worked until I could retire as well as contributing to RRSP's. If you didn't do it or didn't read the fine print of your collective agreement, then tough. The trough is empty from my pockets as well as the rest of the Canadian taxpayers. I worked for my retirement income and its not my fault you made the wrong choice. Federal Government should step back and refuse to get involved with this bailout which will snowball into everyone who wants a free ride at my expense.