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A grievance has been filed claiming payments from Nortel under its Retirement Allowance Plan

02-10-2009

 13 :55 EST   
The following is an update for beneficiaries of Nortel’s  Retirement Allowance Plan.

You are all aware of the fact that on January 14, 2009, Nortel placed itself under court protection, having obtained an order by the Superior Court of Ontario suspending claims and lawsuits against it. Due to its insolvency, Nortel requested this protection in order to reach a settlement with its creditors and thereby enable it to continue its short- and long-term operations.

Needless to say, this news is worrisome. In fact, a large part of Nortel’s obligations affect its current and retired employees and, in this way, you are all Nortel’s creditors.

Many of you have already been directly affected by this situation. Specifically, Nortel has ceased paying Retirement Allowance Plan (“RAP”) and bridge benefits. On the other hand, we can confirm that, as of today and despite certain rumors, the company is fulfilling all its obligations with regard to group insurance, except for employees receiving bridge benefits.

Nortel is protected from all debt-collection lawsuits for the length of the order, which expires February 13, 2009. However, on February 10th, Nortel will apply to the Court for an extension of this order until May 1st, 2009.

For the moment, our ability to react is limited. Nevertheless, be advised that we are closely monitoring the procedures that are going on right now in Ontario and we will do everything in our power to protect your rights. We have filed a preventive stage 3 policy grievance. The purpose of this measure is to claim RAP payments and unpaid bridge benefits from Nortel, and to order immediate performance of all other obligations enshrined in our collective agreements.

Some of you have asked our opinion about joining a class action lawsuit brought against Nortel by an Ontario law firm. Such a suit, just like any other action against Nortel by us or them, cannot be brought at this time.

During this most difficult period, it is important we remain levelheaded and unified; rest assured that we will keep you informed as important developments occur.

Again, we want you to know that we will use all means at our disposal to protect your rights.

In solidarity,

Pierre Lebrun
Business Agent
Teamsters Québec, Local Union 1999

The Teamsters Union represents 125,000 members in Canada in all trades, including 45,000 in Québec alone. The International Brotherhood of Teamsters, with which Teamsters Canada is affiliated, has 1.4 million members in North America.

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Information:
Pierre Lebrun, business agent
Local Union 1999 – 514-355-1110
 
 
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