OTTAWA – The Harper Conservatives have allowed Nortel executives to give themselves millions in bonuses while their workers lose their pensions and severance, said New Democrat Pensions Critic Wayne Marston.
“These bonuses are absolutely disgusting and are only possible because the Conservative government is completely absent when it comes to protecting workers,” said Marston. “I have tabled a bill that would solve this problem, yet this government is refusing to act and allowing this kind of disgusting behaviour.”
The New Democrat Nortel Bill (C-476) would put workers pensions ahead of other creditors and executive bonuses when a company fails by closing loopholes in federal bankruptcy laws. The bill would ensure companies make good on their pension obligations and put workers at the table, alongside major creditors, to take part in restructuring talks when a company files for bankruptcy protection.
“Federal laws govern bankruptcies, meaning the federal government has the power to act,” said Marston. “The Harper Conservatives need to stop pretending their hands are tied and pass our bill to stop these unbelievable bonuses and start protecting pensions.”
It has been reported that Nortel is paying out as much in bonuses as it owes in severances.
Once again corporate greed wins out. In Canada, someone like Conrad Black would never have been charged. The Americans are way ahead of us in preventing this sort of thing.