How unfair can you get?
That was the reaction of many of the people I have talked to in Northern Manitoba about the fact that Nortel executives gave themselves millions in bonuses while their workers lost their pensions and severance.
Nortel was once one of Canada's largest, most successful corporations. Now it has come to represent how unfair our current bankruptcy laws are to Canadians.
How much did Nortel executives pocket?
Their former CEO claimed $12.3 million (U.S.) for back pay and bonuses. In March, some 100 executives were awarded $45 million in retention bonuses. An internal Nortel file outlines a new compensation scheme for 72 Nortel executives that will see them get a total of $7.5 million U.S. on top of their current salaries in 2009.
These bonuses are absolutely unacceptable and are only possible because the federal government is completely absent when it comes to protecting workers. That is why our caucus has tabled a bill that would solve this problem.
Our Bill (C-476) would put workers pensions ahead of other creditors and executive bonuses when a company fails. It closes 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.
This bill is all about fairness. Federal laws govern bankruptcies, meaning the federal government has the power to act. It needs to recognize that pensions are really the deferred earnings of workers. They should not be put at risk.
It is hard to believe that in 2009 workers and pensioners can be put in such a difficult situation.
That is why I strongly support this legislation and will be vocal in fighting for fairness for all Canadians.
