There could be more cuts in pensions and benefits coming for former Nortel workers and retirees.
A law firm representing the ex-employees made the announcement during a Webcast held this week. Furthermore, claims against the bankrupt telco giant will likely take several more months to resolve as Nortel sheds its business units. There’s less money to pump into the pensions and medical funds for retirees as the company sells itself off in pieces.
The toughest impact may be felt by people on long-term disability. The money in the trust that pays for that comes from Nortel’s general revenues, which most expect will shrink quickly.
Retirees – who have been getting pension and health benefits since Nortel declared bankruptcy in January – won’t be certain about their future benefits until sometime next year, the law firm said.