Nortel Pensioners Want Bankruptcy Law Changes

Nortel Networks workers on long-term disability are trying to convince all federal leaders in Canada’s government to support a bill to amend the country’s bankruptcy laws.

The bill would catapult employees on long-term disability to the top of the list of creditors to be paid if a company goes bankrupt, according to the CBC. At that point, payments would continue until the former workers turn 65 and become eligible for retirement benefits.

In Nortel’s case, the bill would save pensioners’ benefits and keep them going past the end of this year. Right now, the perks stand to run out on Dec. 31.

Nortel filed for bankruptcy on Jan. 14, 2009, and throughout its assets auctions, has said it doesn’t have enough money to cover pensioners.

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