Nortel employee severance payments frozen by bankruptcy

Last November, Network World reported the layoff of 1,300 Nortel employees. This week, the Globe and Mail is reporting that Nortel CEO Mike Zafirovksi has confirmed that Nortel's severance payments still owed to those 1,300 laid-off employees have been frozen by the Nortel bankruptcy filing, and will be applied against Nortel's debts. The Globe added that legal experts said a Nortel employee severance payment will typically rank behind other debts in a bankruptcy proceeding, which means it is likely Nortel will have insufficient cash to pay most of the owed compensation. A laid off Nortel employee was quoted in the article stating: "I was told today after the bankruptcy announcement that I would not receive one thin dime of severance. I'm not too happy with my ex-employer right now," said Eric Fawcett, a U.S. employee, who was given notice on Dec. 4, 2008 that his job would be eliminated after 17 years of employment with Nortel. The contact number for laid off Nortel employees and pensioners: 1-800-676-4636 EMEA Call: 00800-8008-9009 (select option #7 for 'Express Routing Code,' then enter: 4531#)


Will this affect the dedication of Nortel employees still with the firm? BradReese.Com Cisco Refurbished

  1. Nortel board of directors vote to file bankruptcy
  2. Former Cisco data center chief debates Cisco data center senior director
  3. Nortel employees speak out: Hopes of becoming multimillionaires dashed
  4. Message to Cisco: Happiness lies back in your own backyard
  5. Billion dollar financial fraud revealed within Satyam, a collaboration partner of Cisco
  6. China CCIE count grows 11 times more than U.S.
  7. Cisco goes Hollywood with product placements
  8. Cisco activates crisis management team as global manufacturing hits new low
  9. Is Cisco customer advocacy being thrown under the bus?
  10. 1% of Cisco products generate 50% of Cisco product revenue
  11. View Brad Reese on Cisco Story Archives
  
Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.
Related:
Now read: Getting grounded in IoT