Nortel retirees worry about pensions after bankruptcy protection filing

A group of retirees is worried their pensions are in jeopardy after Nortel, their former employer, filed for bankruptcy protection last week.

"We understand Nortel has not contributed the full amount in recent years that would be needed to sustain our pensions in the long run," pensioner Dave Agnew said Tuesday.

Agnew worked for the now-struggling telecommunications company for 28 years. Lately, he said, he has been in close contact with other former Nortel employees who are worried their pensions could be reduced in the future as a result of Nortel's demise.

'After losing so much of our RRSPs, if we lose this, we can't survive.' — Roger Desgroseilliers, Nortel retiree

Thousands of former Nortel employees currently draw pensions, and a majority live in the Ottawa area. Mark Zigler, a lawyer with the firm Koskie Minsky in Toronto, said pensioners should try to join the group so that their interests are represented during the court-supervised process that Nortel is currently engaged in.

"There'll be extensive negotiations among creditors," he said. "They should have a seat at the table, collectively anyway."

Zigler said no lawsuits can be launched against Nortel while it's under bankruptcy protection.

If the company actually goes bankrupt, he added, pensioners are often among the last creditors to receive anything during the division of assets.

Many former Nortel workers put much of their life savings in Nortel stock, now almost worthless. The pensions are all they have left.

Roger Desgroseilliers worked with Nortel for 35 years.

"After losing so much of our RRSPs, if we lose this, we can't survive," he said. "I'm 70 years old now. Do you think I could find a job right now? I don't think so."

Koskie Minsky, which specializes in bankruptcy cases, was to hold a meeting at the Nepean Sportsplex at 2 p.m. Wednesday to advise Nortel retirees.

Zigler said the firm may also look into helping recently laid off Nortel workers, who get no severance while the company is under creditor protection.