Nortel Insider – by Desk Jockey

The view from one Desk Jockey

CBC Newsworld – Henry Juroviesky on Nortel Not Paying Severance

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Written by Desk Jockey

March 20, 2009 at 9:34 pm

Posted in Uncategorized

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18 Responses

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  1. What is really shocking is that Nortel refuses to identify who the executives receiving KEIP are, citing that if their identity was known, competitors would try to poach them. What a load of crap, who would want to poach these incompetents that drove Nortel into the ground and that lack vision and management skills. How many Nortel top executives have been hired by Cisco, Alcatel-Lucent and others in the past? The answer is zero.

    What these executives are really worried about is that if their identity is known, the media will be on top of them relentlessly or worse still some employee(s) might go postal on them.

    Happy Ex-Norteler

    March 21, 2009 at 7:43 am

  2. You are right, I don’t know who in their right mind would want to hire ANY of these GEnius LOSERS after seeing what they have done to Nortel. They have NO WHERE to go and that is why they are pushing hard for bonuses because they know their time is up and want to loot as much as possible from the corpse before its too late.

    Desk Jockey

    March 21, 2009 at 10:04 am

  3. Haha. That’s Fucking rich. Improve THEIR morale?

    I’m angry, but not surprised considering the me first attitude of Nortel execs.

    It’s just like when Peter Currie decided to cost reduce the coffee in 2004.

    On the surface it’s not a big deal. It’s only coffee, right? Saved the company a whole 150K a year from what I understood.

    Of course, the execubots still got their perks. I still remember seeing the Sodexo guy pushing that cart full of sandwiches, doughnuts, coffee, bottled water and chocolate bars to execubot offices every day. From what I understand, most of which goes to waste anyway.

    Nortel Tool

    March 21, 2009 at 1:16 pm

  4. You guys are wrong, I have seen quite a few executives go to Cisco in the last 5 years, most recently was Steve Slattery. I really dont monitor these things so you guys who are quick to jump the gun should at least research your comments.

    vested

    March 21, 2009 at 8:52 pm

  5. DeskJockey, I take it you are still employeed at Nortel, so tell me…
    If; Another 880 employees worldwide could be paid as much as $22 million U.S. in bonus payments while Nortel restructures. They include managers, engineers, sales and other key employees consider critical to the Nortel plan.

    How can us remaining employees benefit from this?

    vested

    March 21, 2009 at 9:09 pm

  6. Deskjockey,

    The Titanic’s crew can see the iceberg up ahead and they are stealing the jewelry and cash from the ship’s vault before boarding their life boats.

    It gets worse, notice how few law firms claiming to represent Nortel employees deprived of severance are working “pro-bono”. I can’t find any, they all want a minimum of $250 retainer upfront from Nortel employees cheated of severance. This tells me law firms know Nortel employees will either not win the case or will win but Nortel will not have any money left to provide settlements. So the law firms are demanding upfront retainers so they can capitalize on the misfortunes of current Nortel employees.

    Mr. Z and company know very well the economy is terrible and existing employees have no choice but to remain at Nortel (with a future of no severance and reduced pension benefits). The logical thing for existing employees to do is to look elsewhere and take any work (even at a pay cut or at a job that might not appeal to you at first) because Mr.Z and his GE buddies are only looking out for themselves.

    Happy Ex-Norteler

    March 22, 2009 at 6:21 am

  7. The KERP applies to 880 employees in US and Canada only, it is not a world-wide retention bonus.

    The misery this small band of gutless, greedy incompetents have caused is, however, world-wide.

    Paul

    March 22, 2009 at 12:07 pm

  8. Jurovieksy and Ricci LLP is a law firm willing to work for the Nortel Canadian terminated employees on a full contingency basis and this firm and myself have already begun our work on this basis.

    See the following terms in the Juroviesky and Ricci LLP retainer form found on its webpage:

    http://www.jruslaw.com/NortelCCAA

    I understand and agree that the Committee will retain the law firm of Juroviesky and Ricci LLP (“J&R”) on its own behalf and on behalf of all members of the Group to provide advice and representation in respect of the termination-related entitlements of the Group in connection with the proceedings involving Nortel under the Companies’ Creditors Arrangement Act (Canada) (the “CCAA Proceedings”).

    4. No Fees Paid by CLIENT – It is understood that the Committee and J&R will seek to obtain from the Court an appointment to represent the interests of the Group and approval from the Court-appointed monitor and the Court for the payment of the Committee’s legal, related expenses and applicable taxes associated with the CCAA Proceedings. CLIENT understands that CLIENT will not pay fees and disbursements at any time during this retainer. CLIENT also agrees and acknowledges that this Retainer Agreement may be terminated by J&R, in J&R’s sole discretion, in the event that J&R is not appointed as Representative Counsel in the CCAA Proceedings, and that if this Retainer Agreement is terminated, a new voluntary contingency-based retainer agreement will be sought from CLIENT and the Committee to enable continued representation for the Group, to be mutually negotiated and agreed to at that time.

    Diane Urquhart

    March 22, 2009 at 12:48 pm

  9. Paul,
    I must be honest with you, I am in either US or Canada. What I want I want to know is… is the bonus money automatic or do managers have to feel as if they are losing an employee to the competition in order for that employee to get the cash incentive??? should i demand this payment if I feel I deserve it or is it automatic.

    yes I am to direct but money is money and I want it. (i keep selling in these tough times and feel i am worth retaining so where is my cash)

    thanks,
    PS i know this blog is probably not the right place to ask my questions but rest assured that the info I am requesting is not made easily available… cheers

    vested

    March 22, 2009 at 10:42 pm

  10. If you want to let the Ontario judge, who approved the Nortel executives KEIP bonuses, what you think his e-mail address is geoffrey.morawetz@jus.gov.on.ca

    Happy Ex-Norteler

    March 23, 2009 at 8:32 am

  11. Vested, I honestly don’t know how one would qualify. They haven’t published a plan yet so it’s hard to see what products and roles would be deemed important – would it be the ones being sold to XYZ or those retained in the shrunken Nortel? If you are able to successfully sell in the current situation then you obviouly have value, the issue is do the people who decide the (retention) bonuses recognise it. Good luck.

    Paul

    March 23, 2009 at 2:36 pm

  12. I heard this case and would like to share with you.

    An accountant friend’s friend in US wanted to buy a troubled US company (his business is to buy companies in trouble and turn it around). The condition of his buy offer is to let go all the management executives and keep all the employees (he doesn’t want any of the top management executives who demontrated their failure to run a company). His offer was rejected by the BoD (because the BoD includes few managemenet execs). The management execus want to protect their jobs.

    Later on, the troubled company filed bankrupcy protection. According to the law, the management executives are protected for 2 years during bankrupcy protection. The troubled company chose to file for bankrupcy instead of being purchased. The bankrupcy protection law is there to protect the executives and not the company.

    I told my friend that Nortel may be the same case. They decided to file for bankrucpy protection to keep their jobs at the expense of employees’ severance payment. Now, the bonus payment to the executives just demonstrated that Nortel has a bunch of greedy executives. They are going to squeeze every penny before Nortel goes bankrupcy eventually.

    Oscar

    March 23, 2009 at 2:39 pm

  13. Henry Juroviesky of Juroviesky and Ricci LLP and independent financial analyst, Diane Urquhart, are hosting a webinar on Wednesday, March 25, 2009 at 3:00 PM EDT to update you on our plan to accelerate and maximize the recovery of the termination and severance pay owed to Nortel Canadian terminated employees and to facilitate the creation of additional value for the Nortel estate. We will answer questions about our no ‘up-front fee/retainer’ and clarify any confusion you may have about our legal plan.

    Reserve your Webinar seat now at:
    https://www2.gotomeeting.com/register/585229926

    Please register at least 15 minutes before the scheduled time of the webinar.

    Diane Urquhart

    March 24, 2009 at 11:11 am

  14. DJ, just curious, are you one of those employees that were let go or are you still an employee?

    vested

    March 26, 2009 at 6:52 am

  15. These guys are liars and thieves. What other behavior would you expect ?

    Robert

    March 26, 2009 at 11:21 am

  16. Some of my former colleauges insist on shilling for Cdn. government assistance for this ship wreck. Let’s be honest. In the early 90’s Nortel successfully lobied for gov’t assistance from the Cdn. government. The arguement/justification of that day was – “give us a hand-out to keep the jobs in Canada” Money received and the jobs moved to the Carolinas in any event. Many of those complaining now gladly accepted transfer allowances and moved to the USA. So much for loyalty for Canada. There remains one logical solution for the Ontario and Federal governments who are nwo being asked to expend taxpayer’s funds to bail out an underfunded pension plan in Ontario. Nortel was initially Bell Northern Labs and existed as an R&D entitity. That is the single part of the company that should interest Ontario or teh Feds. Take the R&D assets as well as all Cdn. based patents, relocate the new stand alone venture near Kitchener where it can team with Uof Waterloo and R.I.M. to create a centre of excellence. Any thought of trying to salvage the rest of teh company is just plain silly. The corporation became disfunctinal long ago and its management team lacks the moral fiber to do much.

    Nortel Retiree - Brampton

    June 24, 2009 at 11:57 am

  17. Good comments in the ottawa Citizen.
    http://www.ottawacitizen.com/news/Government+idle+Nortel+collapses/1726117/story.html

    I urge those impacted to contact their MPP & voice your opinion. It’s time to address the political motivation of our government. Even if it means calling back Parliament to deal with the issue. The conservative gov’t is oblivious to the whole situation. The only action I have read about is from NDP ( which plans to introduce a motion to amend bankruptcy laws to make sure pensioners and laid off employees get top priority on the list of creditors). I know next time where my vote is going. I have no idea how far this is going but we need to put pressure on our MPP’s to make sure this gets a hearing. A lot is at stake.

    FIND YOUR MEMBER OF PARLIAMENT USING YOUR POSTAL CODE
    http://www2.parl.gc.ca/Parlinfo/Compilations/HouseOfCommons/MemberByPostalCode.aspx?Menu=HOC

    Provincial MPP:
    http://www.ontla.on.ca/web/members/members_current.do?locale=en

    jazzybest

    June 26, 2009 at 6:31 pm

  18. Former Nortel workers could get paid earlier than other creditors: court.
    Former employees of Nortel Networks Corp. who have been fighting to get their severance and pensions from the disintegrating telecommunications company could soon receive some compensation thanks to an Ontario Superior Court ruling released Monday.
    http://www.cbc.ca/canada/ottawa/story/2009/06/29/ottawa-nortel-former-employee.html

    jazzybest

    June 30, 2009 at 12:17 am


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