Nortel wants court to terminate US retiree benefits

 Networks Corp. is seeking a judge’s permission to cut off medical and disability benefits to more than 4,000 former U.S. employees.

Montreal Gazette – Nortel, based in Toronto, has asked a bankruptcy judge in Delaware overseeing the case to let it stop the benefits, which are costing the company $2 million U.S. a month, at the end of August.

A hearing is scheduled for July 16. “Providing these benefits is a significant financial burden that does not provide any concomitant benefits to the debtor’s estates,” Nortel said in court papers. “The individuals currently receiving the benefits of such expenditures are not providing services to the debtors.”
Nortel has agreed to pay benefits to 19,800 retired and disabled Canadian workers to the end of the year by creating a $57-million fund.

Currently, 4,019 retirees and family members receive medical benefits, while 280 individuals get long-term disability benefits. Nortel said it negotiated an agreement with UnitedHealthcare Insurance for provide medical coverage to the retirees if want to buy it

Click HERE to read more columns by Stephan Pate.

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1 Comment

  1. You guys should stop complaining cuz one the health care we have now isnt as good as it was supposed to be. also the law has just been signed give it a try u guys are too hard on democrats they went to college and we voted for most of these if u want to say u have the right to choose tell that to ur congress men or state official. as for obama people are just tryin to make it look like america made a mistake he has done things to help us and we had a full 8 years of a terrible prescomment_IDent and i will be so as happy as ever when a obama fixes bush’s mistakes. You can find full medical coverage at the lowest price from obama has to put up with the wo0rld judging his every move and trying to fix the mess we are in we are lucky anyone wants to be our prescomment_IDent. STOP COMPLAINING AND GIVE HIM A BREAK. i wanna see one of yall do what he sas done. some people are just so ignorant.

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