Marston to PM: Prorogation Leaves Pensioners with Nothing

FOR IMMEDIATE RELEASE
JANUARY 26, 2010

New Democrats demand urgent action

OTTAWA – The Prime Minister must end prorogation and bring Parliament back so that immediate action can be taken to save the pensions of workers whose former employers are currently in bankruptcy or restructuring proceedings, says New Democrat Pensions Critic Wayne Marston.

“This issue needs addressing now, not next month. Pensioners stand to lose everything while Parliament remains padlocked,” says Marston. “The Prime Minister must call Parliament back so that Canada’s outdated bankruptcy laws can be changed in time to protect the pensions of Canadian workers.”

Marston was joined at a press conference today by Dave Coles, President of the union representing many AbitibiBowater and Fraser Papers employees (CEP), and Don Sproule, President of the Nortel Retirees Protection Committee (NRPC).

Nortel is currently in CCAA restructuring. If these proceedings break down, as is widely expected, the company will be declared bankrupt and will fall under the jurisdiction of the Bankruptcy and Insolvency Act (BIA). Unless the BIA is amended before this shift occurs, the company’s unfunded pension liabilities will not be protected and pensioners will be left with nothing.

AbitibiBowater and Fraser Papers are two other companies currently undergoing CCAA restructuring.

“Parliament could be doing a lot to save these pensions. Changing bankruptcy laws and implementing a National Pension Adoption facility would at least give pensioners a fighting chance to recoup their losses,” says Marston. “But while the doors or Parliament remain locked, these workers are left with no recourse.”