Change of Address

Nortel Claims Representation

January 24, 2012 - Update on Information Statement Packages for employees transferred, terminated or retired in 2011

In accordance with the Court Approved Compensation Claims Process, the Monitor has  21 business days from December 31, 2011 (i.e. by January 30, 2012 ) to send, by mail, an Information Statement Package to Nortel employees who were either transferred, terminated or retired during the calendar year 2011 and who have a claim against the Nortel estate.   It is also possible that the Monitor believes that you do not have a claim, in which case you will be receiving a letter from the Monitor informing you that you do not have a claim and providing you with a blank proof claim form.

We are advised by the Monitor that these packages/letters were mailed on Friday, January 20th.

You will have an opportunity to review your Information Statement Package and to submit a Request for Correction if there are any errors in the personal data that was used to value your claim. If you believe that you have a claim that is not covered in your Information Statement Package or if you disagree with the Monitor’s assessment that you do not have a claim, you will have an opportunity to file a Proof of Claim. Please note that the deadline to submit a Request for Correction or to file a Proof of Claim form is 50 regular days from the date of the package or letter and must be submitted by 4:00pm Eastern Standard Time.

If you are a transferred employee, our firm can assist you with this process and reviewing your situation. You should contact us as soon as possible through our client portal at https://portal.nelligan.ca/index.cfm and provide us with the relevant information and documents, including the letter from the Monitor, Form A and Form B of your Information Statement Package.

If you are an employee terminated directly from Nortel or a retiree, then you should contact the firm of Koskie Minsky in Toronto for assistance.

If you have recently moved (or moved since you left Nortel) and have not reported your change of address, please complete a Change of Address Form, which is available on our website or the Monitor's website.

If you have not received your package within two weeks please contact your appropriate legal representative.

Update regarding Delivery of Information Statement Package

If you have not yet received an Information Statement package, please note that packages were mailed out between November 3 and 7, and delivery time will vary depending on your location. It is entirely possible that the package could still be en route to you by mail.

It is also possible that your package may have been mailed to an incorrect address or that an Information Statement has not been prepared for you. For example, if you were an active employee as of Dec 31, 2010 and were transferred after Dec 31, 2010, packages will only be sent out within 21 business days after Dec 31, 2011. It is also possible that the Monitor believes that you do not have a claim, in which case you will be receiving a letter from the Monitor informing you that you do not have a claim and providing you with a blank proof claim form.

Next Steps:

As the package may still be in the mail, please wait until November 14, 2011 to contact Nelligan O' Brien Payne or the Monitor about the status of your package. If you have not received a package by November 14, please contact us or the Monitor to inquire whether an Information Statement package was prepared for you.

If you have recently moved (or moved since you left Nortel) and have not reported your change of address, please complete a Change of Address Form, which is available on our website or the Monitor's website.

If you do not receive an Information Statement before the Nov. 11 webinar or the live information session on Nov. 17, you can attend the sessions without an Information Statement. Once you eventually receive your package you will be able to access the webinar presentation online at our portal. You will also be able to contact us and the Monitor by telephone or by email to ask questions.

If you have received a letter from the Monitor, informing you that you do not have a claim or feel that a claim is absent from your Information Statement and you are concerned whether that assessment is correct, please log into our website portal to complete our questionnaire. Please then send us an email at ncce@nelligan.ca with your questions regarding your situation and possible claims that you feel you may have. Be sure to include your Information Statement. We will then review your email and respond to you.

Webinar on November 11, 2011 and Live Information Session on November 17, 2011

An informational webinar was held in order to provide an overview of the Court approved Compensation Claims Process, including the methodology and Information Statement packages. The webinar allowed Active employees and Non-Unionized Transferred Employees to ask any questions they had regarding the Compensation Claims Process. Active or Non-Unionized Transferred Employees were invited to attend the webinar.

For more information regarding your claims, representation and to submit questions or concerns to us, we have created a Nortel Communications Portal for both Active and Transferred Canadian employees of Nortel. To access the portal or login please click here .

If you have not previously registered to confirm you are part of our group please create an account on this communication portal.

Information for Live Information Session - November 17, 2011

A live information session was held to provide an overview of the Compensation Claims Process, including information about the Information Statement Package process.

For those unable to attend on November 17, 2011, please refer to the PowerPoint presentation for more information.

Should you have any questions please email us at ncce@nelligan.ca or call us at 1-877-542-9254

Update on Information Statement Packages

In accordance with the Court Approved Compensation Claims Process, the Monitor shall within 21 business days of October 6, 2011 (i.e. by November 4, 2011) send, by mail, an Information Statement Package to individuals who have a claim against the Nortel estate.

You will have an opportunity to review your Information Statement Package and to submit a Request for Correction if there are any errors in the personal data that was used to value your claim. If you believe that you have a claim that is not covered in your Information Statement Package, you will also have an opportunity to file a Proof of Claim. Please note that the deadline to submit a Request for Correction or to file a Proof of Claim form is at 4:00pm Eastern Standard Time on January 6, 2012.

Please note that active employees will receive a letter to advise them that their Information Statement package will only be prepared and sent to them after they cease employment with Nortel. Active employees will have a rolling bar date of 50 days after having been sent their information packages to submit a Request for Correction or a file a Proof Claim.

There are a small number of transferred employees who may have filed claims in the US Chapter 11 Proceedings. For those individuals, the Monitor is seeking an order to delay the mail out of the Information Statement Packages as under the Cross Border Protocol, the Monitor is required to consult with the US estate to determine if the claims against both estates are overlapping. If the Order is approved, the Information Statement Packages for these individuals will be mailed out 7 days after the consultation process is completed. If you are a transferred employees who has filed a claim in the Chapter 11 Proceedings, we invite you to please contact us at ncce@nelligan.ca to provide us with information regarding your situation, including a copy of the claim filed by you in the Chapter 11 Proceedings.

October 7, 2011 - Compensation Claims Process Approved by Court

On October 6, 2011 the Ontario Superior Court of Justice approved the Compensation Claims Methodology Order and the Compensation Claims Procedure Order (the "Compensation Claims Process"). A copy of the Orders can be found by clicking here.

The purpose of the Compensation Claims Process is to value the claims of all employees and former employees of Nortel. As counsel to the current and transferred employees of Nortel, we are holding an informational webinar to provide an overview of the Compensation Claims Process, including the Methodology and the Information Statements, on November 11, 2011 at 5:00 pm. In addition, we will present a live information session on November 17, 2011.

Information Statement packages and Letters from the Monitor

You will be provided with an opportunity to review your Information Statement Package and to make any corrections to the data in the package that was used to value your claim. If you feel that you have a claim that is not covered in the Personal Information Package, you will also be provided with an opportunity to file a proof of claim.

Information Statement Packages will be sent to transferred employees of Nortel within 21 business days of October 6, 2011. If Nortel and the Monitor have determined that a transferred employee does not have a claim under the approved methodology, a letter will be sent along with a blank proof of claim form to allow you to file a claim.

Please note that the deadline to make any correction to the Information Statement and to file a proof of claim form is at 4:00pm Eastern Standard Time on January 6, 2012.

Active employees will receive a letter within 21 days to advise them that their Information Statement package will only be prepared and sent to them after they cease employment with Nortel.

Please check our website and the communication portal frequently in order to keep informed about key dates and developments, including the place and time for the information session and to register for the webinar.

September 26, 2011 - Webinar regarding the Proposed Compensation Claims Process

An informal webinar providing overview of the proposed Compensation Claims Process, including the proposed methodology and the Information Statement process was held on September 26, 2011. 

For those unable to attend on September 26, 2011, please refer to the PowerPoint presentation for more information.


September 20, 2011 - Motion to Approve Compensation Claims Process to be Heard on October 6, 2011

Nortel has brought a Motion seeking the approval of a Compensation Claims Process for employee and former employee claims. The documents have now been filed with the Court.. The motion to approve the Compensation Claims Process will be heard by the Court on October 6, 2011. The motion record can be found by clicking here.

The Company, the Monitor and the Representatives of the various employee groups have worked together for the last of year to arrive at a proposed compensation claims process that efficiently facilitates determining the value of your various claims based upon an agreed methodology. Should the Compensation Claims Orders be approved by the Court, the Applicants and the Monitor, with actuarial assistance, will complete Personal Information Statement Packages using the Court-approved methodology for employees and former employees believed to have claims.

Please note that active Nortel employees will only receive packages after they have either been terminated by Nortel or had their employment transferred to a Purchaser.

You will be provided with an opportunity to review your Personal Information Statement Package and to make any corrections to the data in the package that was used to value your claim. If you feel that you have a claim that is not covered in the Personal Information Package, you will also be provided with an opportunity to file a proof of claim.

Client Communications Portal

We have also created a communications portal for Active and Transferred Non-unionized employees. The purpose of portal is to facilitate communication with Active and Transferred Canadian employees of Nortel regarding the claims process and their claims.

On this portal, you will be able to:

• Set up your profile;
• Complete a questionnaire to provide us with information related to your specific situation and provide us with relevant information regarding your personal situation and possible claims;
• Submit documents that relate to your personal situation and the possible claims you may have. The documents and responses to the questionnaire will assist us to respond to your questions or concerns regarding your claims and the claims process; and
• Submit questions regarding your claims and personal situation.

For more information, or to access and register for the portal please click here.

Should you have any questions please contact us at ncce@nelligan.ca or call 1-877-542-9254.

July 18, 2011 - Nortel Patent Sale and Potential Employee Transfers

On July, 11 2011, the Commercial Court issued an Order approving the sale of Nortel's patents to Rockstar Bidco LP. Pursuant to the Sale Agreement between Nortel and Rockstar, some Nortel employees may be offered employment with Rockstar. Employees offered positions will have at least 7 days to consider any offer. The transferring employees are guaranteed to receive the same base salary and annual incentive opportunity, a comparable position at a reasonably continguous location and will have their prior years of service recognized by Rockstar. Rockstar has agreed to offer employee benefits that are "no less favourable in the aggregate" than those provided by Nortel when considering total compensation, with the exception of defined benefit pension, equity, and retiree benefits (which are not protected). To the extent that benefits offered are not as favourable, transferring employees will receive additional cash compensation in lieu. The guarantee of equal compensation will only be for a period of 12 months. In addition, accrued vacation will be carried over to Rockstar.

Continuing Employees with questions can contact Nelligan O'Brien Payne at NCCE@nelligan.ca

Update on Pension Plan

Members of Managerial and Non-Negotiated Pension Plan, should expect to receive a letter from Morneau Shepell, the current Administrator of the Plans, in the next few weeks providing them an update. This letter will advise Plan members of important issues relating to pensions, including the upcoming pension reductions that some Plan members will experience effective August 25, 2011.

For more information please visit the Morneau Shepell's website at
https://www.pensionwindups.morneaushepell.com/_private/select_plan.asp?DURL=/en/plan_info/plan_info.asp .


June 9, 2011 - Leave to Appeal the HWT Decision Denied

The Supreme Court of Canada issued a decision earlier today in respect of Nortel’s Health and Welfare Trust (HWT).  A small group of 36 dissenting LTD beneficiaries have been denied leave to appeal from a decision of the Ontario Court of Appeal dated January 7, 2011.  The Ontario Court of Appeal Decision denied leave to appeal a decision of the Ontario Superior Court of Justice dated November 9, 2010, which approved the allocation of the assets of the HWT.

The Court approved methodology for allocation provides that beneficiaries who have claims presently being paid out of the HWT and those whose claims that are certain to be payable in the future, will share in the distribution of the HWT.  As a result  of the Court's decision,  the following beneficiaries are entitled to distributions according to their pro rata share of the funds in the HWT:

• Pensioners for Pensioner life insurance (which will include 150 active employees as well as Long Term Disability ("LTD") Beneficiaries who will have vested by December 31, 2010);
• LTD Beneficiaries for both LTD Income benefits and LTD Life insurance benefits;
• LTD Beneficiaries participating under Optional Life insurance for Optional Life insurance benefits
• Survivor Transition Beneficiaries who are currently receiving Survivor Transition benefits; and
• Survivor Income Beneficiaries who are currently receiving Survivor Income benefits

April 6, 2011 - Nortel Announces Stalking Horse Bid by Google to Purchase Patent Assets

Nortel has entered into a stalking horse asset sale agreement with Google Inc. for the sale of all of Nortel's remaining patents and patent applications for a cash purchase price of US$900 million. Nortel will file a motion for the approval of the bidding procedures by the Ontario Superior Court of Justice. The motion will seek the establishment an auction that allows other qualified bidders to submit higher or otherwise better offers. Following completion of the bidding process, final approval of the U.S. and Canadian courts will be required.

Claims Process Is a Work In Progress

Unfortunately, we are still not in a position to advise you with certainty what the claims process will look like or when it will be announced.  We are working with Nortel and the Monitor to create a streamlined process for Continuing Employees’ claims. We expect to be able to provide specifics within the next two months.

When the Commercial Court appoints representative counsel for employees in a CCAA proceeding, it is doing so, in part, so that the Court and the Monitor do not have to deal with thousands of individual employees.  We hope to be able, with the Company and the Monitor, to arrive at claims process that efficiently facilitates determining the value of your various claims.  Although each individual’s situation is unique, the questions you have been asking have demonstrated that you share common concerns and anticipate being able to claim for many of the same types of loss.

In the FAQs we have been posting on our web site over the past months, we have identified some of the potential employment-related losses for which employees will file claims.  These include:

• pension loss
• future TRA
• retiree benefits
• patent awards
• bonuses
• losses resulting from reductions in salary and benefits with a purchaser of Nortel assets during the period of reasonable notice following the termination of your employment with Nortel
• statutory termination and severance pay (under applicable Employment Standards legislation) for employees who declined an offer of employment with a purchaser of Nortel assets

In our role as Representative Counsel, we will assist in the filing of claims in the Claims Process once that process is established.  In the meantime, we urge you to begin assembling the documentation that will support your claims.  This will include:

• the basic information we will need to determine the reasonable notice period for the termination of your employment with Nortel (date of birth, age, length of service, base salary, other elements of your compensation)
• your most recent Nortel position and a brief description of your duties
• details of your Pension Plan membership
• your most recent Pension Statement
• any documents related to any supplementary pension plan entitlements
• identification (within the limits of the law) of patents for which you should have received an award
• any other information and associated documents concerning any other entitlements from Nortel that you believe may be owing to you
• a summary of the outstanding entitlements you believe are owed
• job offer (and acceptance) from a purchaser of one of Nortel’s business divisions

We are not inviting you to forward documents to us at this time.  We are preparing a website that will contain a questionnaire regarding possible claims.  Once that website is completed, employees on our mailing list will receive an email advising them. Once the site is ready, the link for the website will be found at www.nelligan.ca.

We will provide additional information as it becomes available.  Employees with questions can correspond with us at our ncce@nelligan.ca address.

IMPORTANT Reminder: Continuing Employees Should Confirm Address and Contact Information

In advance of an employee claims process, its important that the remaining employees of Nortel and employees who have been transferred to new employers ensure that both Nortel and Nelligan O'Brien Payne have their correct contact information and email addresses.

Many of you have provided us with your contact information in the past, but there are employees whose interests in the claims process we represent who have not yet registered with us.  In the meantime, if you are aware of colleagues who have not been in touch with us or if your own contact information has changed, we encourage you and your colleagues to send us your updated contact information to the following email address ncce@nelligan.ca

Employees should also ensure that their contact information is updated in both Nortel's and Morneau Sobeco's records. Morneau Sobeco can be contacted at www.pensionwindups.morneausobeco.com or nortelwindup@morneausobeco.com.

Negotiated Plan (phone): 1-877-392-2073
Managerial Plan (phone): 1-877-392-2074
 

March 8, 2011 - Stay of Proceedings Extended to June 30, 2011

On February 25, 2011, the Commercial Court issued an Order extending the stay of proceedings until June 30, 2011. The Court also ordered that the period for receipt of employee hardship applications pursuant to the Employee Hardship Process be extended to June 30, 2011.  The Monitor has provided in its 59th Report a status update on the proceedings (the report can be found by clicking here)

Unfortunately, we are still not in a position to advise with certainty what the employee claims process will look like or when it will be announced.  Based on past experience, we are optimistic that Nortel and the Monitor will be prepared to work with us to negotiate a streamlined process for Continuing Employees’ claims. Discussions concerning the claims process are ongoing.

November 15, 2010 - HWT Allocation Order

The Court Order approving the allocation of the corpus of the HWT can be found by clicking here.

November 9, 2010 - Court Approves Monitor's Proposal for the Distribution of Health and Welfare Trust

The decision concerning the approval of the allocation of the corpus of Nortel's health and welfare trust (the "HWT") among certain beneficiaries was released on November 9, 2010. To view a copy of the decision please click here.

The Court approved the methodology for allocation of the corpus of the HWT proposed by the Monitor. The allocation methodology, the Monitor's motion materials and reports on the HWT can be found by clicking here.

The approved  allocation methodology provides that beneficiaries who have claims presently being paid out of the HWT and those whose claims that are certain to be payable in the future, will share in the distribution of the HWT.  As a result  of the Court's decision,  the following beneficiaries will receive distributions according to their pro rata share of the funds in the HWT:

• Pensioners for Pensioner life insurance (which will include 150 active employees as well as Long Term Disability ("LTD") Beneficiaries who will have vested by December 31, 2010);
• LTD Beneficiaries for both LTD Income benefits and LTD Life insurance benefits;
• LTD Beneficiaries participating under Optional Life insurance for Optional Life insurance benefits
• Survivor Transition Beneficiaries who are currently receiving Survivor Transition benefits; and
• Survivor Income Beneficiaries who are currently receiving Survivor Income benefits.

Under the Court approved Former Employee Settlement Agreement, the distributions from the HWT are slated to occur before the end of the year.

October 27, 2010 - Stay of Proceedings is Extended to February 28, 2011

On October 27, 2010, the Commercial Court issued Order extending the stay of proceedings until February 28, 2011. In addition, the Court ordered that the application period for receipt of employee hardship applications pursuant to the Employee Hardship Process is also extended to February 28, 2011.  The eligibility requirements in respect of the Employee Hardship Process are set out in the form attached as Appendix "c" to the Fifty-Fifth Monitor's Report or can be found by clicking here http://documentcentre.eycan.com/Pages/Overview.aspx?SID=89

Morneau Sobeco is Appointed to be the New Pension Administrator

Under the Court approved Settlement Agreement, Nortel ceased to be administrator of the Nortel pension plans after September 30, 2010. The Financial Services Commission of Ontario, pension regulator in Ontario, has appointed Morneau Sobeco Limited Partnership to be the new plan administrator effective October 1, 2010.  In accordance with the March 31 Court-approved Settlement Agreement, Nortel will ceased to make contributions to the Pension Plans. Morneau Sobeco is now the administrator of the Nortel pension plans and is ultimately responsible for the wind-up of the Pension Plans. Inquiries regarding Nortel’s pension plans should be directed to Morneau Sobeco on or after October 1 at: www.pensionwindups.morneausobeco.com or nortelwindup@morneausobeco.com.

Negotiated Plan (phone): 1-877-392-2073
Managerial Plan (phone): 1-877-392-2074

September 27, 2010 - Motion Regarding the Distribution of the Health and Welfare Trust on September 29th

A motion by the Monitor has been scheduled for Wednesday, September 29, 2010 for the approval of the methodology for allocation of the corpus of Nortel's health and welfare trust (the "HWT") among certain beneficiaries participating in the HWT. The proposed allocation methodology, the Monitor's motion materials and reports on the HWT can be found by clicking here.

The proposed allocation methodology provides that beneficiaries who have claims presently being paid out of the HWT and those whose claims that are certain to be payable in the future, will share in the distribution of the HWT.  As a result, it is proposed by the Monitor that the following beneficiaries receive distributions according to their pro rata share of the funds in the HWT:

• Pensioners for Pensioner life insurance (which will include 150 active employees as well as Long Term Disability ("LTD") Beneficiaries who will have vested by December 31, 2010);
• LTD Beneficiaries for both LTD Income benefits and LTD Life insurance benefits;
• LTD Beneficiaries participating under Optional Life insurance for Optional Life insurance benefits;
• Survivor Transition Beneficiaries who are currently receiving Survivor Transition benefits; and
• Survivor Income Beneficiaries who are currently receiving Survivor Income benefits.

We have reviewed the Monitor's Motion Material and Reports in order to determine both the impact on and the position of the Continuing Employees in relation to the HWT and the relief being sought.

Although, we do not necessarily agree with any or all of the submissions in the Monitor's motion materials, on balance we have concluded that the proposed allocation methodology is reasonable and consistent with the terms of the HWT.  We have therefore been instructed by the NCCE Steering Committee to support the proposed allocation methodology. A copy of our factum can be found by clicking here.


August 30, 2010 - Nortel Enters into a Stalking Horse Bid for the MSS Business with auction to take place on September 24th

On Wednesday, September 1, 2010  Nortel will be seeking, among other things, an order to approve a stalking horse agreement involving the bidding procedures and related matters in respect of the sale of Nortel's MSS business.  The purchaser under the stalking horse agreement is PSP Holdings ("PSP"), with a proposed purchase price of $39 million. In order to determine if there are other parties who are interested in purchasing the business for a higher price, a bidding process will be put in place. The bidding procedures require all qualified bids to be submitted by September 21st, with an auction to take place on September 24th.

Under the stalking horse agreement, if the PSP bid is ultimately successful, it has offered to employ at least 95% of the employees of the MSS business.  Any offers made will be for annual salary and target incentive that is at least equal to what was offered at Nortel. Employees will also be offered reasonably comparable positions at a location close to their current location. PSP has agreed to recognize service dates and provide substantially comparable benefits (except retiree benefits and special incentives) as employees had access to at Nortel for at least 12 months following the agreement.

We will provide additional information as it becomes available.  Employees with questions can correspond with us at our ncce@nelligan.ca  address.

Motion Regarding the Distribution of the Health and Welfare Trust on September 29th

A motion has been scheduled for Wednesday, September 29, 2010 for, among other things, approval of the methodology for allocation of the corpus of Nortel's health and welfare trust (the "HWT") among certain beneficiaries participating in the HWT.

The proposed allocation methodology provides that beneficiaries that have claims presently being paid out of the HWT and those whose claims that are certain to be payable at some future date, will share in the distribution of the HWT.  As a result, it is proposed by the Monitor that the following beneficiaries receive distributions according to their pro rata share of the funds in the HWT:

• Pensioners for Pensioner life insurance (which will include those active employees and Long Term Disability ("LTD") Beneficiaries who will have vested by December 31, 2010);
• LTD Beneficiaries for both LTD Income benefits and LTD Life insurance benefits;
• LTD Beneficiaries participating under Optional Life insurance for Optional Life insurance benefits;
• Survivor Transition Beneficiaries who are currently receiving Survivor Transition benefits; and
• Survivor Income Beneficiaries who are currently receiving Survivor Income benefits.

We are reviewing the lengthy Motion Material in order to determine both the impact on and the position of the Continuing Employees in relation to the HWT and the relief being sought. We will be instructed in due course by the NCCE Steering Committee.

Unfortunately, we are still not in a position to advise you with certainty what the claims process will look like or when it will be announced.  Based on past experience, we are optimistic that Nortel and the Monitor will be prepared to work with us to negotiate a streamlined process for Continuing Employees claims. We believe that progress will be made in the fall of 2010

June 4, 2010 - Leave to appeal denied

The Court of Appeal decided today to deny leave to appeal on a motion by a group of Nortel LTD employees who had sought to appeal the March 31 decision of the Ontario Superior Court of Justice, approving the Settlement Agreement. The Settlement Agreement ensures the continuation of health, dental, life and LTD benefits through 2010. Follow this link to view a copy of the Decision.

April 21, 2010 - Update to Nortel Continuing Canadian Employees ("NCCE")

This is intended to update NCCE members on the status of the CCAA proceedings and the steps you can take now to prepare for filing proofs of claim once the employee claims process is put in place.  

You have all been following in the media the process through which Nortel is moving towards the final stages in the Companies’ Creditors Arrangement Act (“CCAA”) proceedings. Although the CCAA may be used to give companies protection from creditors while they work to restructure their debts, Nortel is using the CCAA (and the insolvency laws of other countries) to sell off its operating divisions and its other assets worldwide. We still do not know when this process will be completed.  Until it is, the Company remains unable to determine the size of the “pot” that will be available for distribution to its creditors, including Nortel employees and former employees. 

Many Nortel employees have accepted employment with a purchaser of Nortel assets.  The employment of many others has been terminated.  For those who remain at Nortel, their activities will revolve around transitioning the various divisions to the purchasers and winding down Nortel’s operations. 

By Court Order dated July 22, 2009, Nelligan O’Brien Payne LLP and Shibley Righton LLP were appointed as representative counsel for Nortel “Continuing Employees”, at Nortel’s expense.  The Commercial Court also formally recognized the “Nortel Canadian Continuing Employees (NCCE)” and ordered that Kent Felske and Dany Sylvain, on behalf of the NCCE, be appointed as representatives of all Canadian Continuing non-unionized Nortel employees.  

On August 3, 2009, the Commercial Court issued another Order clarifying the scope of Nelligan O’Brien Payne and Shibley Righton’s representation of Continuing Employees.  Under the terms of the Order, our mandate is to provide advice and representation to Continuing Employees concerning employment-related claims and potential claims under the CCAA process, including issues arising with respect to pension plans and the health and welfare trust.  

If you have accepted employment with a company that purchased Nortel assets, you are still a Continuing Employee for purposes of representation by us in the claims process.  

Terminated employees, pensioners and Nortel employees on disability are being represented in the CCAA proceedings by the firm of Koskie Minsky LLP in Toronto. 

Many of you have provided us with your contact information, but there are Continuing Employees whose interests in the claims process we represent who have not yet registered with us.  We have asked for information from Nortel that will enable us to contact all Continuing Employees.  In the meantime, if you are aware of colleagues who have not been in touch with us, we encourage you to direct them to our website to provide their coordinates.  

Unfortunately, we are still not in a position to advise you with certainty what the claims process will look like or when it will be announced.  Based on past experience, we are optimistic that Nortel and the Monitor will be prepared to work with us to negotiate a streamlined process for Continuing Employees’ claims.

We believe that the progress will be made by early summer 2010.

When the Commercial Court appoints representative counsel for employees in a CCAA proceeding, it is doing so, in part, so that the Court and the Monitor do not have to deal with thousands of individual employees.  We hope to be able, with the Company and the Monitor, to arrive at claims process that efficiently facilitates determining the value of your various claims.  Although each individual’s situation is unique, the questions you have been asking over the past months have demonstrated that you share common concerns and anticipate being able to claim for many of the same types of loss.  

In the FAQs we have been posting on our web site over the past months, we have identified some of the potential employment-related losses for which employees will file claims.  These include:

• pension loss
• future TRA
• retiree benefits
• patent awards
• bonuses
• losses resulting from reductions in salary and benefits with a purchaser of Nortel assets during the period of reasonable notice following the termination of your employment with Nortel
• statutory termination and severance pay (under applicable Employment Standards legislation) for employees who declined an offer of employment with a purchaser of Nortel assets

In our role as Representative Counsel, we will assist in the filing of claims in the Claims Process once that process is established.  In the meantime, we urge you to begin assembling the documentation that will support your possible claim.  This will include:

• the basic information we will need to determine the reasonable notice period for the termination of your employment with Nortel (date of birth, age, length of service, base salary, other elements of your compensation)
• your most recent Nortel position and a brief description of your duties
• details of your Pension Plan membership
• your most recent Pension Statement
• any documents related to any supplementary pension plan entitlements
• identification (within the limits of the law) of patents for which you should have received an award
• any other information and associated documents concerning any other entitlements from Nortel that you believe may be owing to you 
• a summary of the outstanding entitlements you believe are owed
• job offer (and acceptance) from a purchaser of one of Nortel’s business divisions

We are not inviting you to forward documents to us at this time.  We are preparing a website that will contain a questionnaire regarding possible claims.  Once that website is completed, employees on our mailing list will receive an email advising them. Once the site is ready, the link for the website will be found at www.nelligan.ca

March 31, 2010 - Amended and Restated Former Employee Settlement Agreement

The Court has approved the Amended and Restated Former Employee Settlement Agreement, which will ensure the continuation of health, dental, life and LTD benefits through 2010. The Order approving the Settlement Agreement is available through this link.


March 26, 2010 - Decision concerning the approval of Nortel Former Employee Settlement Agreement

The decision concerning the approval of the Former Employee Settlement Agreement was released on Friday March 26, 2010. To view a copy of the decision please click here.

The Court dismissed the motion and as a consequence did not approve the Settlement Agreement. While the Court found that the agreement was fair to the former employees and employees on LTD, the agreement was not approved on account of the inclusion of a clause in the Agreement that allowed the parties to reserve their rights should changes be made in the future to the Bankruptcy and Insolvency Act. The clause was found not be fair on account that it did not provide any certainty and finality to the other unsecured creditors.

In absence of the Settlement Agreement,  the funding of former employee and LTD employee benefits  is scheduled to cease as of March 31, 2010.  Discussions continue between the parties to resolve the issue. We will update our website once further information becomes available.

February 17, 2010 - Nortel Settlement Agreement - Funding of Pension and Benefits during 2010

Nortel, the Monitor and the former employees, including pensioners and the LTD Beneficiaries have entered into a settlement agreement involving the funding of pension and benefits during 2010.

Settlement details - Feb 8, 2010

Settlement Webinar - Feb 17, 2010

Webinar PowerPoint Presentation - Feb 17, 2010

September 9, 2009 - Endorsement issued by Justice Morawetz

In response to a request for Directions as to the scope of the work we are doing or attempting to do for continuing employees as their representative counsel in the context of the offers of employment being made by purchasers of Nortel assets, Justice Morawetz issued this endorsement on September 9, 2009. Link to Justice Morawetz endorsement.


August 3, 2009 - Nelligan O'Brien Payne and Shibley Righton formally appointed as representative counsel

On August 3, 2009, the Ontario Superior Court – Commercial Court in Toronto, issued an Order formally appointing Nelligan O'Brien Payne and Shibley Righton as representative counsel for Continuing Nortel Employees ("Continuing Employees") at Nortel's expense. Under the Order, Nelligan O’Brien Payne and Shibley Righton are appointed as counsel for the Continuing Employees to provide advice and representation with respect to Continuing Employees’ employment-related claims and potential claims in the CCAA Proceedings, including issues arising with respect to pension plans and the health and welfare trust.

Link here for a copy of the Order.

As a result, Nortel employee legal representation in Canada can be summarized as follows:  

• Employees who continue working for Nortel and/or are offered employment with new companies as the result of anticipated asset sales will be represented by Nelligan O'Brien Payne and Shibley Righton at Nortel's expense.
• Employees who have already been terminated by Nortel continue to be represented by Koskie Minsky, as will employees who are terminated in the future. 
• Employees who are on LTD are represented by Koskie Minsky.
• Employees are free to retain separate counsel at their own expense.

Continuing employees with existing or specific employment related issues or who wish to be added to our confidential email communication list should contact Nelligan O'Brien Payne at – NCCE@nelligan.ca.  

July 30, 2009 - CCAA Claims Process and Proofs of Claim

A claims process for other non-employee creditors was approved on July 30, 2009. There is currently no claims process for employee claims. Once a process for employee claims has been put in place, employees will be able to submit a proof of claim seeking compensation for any employment-related losses they have suffered.

Nelligan O'Brien Payne and Shibley Righton will approach Nortel and the Monitor to negotiate a separate streamlined claims process for Continuing Employee claims. Once the claims process is established, we will send out an email to all continuing Nortel employees who are on our confidential email communications list advising them of the process. If you would like to be added to this list, please send an email to NCCE@nelligan.ca

In the interim, Continuing Employees who are seeking additional information concerning their entitlements should read our Frequently Asked Questions document at the following link: Nortel Canadian Continuing Employees FAQ
 

July 28, 2009 - Nortel's LTE and CDMA businessees approved for sale to Ericsson

On July 28, 2009, the Ontario Superior Court – Commercial Court in Toronto, approved the sale of Nortel's LTE and CDMA businesses to Ericsson.  As part of the sale, its expected that some Nortel employees who worked in the LTE and CDMA product lines will be provided with offers of employment from Ericsson. It is not known at this time when the offers will be made but they could be as early as next week. Its also expected that employees will only be given a short amount of time to consider offers, but in any event not less than one week. 
  
Pursuant to the agreement between Nortel and Ericsson, the offers made to employees are to be on "terms and conditions no less favorable in the aggregate" than the terms and conditions of their employment at Nortel. The agreement does not provide any details of what will be in the offers.  However under the agreement, Ericsson is also not obliged to offer any equity, retiree, medical benefits, or defined pension benefit in any offer it makes, unless required to do so by law. In addition, Ericsson must also maintain the no-less-favourable terms and conditions for 12 months following the Closing Date of the transaction.  The agreement preserves Ericsson’s right to make changes to employee entitlements during the 12-month period, as long as the changes are made generally applicable across its entire employee population (i.e., as long as the changes do not apply only to former Nortel employees).   
 
Nelligan O'Brien Payne is attempting to obtain information concerning the offers in order to be in a position to advise affected employees of their legal entitlements and their options. In the interim, Continuing Employees with existing or specific employment related issues should contact Nelligan O'Brien Payne at – NCCE@nelligan.ca  

July 24, 2009 - Media Release
 

July 22, 2009 - Nelligan O'Brien Payne and Shibley Righton appointed as representative counsel

On July 22 the Ontario Superior Court – Commercial Court in Toronto, appointed Nelligan O'Brien Payne and Shibley Righton as representative counsel for continuing Nortel employees at Nortel's expense. 

Link here for a copy of the Endorsement

Justice Morawetz acknowledged that continuing employees at Nortel require legal representation to advise them of their rights with respect to employment issues. 

The Commercial Court also formally recognized the “Nortel Canadian Continuing Employees (NCCE)” and ordered that Kent Felske and Dany Sylvian, on behalf of the NCCE, be appointed as representatives of all Canadian continuing non-unionized Nortel employees.  

The NCCE was originally formed for those employees who were still employed on January 14, 2009, when Nortel sought protection under the Companies' Creditors Arrangement Act (“CCAA”).  Any continuing Nortel employee who has not signed up with the NCCE should consider joining this group to keep track of progress, share comments or raise questions.  To join the LinkedIn group NCCE (Nortel Canadian Continuing Employees) go to:

 http://www.linkedin.com/groups?gid=1796107&trk=hb_side_g 

Nortel employee legal representation can be summarized as follows:  

• Employees who continue working for Nortel and/or are offered employment with new companies as the result of anticipated asset sales will be represented by Nelligan O'Brien Payne and Shibley Righton at Nortel's expense.
• Employees who have already been terminated by Nortel continue to be represented by Koskie Minsky, as will employees who are terminated in the future.
• Employees are free to retain separate counsel at their own expense.

Continuing employees with existing or specific employment related issues should contact Nelligan O'Brien Payne at – NCCE@nelligan.ca

April 1, 2009 - Media Release

March 10, 2009 - Media Release