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10:38 a.m. • 2-9-12

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Laid-off Nortel workers lose benefits


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Nortel Networks
Nortel Networks

Recently laid-off Nortel worker Robert Miller said he learned from a co-worker that his severance package would be cut off at the end of January.

Miller was among the 1,300 workers laid off by Nortel Networks in late 2008. On Friday, a Nortel spokesman confirmed to WRAL News that the company would cease severance and insurance benefits for laid-off employees Jan. 31.

The announcement came two days after Nortel, which employs some 2,000 people in the Triangle area, filed for Chapter 11 bankruptcy protection.



Some former employees said they learned about the change from a telephone call.

“At least have enough respect to tell us upfront that this is what’s going on,” Miller said.

Miller, a data networks worker, started at the telecommunications company in 1985. He was let go in 2002 but rehired in 2003. He was laid off again in December as part of corporate cutbacks.

“They had started outsourcing a lot of work to India,” Miller said.

Since Miller took a severance package after his first lay-off, his most recent package was based on his service since 2003. Miller said he took solace in knowing he would get full pay and benefits, as part of the package, through April.

“Cutting off everybody’s severance…after they laid them off with no notice or anything like that kinda makes me angry,” Miller said.

Company spokesman Jay Barta described the cutbacks as “tough but necessary.”

"As Nortel goes through the restructuring process there will be impacts on employees,” Barta said. “We know this is difficult news for employees whose contributions have been, and continue to be, key to Nortel's innovation. This is a tough but necessary step as we restructure to put Nortel on sound financial footing once and for all."

Those few months of severance pay could be the difference between making it or not, Miller said.

“If I can get a half-way decent paying job, we get to keep our house,” he said.

Analysts say the bankruptcy filing gives Nortel time to restructure but believe more layoffs are inevitable.

RELATED TOPICS: Outsourcing

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this is a failure on the part of NT's Board of Directors and executive management, not Canada.....

The United States Government should seize assets of the Canadian based Nortel that are located in the United States. These seized assets should then be liquidated and used to pay the severance packages that Canadian based Nortel promised American workers.

Canadian based Nortel has no loyalty to the United States and it's citizens.

The United States should have no loyalty to Canadian based Nortel.

Corporate loyalty, shareholder value. Which one do you think winds up riding in the backseat in any contest?

That's pretty low. I think this is the first time I heard of severance packages being axed after they were given. I think those people who looked down upon the younger generation for not being loyal and staying with one company for 25 years, will be singing a different tune. There is no such thing as employer to employee loyalty. It's all about survival, regardless of whether you've been there for 25 years or not. Matter of fact, the longer you've been there the better chance of being your being axed because of various reasons.

lol, pleshy

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