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back to article Nortel staff sacked without redundancy payout

Networking equipment maker Nortel sacked 228 UK staff on Monday without a redundancy pay out. Nortel Networks UK does not have to make redundancy payouts because it is in administration while its Canadian parent company is under bankruptcy protection. Those sacked will be eligible for a small statutory redundancy payment from …

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Figures

I'm sure the boss got a platinum parachute or at least a bonus...

This must be why gun control is so ridiculous in GB?

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Sucks.

Nuff said.

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Ru
Pirate

This would never happen in France...

see title.

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Unhappy

Shame!

Letting go of folks on a Monday without so much as a reduncancy payment. :( I'm sure the bosses would be sent off with a nice payment.

Nortel Newtownabbey used to be a hive of activity, for the last 25 years or so. Most IT folk in Belfast of a certain age did their time there :)

These days its a ghost town, a shadow of it's former self. The bar round the back is worth more.

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Anonymous Coward

E&Y

How much are E&Y making out of this deal?

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sucks but.

it's exactly what happens to everyone in the construction industry.. of all the architects, engineers etc that i know who lost their jobs of all get statutory minimum, or less like when my firm went bust.

the site builders etc usually get about 3 hours notice and paid if they are lucky.

hearing about IT guys for banks getting a month for every year served.. that'd be the day.

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Coat

They've been in chapter 11 for 3 or 4 months

You'd have thought they wouldn't have any staff left to sack - it's kind of a booby prize for those who didn't walk.

Mine's the one with the writing on the wall and a different pay slip in the pocket.

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Err...

Northern Ireland is in the UK you know...

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I am just waiting...

For the bosses to get paid fat bonuses for failing.

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Notel isn't a US company

Minor point... the parent company is Canadian, not US.

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Stop

US parent company?

Founded in Montreal. Headquarters in Toronto. Listed on the Toronto Stock Exchange.

A spin-out of Bell Telephone of Canada.

Which US parent company would that be?

And who writes this stuff without checking their facts.

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Nik
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For the greater good

That'll be the flexible labour force necessary to the future prosperity of the country then.

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Poor folks

sucks :(

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Anonymous Coward

Lay-off

This is digusting. This is a dirty trick, a way of getting rid of the staff without having the pay them off.

All be warned, check your contracts of employment, because there is a little known situation known as "Lay-off" which is present in some IT contracts of employment. You need to read your employment contracts carefully.

Lay-off is something that is used in the construction industry a lot, but some IT companies are using it too. I know people to whom this has happened.

If there is a lay-off clause in the contract of employment, then the employer can invoke the clause. Sometimes the clause says "If there is a downturn in work you can be laid-off without notice and without pay"

And some employers are invoking precisely that clause.

They leave you without pay for long enough, hoping you will resign and get another job, and thereby avoid making a redundancy pay-out.

Now, whether the employee can claim constructive dismissal is a point the lawyers need to argue out.

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Flame

Want another Nortel pension article?

Then see if you can find out what's happened to the tens of thousands (never mind 300) of Nortel UK ex-employees (ie pensioners-to-be) - who's protecting their pensions?

http://www.guardian.co.uk/business/2009/mar/24/nortel-pension-fund-deficit

"the one-time FTSE 100 firm that collapsed in January has a pension deficit of £1.5bn - more than five times the value of the shortfall carried in the company's last accounts.

...

there are a further 42,000 retired employee members of the firm's pension scheme

...

the Pension Protection Fund (PPF) is likely to take a £900m hit from the collapse of Nortel"

Peter Skyte @ Unite The Union (before that, at MSF) may be able to help you if you want a different starting point. Or maybe not, if the Nortel workers were foolish enough to trust the management promises/threats that they didn't need a union.

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Shameless ...

These are people, not assets ... completely shameless

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Anonymous Coward

France

I thought part of Canada was part of France?

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Yikes, bad news

What are the laws like in Sweden for paying redundancy? My cousin works for them in Stockholm, would be very bad for her if she just got statuatory (if there is statuatory redundancy in Sweden that is)

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Anonymous Coward

E&Y

Would be. We took them to court - eventually got something, think it took about 5 years

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Severence pay is a privilege, not a right.

I've been caught in the layoff net at least six times. The last time I received any severance pay was 1981.

But I'll tell you what's disturbing: As reported by the Washington Post, more and more U.S. companies that lay off staff are trying to get out of paying penalties into the state's unemployment fund, by claiming that the employee was fired for cause...even if the employee had recently received nice raises and kudos for a job well done.

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Occupy!!

The Ford workers in Visteon occupied the place demanding proper redundancies. Can you imagine an IT worker doing the same?

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re: redundancy

Why do some assets erm i mean people think they are somehow entitled to a big payout because they have seen a handful of new stories about execs and their golden parachutes; that is definitely not the norm. Boo hoo learn to take care of yourselves.

Nortel has been in bad shape for a while. Anyone seen any focussed nortel sales & marketing efforts or any competitive products lately? These situations are generally the result of a team effort it's not just 'management', the parent company, 'economic conditions' etc... Blame who you want but Darwin says it's usually just the worst of what dead flesh remains that's gets cut at this stage.

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