November 26, 2010 – Yesterday, the Canadian Senate’s banking committee recommended that the upper house not proceed with Bill S-216, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act in order to protect beneficiaries of long term disability benefits plans.
Senator Art Eggleton, the sponsor of the bill, said he’d try to “revive” Bill S-216 in the next reporting stage, not yet scheduled.The Bankruptcy and Insolvency Act would ensure that 400 disabled Nortel employees, facing lay-offs by the end of the year, would still receive their benefits.The bill, introduced in March, split the Senate committee along party lines, and was voted down six to five by the Conservative majority.
„This is extremely disappointing.‰ Said Eggleton after the vote. „There are over 400 Nortel employees who have been hanging by a thread for some time now. Remember this bill was introduced in the spring and was given second reading on June 17. These people are running out of time. Some of them are here today. It is the end of the year that they are going to be officially terminated as employees, their incomes dropped substantially ˆ they are already dropped substantially ˆ and their medical benefits cut off.‰
Earlier this fall, CARP published a letter from MPP and Liberal pension critic Judy Sgro, seeking support form CARP members for Bill S-216. To express your continued support for the bill…….