10th June 2009 - PRESS RELEASE - NORTEL UK SEVERED FORUM
Ex-Nortel Employees.... strike again
Tuesday 9th June, saw former Nortel employees continue their campaign to raise attention to the shoddy way in which they have been treated. Encouraging Nortel, and their administrators Ernst & Young to negotiate over their severance terms.
The target this time was the Nortel Partner Focus event held at the Hilton London Metropole, 225 Edgware Road, London. The ex-Nortel team raised a two phase approach for their quest to highlight the unethical behaviour of Nortel to their Partners attending the event.
The first phase entered with placards, taking the organisers attention, whilst phase two slipped into the auditorium.
Nortel guessed this event may be a target for the team, so arranged to move the event within the hotel and paid for high-level security. So for the ex-Nortel team it was Mission Accomplished!!
After being ejected from the venue, the protestors set up outside the hotel hopeful of making partners of Nortel aware of how fickle contracts are in the company. If a corporate can dismiss 229 without upholding their contract of employment, how can they sign business contracts? The main reason for the protest – to bring awareness to the vulnerable partners and employees.
It has been announced that there will be more redundancies at Nortel across the UK and that they are also considering closing their Harlow office. Those employees are at risk of redundancy – particularly those that cannot move to tele-working, they have to ask themselves: will they be treated as abominably as those dismissed in March? ie walked out the door with nothing.
These new announcements came within a few days of Nortel declaring bonuses to be paid to employees and executives. Under the scheme many ordinary employees will receive a quarterly bonus in excess of 7% of their annual salary, and executives will share in a larger multi million-dollar pot. A former employ said “This is like giving employees a 28% pay rise – in a company which is insolvent and choosing to renege on the contracts of those it lays off”. “It will do nothing to raise morale amongst workers who fear getting the tap on the shoulder and at a moment’s notice escorted out of the building. It would have been far better to have used the money to pay severance and honour employee contracts.
How much less ethical and how much more incompetent can the executive of Nortel get?
You will recall that 229 people across 3 of the Nortel UK sites (Maidenhead, Harlow and Monkstown) were made redundant in March this year without the statutory consultation period, pay in lieu of notice or any severance package thus leaving that burden to the UK tax payer, one has to ask why?
Also why don’t Nortel and their unethical administrators take the ex-employees to the negotiating table and save themselves the embarrassment of being in such a negative news situation. After all, things are bad enough when you are in administration without additional unrest.
The target this time was the Nortel Partner Focus event held at the Hilton London Metropole, 225 Edgware Road, London. The ex-Nortel team raised a two phase approach for their quest to highlight the unethical behaviour of Nortel to their Partners attending the event.
The first phase entered with placards, taking the organisers attention, whilst phase two slipped into the auditorium.
Nortel guessed this event may be a target for the team, so arranged to move the event within the hotel and paid for high-level security. So for the ex-Nortel team it was Mission Accomplished!!
After being ejected from the venue, the protestors set up outside the hotel hopeful of making partners of Nortel aware of how fickle contracts are in the company. If a corporate can dismiss 229 without upholding their contract of employment, how can they sign business contracts? The main reason for the protest – to bring awareness to the vulnerable partners and employees.
It has been announced that there will be more redundancies at Nortel across the UK and that they are also considering closing their Harlow office. Those employees are at risk of redundancy – particularly those that cannot move to tele-working, they have to ask themselves: will they be treated as abominably as those dismissed in March? ie walked out the door with nothing.
These new announcements came within a few days of Nortel declaring bonuses to be paid to employees and executives. Under the scheme many ordinary employees will receive a quarterly bonus in excess of 7% of their annual salary, and executives will share in a larger multi million-dollar pot. A former employ said “This is like giving employees a 28% pay rise – in a company which is insolvent and choosing to renege on the contracts of those it lays off”. “It will do nothing to raise morale amongst workers who fear getting the tap on the shoulder and at a moment’s notice escorted out of the building. It would have been far better to have used the money to pay severance and honour employee contracts.
How much less ethical and how much more incompetent can the executive of Nortel get?
You will recall that 229 people across 3 of the Nortel UK sites (Maidenhead, Harlow and Monkstown) were made redundant in March this year without the statutory consultation period, pay in lieu of notice or any severance package thus leaving that burden to the UK tax payer, one has to ask why?
Also why don’t Nortel and their unethical administrators take the ex-employees to the negotiating table and save themselves the embarrassment of being in such a negative news situation. After all, things are bad enough when you are in administration without additional unrest.
23rd June 2009 - PRESS RELEASE - NORTEL UK SEVERED FORUM
The ex-employees of Nortel Networks (in administration) that were made redundant in March, took to a
peaceful protest on Westacott Way, Maidenhead on Thursday 18th June. Some 30 protesters were there slowing the traffic travelling down Westacott Way to the Nortel offices offering drivers a leaflet advising potential ‘at risk’ ex-colleagues of what they can expect as the next round of redundancies loomed. Whilst handing out these leaflets the Nortel Administrators sent out an email stating some 150 UK employees would be made redundant at the end of June/early July under the same terms as those in March, no consultancy period, no pay in lieu of notice and no consideration to their legal responsibilities or duty of care to employees.
Maternity Leave – no such consideration: One such employee, on maternity leave with a 4 week old daughter has been made redundant after 22 years at the Maidenhead offices. The loyalty, the care and respect for a company that operated on their ethics, where are they now!?!?! Imagine, no salary, no job to go back to, and currently unemployable in the market place as she is on maternity leave. What a future for her young one!
The lone protestor on the drive to the Nortel offices Wednesday 24th June:
Ex-Nortel employee Steve Armstrong, made redundant in March, still feels so strongly about the company he worked for always talking to employees about ethics, ethical training, ethical exams, compassion, and understanding that he took his own one man protest to Westacott Way today. He was later joined by ex-Nortel employee Mira Willet.
Ex-colleagues stopped to talk to him, and some stopped for advice on what to do next as they had received their at risk letters.
More action to follow on Monday 29th June, when all the 150 new redundancies will have been implemented, and the current group will be out to help the newly identified redundant employees.
The ex-employees of Nortel Networks (in administration) that were made redundant in March, took to a
peaceful protest on Westacott Way, Maidenhead on Thursday 18th June. Some 30 protesters were there slowing the traffic travelling down Westacott Way to the Nortel offices offering drivers a leaflet advising potential ‘at risk’ ex-colleagues of what they can expect as the next round of redundancies loomed. Whilst handing out these leaflets the Nortel Administrators sent out an email stating some 150 UK employees would be made redundant at the end of June/early July under the same terms as those in March, no consultancy period, no pay in lieu of notice and no consideration to their legal responsibilities or duty of care to employees.
Maternity Leave – no such consideration: One such employee, on maternity leave with a 4 week old daughter has been made redundant after 22 years at the Maidenhead offices. The loyalty, the care and respect for a company that operated on their ethics, where are they now!?!?! Imagine, no salary, no job to go back to, and currently unemployable in the market place as she is on maternity leave. What a future for her young one!
The lone protestor on the drive to the Nortel offices Wednesday 24th June:
Ex-Nortel employee Steve Armstrong, made redundant in March, still feels so strongly about the company he worked for always talking to employees about ethics, ethical training, ethical exams, compassion, and understanding that he took his own one man protest to Westacott Way today. He was later joined by ex-Nortel employee Mira Willet.
Ex-colleagues stopped to talk to him, and some stopped for advice on what to do next as they had received their at risk letters.
More action to follow on Monday 29th June, when all the 150 new redundancies will have been implemented, and the current group will be out to help the newly identified redundant employees.
30th June 2009 - PRESS RELEASE - NORTEL UK SEVERED FORUM
MORE REDUNDANCIES AT NORTEL UK- another 150 today and sales teams being notified tomorrow.
Severed ex-Nortel employees again picketed the EMEA Head office of the telecoms giant Nortel yesterday in support of 150 colleagues who are being made redundant today. See interviews and video clips on http://www.maidenhead-advertiser.co.uk/news/article-11755-video-nortel-makes-more-cuts/ provided by the Maidenhead Advertiser, their reporter Sonia Kapur joined the group at lunch and listened during an informal Q&A session organised by colleagues who were in the first wave of redundancies in March.
Colleagues in Monkstown, Belfast also picketed Stormont yesterday, bringing the Nortel redundancy issues to the public. All Nortel sites are united in their quest for their rights and their pay in lieu of notice and the consultation period.
One of those drastically affected in this round is a lady, on maternity leave, now with 4 week old daughter, main family breadwinner, redundant, unemployable as she is on maternity leave, no one is sure if she will get statutory maternity benefit as she went on maternity leave when the company was in administration, if she does it could take some 3 months or more, what is she to do in the meantime? She gave 22 years of her life to the company, totally loyal, working through the night sometimes when bids had to be submitted to clients – and this is her payback....where is the logic, where is the support, where is Nortel!!
We understand that today/tomorrow, sales teams that have closed the second quarter for Nortel, will get their severance notice, with their final day on 7th July. We await more news on this.
Our questions to the UK government and E&Y the administrators of Nortel UK are:
MORE REDUNDANCIES AT NORTEL UK- another 150 today and sales teams being notified tomorrow.
Severed ex-Nortel employees again picketed the EMEA Head office of the telecoms giant Nortel yesterday in support of 150 colleagues who are being made redundant today. See interviews and video clips on http://www.maidenhead-advertiser.co.uk/news/article-11755-video-nortel-makes-more-cuts/ provided by the Maidenhead Advertiser, their reporter Sonia Kapur joined the group at lunch and listened during an informal Q&A session organised by colleagues who were in the first wave of redundancies in March.
Colleagues in Monkstown, Belfast also picketed Stormont yesterday, bringing the Nortel redundancy issues to the public. All Nortel sites are united in their quest for their rights and their pay in lieu of notice and the consultation period.
One of those drastically affected in this round is a lady, on maternity leave, now with 4 week old daughter, main family breadwinner, redundant, unemployable as she is on maternity leave, no one is sure if she will get statutory maternity benefit as she went on maternity leave when the company was in administration, if she does it could take some 3 months or more, what is she to do in the meantime? She gave 22 years of her life to the company, totally loyal, working through the night sometimes when bids had to be submitted to clients – and this is her payback....where is the logic, where is the support, where is Nortel!!
We understand that today/tomorrow, sales teams that have closed the second quarter for Nortel, will get their severance notice, with their final day on 7th July. We await more news on this.
Our questions to the UK government and E&Y the administrators of Nortel UK are:
As there is money to pay obscene bonuses to executives around the globe, some 9 million in the UK alone, why can’t they pay UK redundancy?
As there is money to pay company-wide bonuses for the first quarter, why can’t they pay UK redundancy?
As there is money to pay (we believe – awaiting confirmation ) 45 days pay for each year worked for the company in Nortel Spain, why can’t they pay UK redundancy?
As there is money to pay (We believe – awaiting confirmation) up to 6 months salary in Germany, why can’t they pay UK redundancy?
Why is there no money to pay Nortel UK employees their redundancy dues ?
Why has the UK tax payer to pay out yet again?
As these issues are now raised with the EU Employment Commissioner, does the UK government want more egg on it’s face as it takes the EU parliament to bring the UK into line?
Redundant employees are not asking for anything more than is legally expected. As it stands today, the UK tax payer is paying out minimal payments, nothing like that due to those that have worked in excess of 20, 30, 40 years with this one company – why should the tax payer carry the burden??
Why is there no money to pay the UK people redundancy, how is there money for all these other spurious payments?
The answer should E&Y want it......
If E&Y (the administrators) believe the redundancy forum are hurting Nortel with all the negative press Nortel are getting in the media, why doesn’t E&Y ask the creditors for permission to pay off the first two waves of penniless redundant people so that Nortel will have credable assets to sell instead of a worthless company and reputation. All that is required is negotiation.
22nd July 2009 - PRESS RELEASE - NORTEL UK SEVERED FORUM
HARDSHIP FOR UK NORTEL WORKERS WHILST FRENCH GERMAN AND SPANISH ENJOY GOVERNMENT SUPPORT
Ex-employees of the Canadian communications giant, Nortel, are demanding to know why agreements on severance pay are being reached in France ,Germany and Spain, whilst the UK Government stands alone in providing them with no protection, despite Dr Alasdair McDonnell MP raising this in Prime Minister’s question time on 22 April 2009, and Gordon Brown committing to review the case.
Ex-employees of the Canadian communications giant, Nortel, are demanding to know why agreements on severance pay are being reached in France ,Germany and Spain, whilst the UK Government stands alone in providing them with no protection, despite Dr Alasdair McDonnell MP raising this in Prime Minister’s question time on 22 April 2009, and Gordon Brown committing to review the case.
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Last week saw the French Secretary of State Christian Estrosi meet with ex- Nortel staff to settle redundancy claims with Ernst & Young, Nortel’s Administrators.
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In Spain an agreement is being negotiated whereby ex employees of Nortel would be entitled to 45 days salary for each year worked.
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Staff made redundant from Nortel in Germany have been given 90 days consultation pay plus government support at 85% of their salary for six months.
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By comparison in the UK, Nortel, which is trading normally under Administrators Ernst & Young, carried out no statutory consultation of the redundancies, paid no redundancy money and provided no pay in lieu of notice, forcing ex employees to seek support from the Insolvency Service’s statutory redundancy scheme, whereby the UK tax payer picks up the bill. The employees were told of the redundancies just hours before being asked to leave the building.
The ex employees – made up of 229 redundancies that took place on 30 March 2009 and a further 150 in June 2009, from offices in Maidenhead, Harlow and Newtown Abbey in Northern Ireland – claim that their redundancies were illegal and amount to unfair dismissal.
These headline numbers hide the hardship and distress faced by Nortel’s ex-workers, some of whom have worked for the company for more than 30 years. For example:
The ex employees – made up of 229 redundancies that took place on 30 March 2009 and a further 150 in June 2009, from offices in Maidenhead, Harlow and Newtown Abbey in Northern Ireland – claim that their redundancies were illegal and amount to unfair dismissal.
These headline numbers hide the hardship and distress faced by Nortel’s ex-workers, some of whom have worked for the company for more than 30 years. For example:
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Daphne, who was dismissed while on maternity leave
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Pam, a primary breadwinner on maternity leave with a four week old baby
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Harry and Andy, both dismissed whilst on sick leave
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One member of the Territorial Army, posted in Afghanistan at the time of his redundancy, who should have enjoyed protection from the Reserve Forces Act 1996 and the Safeguard of Employment Act 1985, yet instead suffered the same indignity of dismissal without pay
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A group of MPs is doing its best to support the ex Nortel staff in the UK but it seems Lord Mandleson’s department, BIS (previously BERR), is on the side of Nortel and Ernst & Young. Nortel continues to trade normally and confirmed that its financial results saw an increase in its cash balance to $2.48 billion as at 31 March 2009, compared to $2.4 billion at the end of 2008.
Teresa May, MP for Maidenhead in whose constituency Nortel’s UK headquarters is located, has given her strong backing to the ex-employees, writing to Judge Latham, President of the Employment Tribunal Service, urging for the Employment Tribunals being brought by Nortel’s workers to be heard as soon as possible. The Tribunals are currently being delayed at the request of Ernst & Young.
The EU Commissioner for Employment Vladimir Spidla is investigating various EU contraventions. Namely 98/59/EC, 94/45/EC, 2002/14/EC, 98/59/EC, 2008/94/EC, all relating to due process in the light of redundancies of 99 people or more.
The ex employees are determined to continue their pressure on MPs and the government, although they find it distressing and confusing that their European counterparts receive protection and government assistance whilst they do not. A spokesperson for the ex-Nortel workers in the UK said: “In our opinion Nortel has acted illegally and unethically and we simply do not understand why we cannot find protection under EU employment law, nor why Ernst & Young is able to delay our cases being heard. We want the Tribunals to take place quickly and for a resolution to be reached. We are looking to the government to do what’s right here – not to protect Nortel – but to date its response has been hugely disappointing. For those within our group who are in desperate financial situations the effects of this strategy is affecting their welfare, their families and their futures.”
Teresa May, MP for Maidenhead in whose constituency Nortel’s UK headquarters is located, has given her strong backing to the ex-employees, writing to Judge Latham, President of the Employment Tribunal Service, urging for the Employment Tribunals being brought by Nortel’s workers to be heard as soon as possible. The Tribunals are currently being delayed at the request of Ernst & Young.
The EU Commissioner for Employment Vladimir Spidla is investigating various EU contraventions. Namely 98/59/EC, 94/45/EC, 2002/14/EC, 98/59/EC, 2008/94/EC, all relating to due process in the light of redundancies of 99 people or more.
The ex employees are determined to continue their pressure on MPs and the government, although they find it distressing and confusing that their European counterparts receive protection and government assistance whilst they do not. A spokesperson for the ex-Nortel workers in the UK said: “In our opinion Nortel has acted illegally and unethically and we simply do not understand why we cannot find protection under EU employment law, nor why Ernst & Young is able to delay our cases being heard. We want the Tribunals to take place quickly and for a resolution to be reached. We are looking to the government to do what’s right here – not to protect Nortel – but to date its response has been hugely disappointing. For those within our group who are in desperate financial situations the effects of this strategy is affecting their welfare, their families and their futures.”
ENDS
NOTES TO EDITORS:
1. At the same time as the initial round of redundancies took place (March 2009), Ernst & Young and the Canadian courts approved in excess of $23 million in bonus payouts to senior executives. Nortel in the UK has since paid bonuses to all its remaining staff.
2. In a statement last week, the London 2012 Organising Committee (Locog) said it had ended its contract with infrastructure supplier Nortel "on good terms".
3. A growing group of MPs have expressed shock at Nortel’s lack of care, disregard for ethical behaviour and employment contracts, and the apparent flouting of UK and EU employment law. * Please see the full list of MPs’ names at the end of these notes.
4. Caroline Lucas, MEP, has written to the European Commission about the case, urging them to review UK employment law in order to bring it in line with other EU member states, as well as put pressure on the UK to seek redress for British workers.
5. Brooks Newmark, MP Braintree (Essex), wrote on 24 June 2009 to Darryl Edwards (Nortel President Global Carrier Sales) and Mario diMascio (Vice President of Enterprise EMEA), requesting a meeting. A response has been received from Mr Edwards but no response has yet been received from Mr diMascio. The request for a meeting has been ignored.
6. Nortel entered Administration in the UK on 14 January 2009 after declaring Chapter 11 in the US. The company continues to trade normally under Administrators, Ernst & Young, who refuse to accept that there is any grievance to answer against them or Nortel. Ernst & Young has written to redundant staff announcing that they refuse to communicate with them.
1. At the same time as the initial round of redundancies took place (March 2009), Ernst & Young and the Canadian courts approved in excess of $23 million in bonus payouts to senior executives. Nortel in the UK has since paid bonuses to all its remaining staff.
2. In a statement last week, the London 2012 Organising Committee (Locog) said it had ended its contract with infrastructure supplier Nortel "on good terms".
3. A growing group of MPs have expressed shock at Nortel’s lack of care, disregard for ethical behaviour and employment contracts, and the apparent flouting of UK and EU employment law. * Please see the full list of MPs’ names at the end of these notes.
4. Caroline Lucas, MEP, has written to the European Commission about the case, urging them to review UK employment law in order to bring it in line with other EU member states, as well as put pressure on the UK to seek redress for British workers.
5. Brooks Newmark, MP Braintree (Essex), wrote on 24 June 2009 to Darryl Edwards (Nortel President Global Carrier Sales) and Mario diMascio (Vice President of Enterprise EMEA), requesting a meeting. A response has been received from Mr Edwards but no response has yet been received from Mr diMascio. The request for a meeting has been ignored.
6. Nortel entered Administration in the UK on 14 January 2009 after declaring Chapter 11 in the US. The company continues to trade normally under Administrators, Ernst & Young, who refuse to accept that there is any grievance to answer against them or Nortel. Ernst & Young has written to redundant staff announcing that they refuse to communicate with them.
7. Ernst & Young refused a request from one of the claimant’s Solicitors (the request was a courtesy and legal formality) for the case to be brought to Tribunal. Although this makes no difference to the Tribunal proceedings, refusal in these instances is unheard of and could be construed as a reflection of the Administrators’ lack of regard for UK law.
8. A website has been set up by the Ex Nortel workers to highlight the activities of both Nortel and Ernst and Young and also to inform those who remain employees of Nortel so that they are better prepared for the next round of dismissals. This can be found at http://www.shameonyounortel.co.uk/
List of MPs engaged in communication with Ernst & Young and Nortel in support of Nortel ex employees, as mentioned in (3.) above:
Bernard Jenkin MP
Bill Rammell MP
Brooks Newmark MP
David Lidington MP
Dr Alasdair McDonnell MP
Maria Miller MP
Mark Oaten MP
Mark Prisk MP
Mark Pritchard MP
Nadine Dorries MP
Paul Goodman MP
Peter Bottomley MP
Rev Dr William McCrea MP
Rob Wilson MP
Rt Hon Andrew Mackay MP
Rt Hon James Arbuthnot MP
Rt Hon John Redwood MP
Rt Hon Theresa May MP
Tim Boswell MP
Tom Levitt MP
The following MP’s are engaged with their constituents regarding these issues:
Alan Campbell
Andrew Mackay MP
Andrew Rosindell
Barbara Follett
Catherine Zena Bearder
Charles Walker
Colin Breed
David Burrowes
David Wilshire
Diane Abbott
Dr Alasdair McDonnell MP
Emily Thornberry M
Eric Pickles
Fiona MacTaggart
Gerald Howart
Grant Shapps
Hugh Bayley
Humfrey Malins CBE
Ian Lucas
James Arbuthnot
James Brokenshire
James Clappison
Jeffrey M Donaldson
Jeremy Corbyn
Jeremy Wright
John Greenway
John Randall
John Redwood
Karen Buck
Lady Sylvia Hermon
Lorely Burt
Mark Francois
Martin Salter
Meg Hillier
Michael Mates
Owen Paterson
Parmjit Dhanda
Phyllis Starkey
Sammy Wilson
Siobhain McDonagh
Theresa Villiers
Virendra Sharma
Yvette Cooper
Bill Rammell MP
Brooks Newmark MP
David Lidington MP
Dr Alasdair McDonnell MP
Maria Miller MP
Mark Oaten MP
Mark Prisk MP
Mark Pritchard MP
Nadine Dorries MP
Paul Goodman MP
Peter Bottomley MP
Rev Dr William McCrea MP
Rob Wilson MP
Rt Hon Andrew Mackay MP
Rt Hon James Arbuthnot MP
Rt Hon John Redwood MP
Rt Hon Theresa May MP
Tim Boswell MP
Tom Levitt MP
The following MP’s are engaged with their constituents regarding these issues:
Alan Campbell
Andrew Mackay MP
Andrew Rosindell
Barbara Follett
Catherine Zena Bearder
Charles Walker
Colin Breed
David Burrowes
David Wilshire
Diane Abbott
Dr Alasdair McDonnell MP
Emily Thornberry M
Eric Pickles
Fiona MacTaggart
Gerald Howart
Grant Shapps
Hugh Bayley
Humfrey Malins CBE
Ian Lucas
James Arbuthnot
James Brokenshire
James Clappison
Jeffrey M Donaldson
Jeremy Corbyn
Jeremy Wright
John Greenway
John Randall
John Redwood
Karen Buck
Lady Sylvia Hermon
Lorely Burt
Mark Francois
Martin Salter
Meg Hillier
Michael Mates
Owen Paterson
Parmjit Dhanda
Phyllis Starkey
Sammy Wilson
Siobhain McDonagh
Theresa Villiers
Virendra Sharma
Yvette Cooper
The Harlow Herald - HARLOW: Former Nortel workers march on Parliament
12:13 - 12 May 2009
FORMER employees of Nortel in Harlow lobbied MPs at the Houses of Parliament today (Tuesday) about their unfair dismissal claims.
The Canadian communications giant entered administration on January 14 and on March 30 made 229 redundancies, many at its London Road facility in Harlow. Offices in Maidenhead and Northern Ireland were also affected.
Redundant workers claim administrators Ernst & Young gave some employees minutes notice; failed to give 90 days of consultation and 90 pay in lieu of notice with benefits; and did not make redundancy payments despite Nortel continuing to trade.
Ernst & Young has repeatedly stated that they acted within the law.
Protesters went to parliament today (Tuesday) before demonstrating outside Ernst & Young's London offices. Tomorrow (Wednesday) they plan to visit Nortel's European headquarters in Maidenhead to hand out leaflets to the company's customers and partners summarising the treatment of its dismissed staff.
Nortel is a multinational telecommunications equipment manufacturer headquartered in Toronto, Canada and had a workforce of approximately 30,000 when it went into administration.
The Canadian communications giant entered administration on January 14 and on March 30 made 229 redundancies, many at its London Road facility in Harlow. Offices in Maidenhead and Northern Ireland were also affected.
Redundant workers claim administrators Ernst & Young gave some employees minutes notice; failed to give 90 days of consultation and 90 pay in lieu of notice with benefits; and did not make redundancy payments despite Nortel continuing to trade.
Ernst & Young has repeatedly stated that they acted within the law.
Protesters went to parliament today (Tuesday) before demonstrating outside Ernst & Young's London offices. Tomorrow (Wednesday) they plan to visit Nortel's European headquarters in Maidenhead to hand out leaflets to the company's customers and partners summarising the treatment of its dismissed staff.
Nortel is a multinational telecommunications equipment manufacturer headquartered in Toronto, Canada and had a workforce of approximately 30,000 when it went into administration.
18th May 2009 - PRESS RELEASE - NORTEL UK SEVERED FORUM
Ex-Nortel Employees.... the fight changes gear
Following the action in London and Belfast, last week of Ex-Nortel employees MP’s and MEP’s come out in support. Nortel made 229 people redundant on 30th March with little or no notice, and certainly no payment in lieu of notice or other related payment considerations. Gone are the niceties of letter writing by the sack load, the gloves are off!
Ernst & Young (Administrators) and Nortel have clearly flouted EU and UK Employment law. While this trauma, for that is what it is for those involved, the UK tax payer picks up the bill for payments that E&Y and Nortel have reneged on – why should they?
On the 12th May the ex-Nortel team met with MP’s in the Houses of Parliament: Bernard Jenkin MP - North Essex, Andrew MacKay MP - Bracknell, Theresa May MP - Maidenhead, John Redwood MP - Wokingham, Tom Levitt MP - High Peak Derbyshire, all were shocked at the blatant lack of care, disregard to ethical behaviour and employment contracts and the issues of not adhering to UK and EU law.
Andrew MacKay (Bracknell) said the situation with Germany and France getting compensation compared to UK situation was absolutely a key piece of information, he asked for this to be emphasized in correspondence. MacKay also undertook to ask questions of Pat McFadden Labour's Business Minister and Chair of The BERR (Department for Business Enterprise & Regulatory Reform).
Theresa May, whose constituency Nortel’s EMEA headquarters sits, is taking up the
challenge on behalf of the ex-Nortel group, and will be asking questions of various
government bodies and MP’s including Pat McFadden.
Theresa aims to ask all involved MPs to write to Minister Pat McFadden who reports to Lord Mandelson (Secretary of State for Business, Enterprise & Regulatory Reform). If the response is unsatisfactory she will get MPs to force debate with ministers and officials on the matter. Ministers don’t like this approach as they are FORCED to answer questions and face the issues.
Caroline Lucas MEP is also aware of the Nortel situation and will be writing immediately to the European Commission about this case and urging them to review UK employment law in order to bring it in line with other EU member states, as well as put pressure on the UK to seek redress for British workers.
Momentum in both Houses of Parliament is mounting, Ernst and Young and Nortel will
need to answer questions posed by MP’s and MEP’s.
The ex- Nortel band then headed
off to the south bank and the Ernst and Young offices in More Place, London SE1
to see if they could meet with administrators. This was a key moment as the last
correspondence from E&Y stated that they were not going to proceed with the Nortel
grievance process and would not communicate with ex employees any more.
Administrators Hill and Harris had cleared their diaries as the protest had been
leaked to E&Y and they met with a nominated four ex-Nortel employees to discuss next
steps. The outcome is still stalemate. No movement by E&Y.
So phase B of the ex-Nortel
employees strategy kicks into play and will see Maidenhead, Harlow and Monkstown
step up the pressure for remuneration and recognition.
4th August 2009 - PRESS RELEASE - NORTEL UK SEVERED FORUM
Ex-Nortel employees unite, on Thursday 6th August, to demonstrate outside the offices of Ernst & Young; the administrators for the ailing Nortel Telecoms (in administration).
Ex-employees from Maidenhead and Harlow will be at E&Y in Moor London Place, whilst their colleagues will be at E&Y Belfast to peaceably demonstrate the passing of such a great company as various parts of it are sold off to different buyers.
It’s now being run by what seemingly appears to be an unethical and ruthless Insolvency Practitioner, Ernst and Young.
Soon, in excess of 1000 people will have been dismissed in Europe from Nortel Networks over the last five months. In the UK the statutory rights under UK law have been un-apologetically and blatantly violated. All have been left to the ravages of life with NO Severance pay, NO consultation period, and NO notice. This was an ethical company, but it has continued trading and paying themselves fat-cat bonuses whilst others lose everything.
E&Y have however settled redundancy claims in other parts of Europe, so why not in the UK?
People in the UK are losing their homes, families are falling apart, even main family breadwinners on maternity leave and a territorial soldier returning home from Afghanistan have been axed without a penny. E&Y are powerful against the individual: they hinder and stop grievance processes, employment tribunals are stalled while the finances of Nortel UK dwindle while paying the settlement claims in other countries. Some European settlements are above the country minimum – why?
Even though the EU Commissioner for Employment is investigating why the UK Government is not upholding Employment law, this takes time and time is what these people don’t have.
Legal articles on Insolvency say...... "Failing to carry out collective consultation can lead to claims for protective awards. These can greatly increase the employer’s debt, as the starting point for calculating the awards will be 90 days pay for every redundant employee." How can E&Y be representing their creditors legally and credibly when leading Nortel into expensive protective awards? Surely if the creditors knew of this action they would call E&Y to account?
All the severed employees ask for is adherence to UK & EU Employment law. The door is open, and it’s time for E&Y to enter if they want to be seen to do the right thing for their creditors and ex-employees alike.
The ex-Norteliers can be contacted at exnorteluk@googlemail.com or 07721 619246
Ex-employees from Maidenhead and Harlow will be at E&Y in Moor London Place, whilst their colleagues will be at E&Y Belfast to peaceably demonstrate the passing of such a great company as various parts of it are sold off to different buyers.
It’s now being run by what seemingly appears to be an unethical and ruthless Insolvency Practitioner, Ernst and Young.
Soon, in excess of 1000 people will have been dismissed in Europe from Nortel Networks over the last five months. In the UK the statutory rights under UK law have been un-apologetically and blatantly violated. All have been left to the ravages of life with NO Severance pay, NO consultation period, and NO notice. This was an ethical company, but it has continued trading and paying themselves fat-cat bonuses whilst others lose everything.
E&Y have however settled redundancy claims in other parts of Europe, so why not in the UK?
People in the UK are losing their homes, families are falling apart, even main family breadwinners on maternity leave and a territorial soldier returning home from Afghanistan have been axed without a penny. E&Y are powerful against the individual: they hinder and stop grievance processes, employment tribunals are stalled while the finances of Nortel UK dwindle while paying the settlement claims in other countries. Some European settlements are above the country minimum – why?
Even though the EU Commissioner for Employment is investigating why the UK Government is not upholding Employment law, this takes time and time is what these people don’t have.
Legal articles on Insolvency say...... "Failing to carry out collective consultation can lead to claims for protective awards. These can greatly increase the employer’s debt, as the starting point for calculating the awards will be 90 days pay for every redundant employee." How can E&Y be representing their creditors legally and credibly when leading Nortel into expensive protective awards? Surely if the creditors knew of this action they would call E&Y to account?
All the severed employees ask for is adherence to UK & EU Employment law. The door is open, and it’s time for E&Y to enter if they want to be seen to do the right thing for their creditors and ex-employees alike.
The ex-Norteliers can be contacted at exnorteluk@googlemail.com or 07721 619246
