30 Jun 09 - The 150 impacted UK employees are made redundant. Some were told today and will be severed on the 7 Jul 09.
29 Jun 09 - Ex-Nortel UK employees from Monkstown demonstrate at Stormont. SDLP Deputy Leader and Trade and Enterprise & Trade Spokesperson, Dr Alasdair McDonnell joins them and shows his support.
22 Jun 09 - The next wave of redundancies in the UK start. Approx 150 Nortel employees will be impacted.
20 Jun 09 - Nortel announce proposed sale of CDMA business and LTE Access assets to Nokia Siemens Networks for $650M.
18 Jun 09 - After being summoned to appear in front of the Canadian House of Commons standing committee on finance, Nortel CEO Mike Zafirovski attempts to defend the company’s decision to pay bonuses to senior execs and not pay severance to severed employees.
See the playback at: http://parlvu.parl.gc.ca/Parlvu/asx/playlist.aspx?files=/2009/2009-06/000134b3.wmv
18 Jun 09 - Ernst & Young, the Joint Administrators announce approximately 150 redundancies in the UK. At-risk discussions to take place between the 22nd and 30th June. For employees confirmed for this selection, employment will end either on the 30th June or 7th July. Most notifications will be completed by the 30th June.
16 Jun 09 - After the Canadian House of Commons standing committee on finance had been rebuffed in its attempt to ask Nortel executives why they were eligible for bonuses while thousands of employees are being let go without severance, Mike Z. has been summoned to Ottawa and ordered to appear on Thursday 18 Jun 09.
13 Jun 09 – Ernst & Young have forced the Employment Tribunal hearing to be delayed for 3 more months. This hearing would establish the legality of E&Y not complying with employment law with regards to consultation period. One reason for the delay given by E&Y is that additional employees may be treated the same way and so may need to be included in the claim.
11 Jun 09 - Nortel turns down meeting requested by Canadian House of Commons finance committee.
3 Jun 09 - Nortel announce that there are to be more redundancies in the UK. Numbers, Location and Timescale's not advised.
3 Jun 09 - UK MP’s demand a meeting at Parliament with Nortel UK Administrators over concerns about the conduct of the administration’s treatment of employees. In the meeting E&Y reveal that in the UK retention bonuses will total $9m. The summaries of the meeting published by MP’s and E&Y are very different.
2 Jun 09 - Canadian House of Commons finance committee request a meeting with Senior Nortel Executives to explain why it has slashed pension payments and not offered severance to ex-employees, while still offering bonuses to senior executives.
28 May 09 - AIP Bonus paid to all who worked for Nortel for more than 45 days in Q1.
22 May 09 - Nortel has again received Ontario Superior Court of Justice approval to extend its bankruptcy protection by another 90 days. This time to 11 Sep 09.so it can “continue to develop a restructuring strategy”. Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., also granted Nortel until 10 Nov 09, to win creditor support for the proposal
12 May 09 - Former Nortel UK employees, went to Parliament today to meet with MP's. They then demonstrated in front of Ernst & Young’s London office. The workers have stated that Nortel broke employment laws by not giving them the statutory 90 days consultation before making redundancies. Administrators Ernst & Young, claim that Nortel has acted within the law.
3 May 09 - Ernst & Young issue a letter stating that they will no longer enter in correspondence with regard to any outstanding grievance.
28 Apr 09 - Nortel has received Ontario Superior Court of Justice approval to extend its bankruptcy protection by another 90 days to July 30, 2009 so it can “continue to develop a restructuring strategy”.
26 Apr 09 - Ernst & Young send letter claiming it is not practicable to manage the grievance process.
16 Apr 09 - Ernst & Young propose to use a modified grievance process to manage claims. Most staff decline and request the use of the standard process.
8 Apr 09 - Concerned over the recent UK instant redundancies, over 150 French employees appeared for a spontaneous demonstration during a monthly meeting in Chateaufort between Nortel administrators, Ernst & Young and staff representatives.
8 Apr 09 - Letter of formal complaint sent to Ernst & Young on behalf of group.
1st Week Apr 09 - All severed employees send individual grievance letters to Ernst & Young claiming unfair dismissal.
30 Mar 09 – Employees attend scheduled meetings on the three sites with Ernst & Young. Employees in Monkstown, Co. Antrim given one hours notice of the meeting. All 229 UK staff in attendance at the meetings severed immediately by Nortel / Ernst & Young. Employment terminated from Midnight. This action to breach requirement for consultation period and employee contracts was taken by E&Y despite their specific earlier commitment to honouring contracts. When pressed for justification E&Y only say that they “can’t afford to pay for consultation and notice periods”. This is despite committing to large bonus payments. E&Y are also in breach of the requirement to notify the UK government (BERR) before making such a large group redundant.
27 Mar 09 – Selected employees in Maidenhead and Harlow sent invites late in the afternoon to attend a meeting on Mon 30 Mar at 10.30 to discuss company restructuring with Ernst & Young.
24 Mar 09 - A report is produced on the company’s U.K. pension fund. The deficit is £1.5bn - more than five times the value of the £273-million shortfall carried in the company’s last accounts. The losses could be carried by the Pension Protection Fund placing the burden on the taxpayer.
20 Mar 09 - To keep the senior management team engaged during Nortel’s restructuring process, Nortel seeks court approval to approve US$23-million bonus plan. This is in addition to the court approval earlier this month that approved a $22-million incentive plan for about 880 employees.
In addition, a Canadian court has approved an incentive plan that could give eight senior executives access to $7.3-million in potential bonuses.
Nortel claims CEO Mike Zafirovski will not receive this bonus.
19 Mar 09 - Nortel offer a deal to former Canadian employees. If they want early access to their pensions and the retirement medical plans, they have to surrender their claim to severance payments.
5 Mar 09 - Nortel requests court approval for its Key Executive Incentive Plan (KEIP) and the Key Employee Retention Plan (KERP). If implemented, the plans could see $45M in bonuses paid out to nearly 900 employees, including $23M under KEIP, which includes senior executives.
In the report, Ernst & Young advises that while the court approve the KEIP and KERP plans, it does not include senior executives within KEIP.
Ernst & Young advised that Nortel plans to request approval for the KEIP for senior executives on or about 20 Mar 09..
28 Feb 09 - Nortel announces that a proposed $45-million performance-and-retention bonus plan for 972 key executives and other staff also includes a range of employees outside management ranks. They advise that all other employees are eligible for a separate annual incentive plan which will be paid quarterly. The amount available under this plan.has not been disclosed. Nortel estimates total payments under KEIP could be about $23M.
25 Feb 09 – Nortel announce a further 3,200 global redundancies, in addition to the 1,800 announced on 10 Nov last year (this figure was originally 1,300, and it is a mystery where the additional 500 came from). There is no indication as to how many from which regions or which areas of the business will be impacted.. No UK employees put at risk.
11 Feb 09 - Nortel’s bid to postpone the annual shareholders meeting has received court approval.
5 Feb 09 - Nortel requests Canadian court approval to not hold an AGM with the shareholders.
21 Jan 09 - It was highlighted on external web sites (eg http://www.networkworld.com/community/node/37608) that Mike Zafirovski had being using one for his personal commuting between Chicago and Toronto despite the company’s financial difficulties, Nortel's two corporate jets are grounded., saving $1M a month.
18 Jan 09 - The remainder and majority of the redundant employees from December do not receive their promised severance packages and now become creditors for their money as Nortel is now in administration.
15 Jan 09 - Ernst & Young issue a statement that business would continue as normal, all contracts of employment remain unaffected and there were no planned redundancies.
14 Jan 09 - Nortel Networks UK ceases contributions to the Defined Benefit pension scheme impacting 43,000 scheme members.
14 Jan 09 - Nortel enters Chapter 11 in US and CCAA in Canada with Ernst & Young as Monitors. Nortel Networks UK goes into voluntary administration but continues trading with Ernst & Young appointed as Administrators.
17 Dec 08 - Nortel terminates its Employee Stock Purchase Plan (ESSP)
16 Dec 08 - Some of the redundant employees receive their severance packages in the December payroll.
Dec 08 - A mixture of voluntary and compulsory redundancies take place in the UK (exact numbers not known). All redundant employees are promised full severance packages and are given full details as to how much they will receive.
10 Dec 08 - Nortel Vice President Ronald Alepian advises that there is “no bankruptcy filing imminent”
10 Dec 08 - The Wall Street Journal reports that Nortel are exploring the option of Creditor Protection (Chapter 11 / Administration).
Late Nov 08 - Some leaving dates for redundant employees are moved back by one week. From 11 to 18 Dec 08.
Nov 08 - Many UK departments within Nortel encourage employees to apply for Voluntary Redundancy. All are promised full severance packages and are given full details as to how much they will receive.
10 Nov 08 - Nortel CEO, Mike Zafirovski announces that there will be 1300 redundancies, globally. When challenged as to why only 1300 on the call. His response was that the company simply could not afford to pay severance to a greater number of employees and that the number would have been greater if the funds would have allowed it.
Late Nov 08 - Some leaving dates for redundant employees are moved back by one week. From 11 to 18 Dec 08.
Nov 08 - Many UK departments within Nortel encourage employees to apply for Voluntary Redundancy. All are promised full severance packages and are given full details as to how much they will receive.
10 Nov 08 - Nortel CEO, Mike Zafirovski announces that there will be 1300 redundancies, globally. When challenged as to why only 1300 on the call. His response was that the company simply could not afford to pay severance to a greater number of employees and that the number would have been greater if the funds would have allowed it.