On 3rd June a group of MPs met the UK Administrators E&Y at the Houses of Parliament in London. There are two accounts of this published, the first on one of the MPs website, and the second sent to all UK staff by E&Y (both included below).
There are a number of differences: The MPs say they called the meeting whereas E&Y claim they called the meeting.
The MPs account indicates that many of the questions about E&Y behaviour which they describe as a "betrayal of massive proportions" were not satisfactorily answered, and concludes:
There are a number of differences: The MPs say they called the meeting whereas E&Y claim they called the meeting.
The MPs account indicates that many of the questions about E&Y behaviour which they describe as a "betrayal of massive proportions" were not satisfactorily answered, and concludes:
"Clearly there are legal and policy gaps in workers’ protection here. Serious questions have to be asked of a system of employment law and insolvency law which permits and encourages companies to abdicate all responsibility and protection towards their workers many of who like the workers in Nortel have given a life time of service” Dr. McDonnell added.
The E&Y account reads rather like a long-suffering schoolteacher explaining why they are right to a class of naughty children, a curious approach given that many MPs trained as lawyers and all will be well acquainted with statutes.
E&Y also twist the meaning of a letter sent to them by the government asking administrators to follow the law on consultation periods by suggesting that it absolves them from doing so.
Is this the way to try to regain the confidence of what remains of the remaining workforce ?
E&Y also twist the meaning of a letter sent to them by the government asking administrators to follow the law on consultation periods by suggesting that it absolves them from doing so.
Is this the way to try to regain the confidence of what remains of the remaining workforce ?
MP's account, from:
http://www.alasdairmcdonnell.com/news.php?id=253
(published: 3rd June 2009)
MCDONNELL CONTINUES FIGHT FOR NORTEL WORKERS’ RIGHTS
South Belfast MP Dr. Alasdair McDonnell today led a delegation of MPs in Westminster to meet with senior representatives of the Administrators Ernest & Young to discuss the treatment of Nortel workers in the Newtownabbey, Harlow and Maidenhead plants.
On Monday 30 March 2009, 228 employees at Nortel plants in Monkstown in Newtownabbey, Maidenhead and Harlow were called to a meeting and summarily dismissed without notice or redundancy pay.
The redundancy treatment of Nortel staff employed in Northern Ireland has been described by the SDLP’s Alasdair McDonnell as a betrayal of massive proportions.
And the role played by both the company management and the administrators, Ernst and Young, should be the focus of the toughest possible scrutiny according to the SDLP Deputy leader, Dr. Alasdair McDonnell.
Dr. McDonnell has already held private discussions with the Prime Minister Gordon Brown over the Nortel situation and has written to Pat McFadden, Minister for Employment Relations requesting an urgent meeting.
Speaking after the meeting with Ernest & Young Alasdair McDonnell said: “There are fundamental questions that need to be asked and answered about the actions of both Nortel and Ernest & Young in their treatment of these dismissed employees and that is why we called this meeting today.
“We want to know why, despite repeated public assurances given by Ernst and Young when Nortel went into administration in January that it would be “business as usual”, promises that contracts would be honoured have been broken.
“We want to know why Ernest & Young clearly failed to comply with the required minimum consultation period of 30 days with employees.
“And we want to know why Ernest & Young agreed to pay a £15.5m bonus package for Nortel Executives on 20th March and then took a decision 10 days later to make 228 employees redundant at no notice with no redundancy pay”.
Dr. McDonnell described the meeting as robust and worthwhile but said it was ‘the first round in a long battle’.
“We know that in a recession people will loose jobs but the way in which they lose them is crucial. There is no excuse for denying workers respect. There is no excuse for denying workers their employment and pension rights.
"Clearly there are legal and policy gaps in workers’ protection here. Serious questions have to be asked of a system of employment law and insolvency law which permits and encourages companies to abdicate all responsibility and protection towards their workers many of who like the workers in Nortel have given a life time of service” Dr. McDonnell added.
Notes to Editor
Those attending the meeting today were:
E&Y: Alan Bloom, Chris Hill and Richard Burt
Ps: Dr. Alasdair McDonnell MP, Theresa May MP, Dr. Phyllis Starkey MP, James Arbuthnot MP, John Redwood MP, Humfrey Mallins MP and Mark Prisk MP
ENDS
http://www.alasdairmcdonnell.com/news.php?id=253
(published: 3rd June 2009)
MCDONNELL CONTINUES FIGHT FOR NORTEL WORKERS’ RIGHTS
South Belfast MP Dr. Alasdair McDonnell today led a delegation of MPs in Westminster to meet with senior representatives of the Administrators Ernest & Young to discuss the treatment of Nortel workers in the Newtownabbey, Harlow and Maidenhead plants.
On Monday 30 March 2009, 228 employees at Nortel plants in Monkstown in Newtownabbey, Maidenhead and Harlow were called to a meeting and summarily dismissed without notice or redundancy pay.
The redundancy treatment of Nortel staff employed in Northern Ireland has been described by the SDLP’s Alasdair McDonnell as a betrayal of massive proportions.
And the role played by both the company management and the administrators, Ernst and Young, should be the focus of the toughest possible scrutiny according to the SDLP Deputy leader, Dr. Alasdair McDonnell.
Dr. McDonnell has already held private discussions with the Prime Minister Gordon Brown over the Nortel situation and has written to Pat McFadden, Minister for Employment Relations requesting an urgent meeting.
Speaking after the meeting with Ernest & Young Alasdair McDonnell said: “There are fundamental questions that need to be asked and answered about the actions of both Nortel and Ernest & Young in their treatment of these dismissed employees and that is why we called this meeting today.
“We want to know why, despite repeated public assurances given by Ernst and Young when Nortel went into administration in January that it would be “business as usual”, promises that contracts would be honoured have been broken.
“We want to know why Ernest & Young clearly failed to comply with the required minimum consultation period of 30 days with employees.
“And we want to know why Ernest & Young agreed to pay a £15.5m bonus package for Nortel Executives on 20th March and then took a decision 10 days later to make 228 employees redundant at no notice with no redundancy pay”.
Dr. McDonnell described the meeting as robust and worthwhile but said it was ‘the first round in a long battle’.
“We know that in a recession people will loose jobs but the way in which they lose them is crucial. There is no excuse for denying workers respect. There is no excuse for denying workers their employment and pension rights.
"Clearly there are legal and policy gaps in workers’ protection here. Serious questions have to be asked of a system of employment law and insolvency law which permits and encourages companies to abdicate all responsibility and protection towards their workers many of who like the workers in Nortel have given a life time of service” Dr. McDonnell added.
Notes to Editor
Those attending the meeting today were:
E&Y: Alan Bloom, Chris Hill and Richard Burt
Ps: Dr. Alasdair McDonnell MP, Theresa May MP, Dr. Phyllis Starkey MP, James Arbuthnot MP, John Redwood MP, Humfrey Mallins MP and Mark Prisk MP
ENDS
E&Y account
To: UK Employees
From: Ernst & Young
On Wednesday the 3rd June, Alan Bloom and Chris Hill, Joint Administrators of Nortel Networks UK Limited, met with a group of eight MPs in Westminster. The Administrators requested the meeting to inform the MPs about the Restructuring of the Company and the resulting impact for some employees.
The Administrators explained that their role is to undertake a comprehensive restructuring to address the challenges of the Company and to stem its losses. They informed the meeting that due to the high levels of overheads and declining revenues, causing significantly increased losses, on 30 March 2009 it was with regret that 228 employees were made redundant by the Company.
MPs were reminded of the relevant provisions of The Insolvency Act 1986 that relate to the claims of employees and the duties of the Administrators to creditors. In particular, UK legislation specifies that claims for redundancy and pay in lieu of notice rank as unsecured claims, alongside all other unsecured creditors. It was pointed out to the MPs that there is a legal duty on the Administrators to treat all unsecured claims, including those from suppliers and the Pension Fund, equally and without preference to one group over another. The MPs understood that the role of the Administrators is to achieve the best value for all creditors and to preserve as much of the business as is possible.
Under current UK employment legislation, The Redundancy Payments Service steps in to meet the statutory elements of such claims, with any contractual balance ranking as unsecured.
The Administrators went on to inform the MPs that no consultation took place with the impacted employees because it was not reasonably practicable to do so. UK Employment legislation recognises this and the Administrators referred the MPs to a letter dated 4 March 2009 from Pat McFadden, Minister for Employment Relations, to all UK Insolvency Practitioners. This letter confirms that it is recognised "that it will not always be practicable to consult in line with statutory obligations where a company has entered into an insolvency procedure".
The Administrators also dealt with the MPs questions on the reported "bonus package agreed for Executives on 20 March", which refers to a plan put in place in for senior executives in North America. The Joint Administrators acknowledged that this is a very difficult situation for the employees affected. They assured MPs they would forewarn employees of any further redundancies that are contemplated where possible and would handle the communication of individual decisions as sensitively as circumstances allow.
To: UK Employees
From: Ernst & Young
On Wednesday the 3rd June, Alan Bloom and Chris Hill, Joint Administrators of Nortel Networks UK Limited, met with a group of eight MPs in Westminster. The Administrators requested the meeting to inform the MPs about the Restructuring of the Company and the resulting impact for some employees.
The Administrators explained that their role is to undertake a comprehensive restructuring to address the challenges of the Company and to stem its losses. They informed the meeting that due to the high levels of overheads and declining revenues, causing significantly increased losses, on 30 March 2009 it was with regret that 228 employees were made redundant by the Company.
MPs were reminded of the relevant provisions of The Insolvency Act 1986 that relate to the claims of employees and the duties of the Administrators to creditors. In particular, UK legislation specifies that claims for redundancy and pay in lieu of notice rank as unsecured claims, alongside all other unsecured creditors. It was pointed out to the MPs that there is a legal duty on the Administrators to treat all unsecured claims, including those from suppliers and the Pension Fund, equally and without preference to one group over another. The MPs understood that the role of the Administrators is to achieve the best value for all creditors and to preserve as much of the business as is possible.
Under current UK employment legislation, The Redundancy Payments Service steps in to meet the statutory elements of such claims, with any contractual balance ranking as unsecured.
The Administrators went on to inform the MPs that no consultation took place with the impacted employees because it was not reasonably practicable to do so. UK Employment legislation recognises this and the Administrators referred the MPs to a letter dated 4 March 2009 from Pat McFadden, Minister for Employment Relations, to all UK Insolvency Practitioners. This letter confirms that it is recognised "that it will not always be practicable to consult in line with statutory obligations where a company has entered into an insolvency procedure".
The Administrators also dealt with the MPs questions on the reported "bonus package agreed for Executives on 20 March", which refers to a plan put in place in for senior executives in North America. The Joint Administrators acknowledged that this is a very difficult situation for the employees affected. They assured MPs they would forewarn employees of any further redundancies that are contemplated where possible and would handle the communication of individual decisions as sensitively as circumstances allow.
Posted on 12 Jun 09
UK Employee Forum Discussions
As a part of the discussions with the UK Employee Forum, the Joint Administrators have determined a process to implement a redundancy program in the UK for economic reasons.
This is as a result of a significant decline in revenues for Nortel Networks UK. A process has been put in place for managers to advise potential employees that they are at risk of redundancy and, should a decision be taken by the manager to confirm the redundancy, employment will end one week later.
The plan is for these at-risk discussions to take place between the 22nd and 30th June. For employees confirmed for this selection, employment will end either on 30th June or 7th July. It is envisaged that most notifications will be completed by 30th June.
The redundancy plan will impact approximately 150 employees. We will continue to review the situation and will keep you informed of its progress.
Joint Administrators
As a part of the discussions with the UK Employee Forum, the Joint Administrators have determined a process to implement a redundancy program in the UK for economic reasons.
This is as a result of a significant decline in revenues for Nortel Networks UK. A process has been put in place for managers to advise potential employees that they are at risk of redundancy and, should a decision be taken by the manager to confirm the redundancy, employment will end one week later.
The plan is for these at-risk discussions to take place between the 22nd and 30th June. For employees confirmed for this selection, employment will end either on 30th June or 7th July. It is envisaged that most notifications will be completed by 30th June.
The redundancy plan will impact approximately 150 employees. We will continue to review the situation and will keep you informed of its progress.
Joint Administrators
Nortel to lay off another 150 UK employees. See the message below, sent to UK Employees by Ernst & Young at 13:05 today:
Posted on 18 Jun 09
Posted on 19 Jun 09
Posted on 21 Jun 09
On 20 Jun 09 Nortel CEO Mike Zafirovski announced that Nortel had “Entered into a “stalking horse” sale agreement for our CDMA business and LTE Access assets with Nokia Siemens Networks for US$650 million”. And “are advancing in discussions with external parties to sell our other businesses”. It looks like it’s no longer a case of “if” but “When”.
So, Nortel! once a world leading company - Is the end Nigh????
Posted on 22 Jun 09
The next wave of redundancies have started in the UK. Many employees were told by phone first thing this morning. Looks like Nortel and Ernst & Young didn’t want to drag them into a meeting to be told collectively this time. We wonder why!!
We will post more info as we hear it.
For those of you who have been severed this week, please note the following:
1. There is a support group in place: See Useful Info Page. Also keep an check on the nnatrisk Group.
2. See the Useful Info page on this web site. This lists important things that you need to do.
3. A group of us will be at Maidenhead on 29 Jun 09 at 12.00 to meet up with you for an informal chat and to answer any questions. Venue TBA.
We will post more info as we hear it.
For those of you who have been severed this week, please note the following:
1. There is a support group in place: See Useful Info Page. Also keep an check on the nnatrisk Group.
2. See the Useful Info page on this web site. This lists important things that you need to do.
3. A group of us will be at Maidenhead on 29 Jun 09 at 12.00 to meet up with you for an informal chat and to answer any questions. Venue TBA.
Updates will be posted here, so keep on checking the site.
Most of the 150 employees were severed today. Apparently there are more over the next week who will lose their jobs.
All have their story to tell, and all will suffer hardship. However, one story has come to light which we must highlight:
Pam Henniker joined Nortel (then STC) in 1987 as a YTS girl at New Southgate and was moved over to the Harlow offices in 2003. She worked in the Bid Support Group publishing Nortel's tenders, so spent many nights, weekends putting Nortel before her family just to get the bids out on time.
Pam is currently on Maternity Leave and was made redundant today. She was advised by HR that they would not honour her Nortel Maternity Pay (which ends mid October), and was told that she will receive Statutory Maternity Pay from the government - not quite the same
She is not in the position to get another job at the moment and should be enjoying time with her four week old baby daughter. Nortel have taken that away from her.
Pam received her redundancy pack today with no mention of maternity leave, just a couple of paragraphs in the FAQ - not very personal.
All have their story to tell, and all will suffer hardship. However, one story has come to light which we must highlight:
Pam Henniker joined Nortel (then STC) in 1987 as a YTS girl at New Southgate and was moved over to the Harlow offices in 2003. She worked in the Bid Support Group publishing Nortel's tenders, so spent many nights, weekends putting Nortel before her family just to get the bids out on time.
Pam is currently on Maternity Leave and was made redundant today. She was advised by HR that they would not honour her Nortel Maternity Pay (which ends mid October), and was told that she will receive Statutory Maternity Pay from the government - not quite the same
She is not in the position to get another job at the moment and should be enjoying time with her four week old baby daughter. Nortel have taken that away from her.
Pam received her redundancy pack today with no mention of maternity leave, just a couple of paragraphs in the FAQ - not very personal.
Yet another example of how Nortel have rewarded great loyalty
Posted on 30 Jun 09