Nortel fights auto workers union over severance

When it rains, it pours. The Canadian Auto Workers (CAW) union is fighting Nortel in an Ontario court over severance and other payments to former employees.  

The CAW asserts that Nortel shouldn't be allowed to ignore parts of its contract with the union and is asking a judge to order Nortel to make severance and other post-employment payments. While a union lawyer says that the courts have typically treated former employees like other creditors under Canadian law, CAW should be treated like any other supplier who continues to provide services to a company - which means paying up contractual obligations for severance and retirement assistance to CWA workers.

While the CAW only has 45 members still working at Nortel, it claims to represent 600 former members who have retired from the company. In addition, the union's motion was supported by lawyers working on behalf of thousands of other former Nortel employees.

For more:
- Google News carries the Canadian Press story. Post.

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