Employee Rewards and Benefits News
Nortel asks US and Canadian courts to accept employee retention aims
Nortel Networks is asking both American and Canadian courts to accept a $92 million (£58 million) employee retention plan in order to keep key members of staff from quitting jobs despite business units being sold off.
The Canadian communications explained late last week that buyers from a number of business divisions have made it very apparently that they need Nortel to retain certain workers through employee benefits and bonuses to make sure any transitions are smooth.
Nortel chairman David Richardson said that employees being offered participation have been instrumental in ongoing work and are extremely critical to fulfilling the remaining tasks.
He continued: "The loss of these key employees at this time would create significant delays in our activities and place the achievement of our objectives at risk. In short, we believe the plan is in the best interests of our creditors and other stakeholders, and of the process itself."
Nortel is currently under liquidation, filing for bankruptcy protection in January 2009.
Posted by Matt Gardner
