Another look back at the events that ended my career at Nortel and its impact on me. More importantly, on many other folks (as I got out relatively safely, only losing a lot of stock and options). I wrote this on the day that Nortel declared bankruptcy. Folks at the time said it was only temporary, it wasn’t. These are my raw feelings on that day (January 15, 2009). It is better to be lucky in life.
With Nortel’s bankruptcy protection announcement yesterday, there is a sickening scenario for some very unlucky folks (many I know personally). Today’s title comes from one of my favourite expressions, “Sometimes it’s better to be lucky than talented,”. That is how I feel right now.
I am OK
As background, let me outline what has happened to me regarding my layoff.
Due to restructuring, I was notified of my redundancy on July 30th of 2008. I would still be on the Nortel payroll for the next TWO months. I would have access to my office and such and could look for jobs inside of Nortel. On July 30th, I was also given the specifics of my severance package. The severance was quite generous, pretty much a full year of pay.
As part of the severance procedure, I had to take my entire severance payment (lump sum) on September 30th, or I could take some then and delay some until January 2nd 2009. The lump sum payment was split and I received a part in September and a portion in January. This was done so I didn’t have a huge tax bill for 2008.
All this means Nortel owes me no more money. There is a small caveat to this, which is not worth mentioning. Therefore Nortel filing for bankruptcy protection has no direct effect on me financially. Hence to comment about better to be lucky.
Some are Not So Lucky
Those notified of their redundancy after November 16th, 2008, are now in limbo (or possibly hell, I am not sure). I have heard from one former associate that his severance package is now “gone” because he has not received it yet.
I do not know if this is hearsay, rumour or fact, but it is possible. The severance package becomes part of the liabilities Nortel owes. It may well be that these severance packages are now “unsecured debt” and must be dealt with as part of bankruptcy protection.
If these folks do not get their packages, this would be diabolical (in my opinion), and I hope this is not the case, but I suspect it is a real possibility. (it was, and many folks got little or no money they were owed).
As for pensioners (retirees from Nortel), I do not know where this leaves the pension plan, given it is underfunded and the repayment of the shortfall must be dealt with as part of the bankruptcy protection plan.
In terms of investors, anybody who still holds stock in Nortel is out of luck, the paper is worthless (at least that is my guess, I am willing to hear arguments to the contrary), and the Bondholders are now part of the bankruptcy protection plan as well.
I didn’t know that since Nortel was self-insuring, all folks on Long Term Disability were treated as creditors and lost their benefits.
Bad Day Financially and Other Ways too
A sad day for me, seeing a company I worked for and enjoyed most every day there take another step toward oblivion. Many of my co-workers and former compatriots are in a “bad way” thanks to some very questionable decisions by the Senior Management Team.
I remember I was at a GIS where the present CEO, Mike Zafirofski , was attempting to put a friendly smile on the capping of the pension scheme. A former co-worker went up to the mic, criticized the CEO, and asked the pointed question at the end, “… I don’t know how you sleep at night!” I wonder how Mike Zafirofski is sleeping these days?
Nortel related articles
- On Being Laid Off (a 10 year retrospective) what had I learned the 10 years after getting laid off.
- A Year Ago, written a year after that day I was laid off luckily I was waiting to start a new job
- Sometimes it’s better to be lucky a retrospective about how lucky I was to get laid off when I did. Read on to find out why.
- Pensions and Severance an important topic I took from my layoff from Nortel.
- Twenty Years in One Line is what my severance letter did. My 20 years are summed up in a sentence.
- Financial Issues With Severance what do you do with your severance if you have options? If you get severance as well.
- On Being Laid Off my explanation of being laid off from Nortel, a day or two afterwards.
- Nortel Still Paying Out? Really, well not that much.