Disabled Nortel employees denied appeal hearing

An attempt by a group of disabled Nortel employees has failed to win a hearing at the Ontario Court of Appeal of their objections to an agreement the company reached for pensioners and employees on long-term disability. The court denied the group leave to appeal the settlement reached in March.

The agreement sets aside $57 million to pay benefits to the company’s former and disabled employees until the end of the year in exchange for an agreement not to sue those involved in the management and funding of Nortel’s pension and health and welfare funds.

Nortel filed for court protection from creditors in the United States, Canada and other jurisdictions in January 2009, and has since sold most of its major operations to former rivals.

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