MP tables bill to put pensions first

John Rafferty, Member of Parliament representing the riding of Thunder Bay - Rainy River in northwestern Ontario, tabled a bill that aims to amend the Bankruptcy and Insolvency Act to move pensioners ahead of the banks as the first to get their money from a bankrupt employer.

“This bill should end the uncertainty for workers at AbitibiBowater and other companies that are facing financial difficulties. It will secure their plans if their employer enters bankruptcy or restructuring, and will ensure that they receive their retirement income in full,” Rafferty said. “This bill is long overdue, and while it comes too late for Nortel workers it could still secure thousands of pensions at AbitibiBowater should the tentative deal between the union and the employer fall through, or if the company experiences difficulties again in the future.”

The bill was tabled on the same day that the pensioners of Nortel Networks Corp. were told their benefits would only be protected until the end of this year.

"It's a very sad day and it puts the spotlight on the importance of this particular bill," Rafferty said. "If this becomes law, there won't be one Canadian worker who loses because their company goes bankrupt."

“These pensions are not fringe benefits. These are deferred wages that workers have put aside so that they’ll have something put aside for their retirement,” said NDP leader Jack Layton, "When companies go bankrupt and restructure, these companies are taking these unpaid wages and using them to pay off other creditors first. You could practically call it theft.”

Rafferty's bill is numbered as "Bill C-501",

Read more:

NDP MP introduces pension security bill (Kenora Miner & News)

Rafferty Launches Pension Security Private Member's Bill (netnewsledger)

NDP tables bill to amend Bankruptcy Act (Toronto Sun)