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the dispute dates back to last May, when Nortel announced it was closing its local facility while it transferred work abroad. Then, in the fall, the company asked the workers to remain during the transition period in exchange for 60 days' notice and then a severance payment. But when Nortel announced it was filing for bank- ruptcy protection under the Companies' Creditors Arrangement Act in January, those arrangements came to a halt, says Robertson. "They're all stiffed," he says. "It's appall- ing to me because it's hard for me to believe that the company didn't know it was in difficulty in December." Adding to the frustration is the fact some of the workers remain on "death row" with the company because they don't want to lose their chance to get severance should they quit, says Robertson. Meanwhile, some of them turned down other job offers because of the company's promises. "The people who helped move their jobs offshore got suckered," he argues. As a result, he is representing more than 100 Calgary workers in their bid for compen- sation. Levitt, too, has taken on the cases of employees in similar circumstances in Ottawa. Also going to battle with Nortel are employees who claim they lost out on their 2008 bonuses as well as a prom- ised transitional retirement allowance. In April, Levitt was in court in a bid to get a representation order for those workers during the CCAA proceedings. Still, Robertson acknowledges the circumstances are difficult given the uncertainty plaguing the company. "Now they're unsecured creditors claim- ing in the CCAA process in Toronto," he says of the employees. Across southern Ontario, too, workers at troubled auto- parts makers have found themselves in similar situations in which their companies closed or downsized with- out paying severance or, in some cases, their full pay. As a result, the disputes have degenerated into union blockades, prompting companies to take the mat- ters to court as they seek injunctions against the workers. In the end, lawyers expect compa- nies' moves to cut costs will make labour and employment one of the few growth areas in the legal field as the recession drags on. While some employees will fight back with wrongful and construc- tive dismissal claims, Arbour predicts employers will be equally proactive in defending themselves. "I assume that companies will look at the mitigation- of-loss efforts by the employee," she says, adding that many employees are at least recognizing the upside of the sal- ary cuts and freezes as well as the four- day workweeks. "In some ways there is a silver lining. It's not the best silver lining but it at least means that there is a posi- tion there, and someone is working." Palmer, too, says there can be posi- tives for employers even if a few work- ers go to court. "Maybe you've just found the 10 people you didn't really want out of 100 people. Maybe you've reduced your head count by 10 per cent and you've actually picked the right people." IH Don't miss the following conferences presented by ABS 2009 May 31 – June 2 | Banff CORPORATE AIRCRAFT TRANSACTIONS June 1 – 2 | New York CARBON MANAGEMENT June 3 | Calgary EXECUTIVE COMPENSATION June 9 | Toronto COMMERCIAL INSURANCE AND REINSURANCE June 15 – 16 | Toronto CORPORATE IMMIGRATION June 17 – 18 | Toronto ADMINISTRATIVE PROFESSIONALS FORUM June 18 – 19 | Ottawa August 13 – 14 | Toronto Media Partner ENROLL TODAY! 1 888 777-1707 | www.insightinfo.com/InHouseCounsel 26 • JUNE 2009 Untitled-3 1 INHOUSE 5/5/09 10:32:47 AM