Fix the BIA Now - Change CCAA and BIA to Protect the People


Signatures:
  3,892 (Goal: 5,000)

Petitioning: It's time that CCAA and BIA is modernized to protect the rights of ALL employees

Petitioner: ChangeCCAA started on May 19, 2009

In today's economy, more and more companies are seeking to leverage the Companies Creditors Arrangement Act (CCAA), an archaic 1933 Federal Canadian Act that protects companies from their creditors while they restructure their business in an effort to avoid bankruptcy. Under the CCAA, it is up to a company to determine whether it will pay or not pay severance or other employee benefits, such as pension fund or long term disability plan top ups. Most companies choose not to pay. The severed employees, pensioners and disabled employees are treated as unsecured creditors. Most people are unaware, that the Federal bankruptcy laws overrule all Provincial legislation that is in place to protect these benefits. What was believed to be a safe landing after layoff and into retirement can become a nightmare in these situations. Under the Bankruptcy and Insolvency Act (BIA), where companies liquidate, employees fare no better - unpaid severance, pension deficit and long term disability payment claims all sink to unsecured status and usually get paid at fractions on the dollar.

It's time that the CCAA and BIA were modernized to protect the rights of ALL Canadian employees and to ensure that employees laid off by a company or receiving pension and LTD benefits during bankruptcy proceedings get preferred status over the unsecured creditors. Why? Employees are unlike any other creditor: they have been largely responsible for creating value for all stakeholders; and, unlike debt holders, banks, and suppliers, they are not diversified businesses taking risks and managing a tax write-off for financial loss.

To further protect severed employees, pensioners and the disabled in these situations, we also need the Federal Government to set conditions under the Investment Canada Act to ensure proceeds of sales to foreigners is allocated to the Canadian employment related claims and money is not being funnelled out of the country to avoid these obligations.

For information on how the CCAA/BIA impacts retirees and employees, view the links below.

Nortel - tinyurl.com/NortelNetworksnews
Nortel - tinyurl.com/Nortelfixbia
Air Canada - tinyurl.com/AirCanadanews
Chrysler - tinyurl.com/Chryslernews
GM - tinyurl.com/TorstarGMnews
Abitibi - tinyurl.com/abitibiseveranceisue

Sign this petition to help change the CCAA and BIA to ensure a preferred priority ranking to pensioner, disabled employee and severance claims so that they will be paid out before the unsecured creditors.

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