Canada-based company Nortel Networks Corporation is now facing a class action lawsuit triggered by the changes the company has implemented to its pension plan in 2006.
Nortel employees from across Canada filed the lawsuit in Ontario Superior Court on Tuesday. The suit seeks damages as a result of what the plaintiffs consider as Nortel’s "failure to provide to their employees reasonable notice of the changes to the pension plan."
The telecommunications equipment company has been accused by its employees of failure to take into account future salary increases beyond January 1 it calculated the value of the pension benefits for each employees.
The case is still on the process of getting a class-action status. Thus, the number of employees involved in the case and the procedure for handling the case by individual employees are to be determined in the certification process.
The court still has to certify if the case will qualify as a class action suit.
Meanwhile, shares in Nortel have experienced a decline of five cents in the recent figures on the TSX.