February 8, 2000
(Environment and Labour)

Langdon pleased with outcome of labour ministers meeting

Oliver Langdon, Minister of Environment and Labour, stated today that he was very pleased with the outcome of the recent meeting of labour ministers held in Winnipeg, February 3- 4. Minister Langdon was particularly pleased with the reaction of his colleagues to his suggestion that employees affected by business bankruptcies be given greater priority during the bankruptcy process.

Minister Langdon stated that under current federal legislation, employees claims for wages fall behind those of banks and other secured creditors, thus, when the assets of the bankrupt company are distributed, there is often nothing remaining to address the issue of wages and benefits owed to affected employees.

"Employees often find themselves out of work and without pay for their last period worked and I recognize the tremendous hardship this must cause workers and their families," said Minister Langdon. "I believe that in the unfortunate case of business bankruptcies, employees should be given greater priority in accessing any funds that may become available and my colleagues agreed that this matter should be explored further."

"I am encouraged by the response of my colleagues, but there is still much work to be done," said Minister Langdon. "Ministers have agreed to begin to identify all possible options in addressing this issue. The important thing is that there is a recognition of the hardships imposed on workers affected by business bankruptcies."

Over the coming months, federal, provincial and territorial officials will examine the issue in more detail and report back to the ministers.

Media contact: Sean Kelly, Communications, (709) 729-2575.

2000 02 08                                         3:00 p.m.