Manitoba Telecom Services Inc. announces Supreme Court of Canada will hear appeal regarding pension lawsuit

Stock Symbol:  MBT

WINNIPEG, Oct. 25, 2012 /CNW/ - Manitoba Telecom Services Inc. (TSX: MBT) (the "Company" or "MTS Allstream") today announced that the Supreme Court of Canada has decided to hear arguments over a lawsuit regarding one of MTS's pension plans in Manitoba.

This litigation, commenced by a group of plaintiffs comprised of unions and pensioners, was in respect of events that occurred at the time of the Company's privatization in 1997.  In February 2012, a panel of three judges on the Manitoba Court of Appeal unanimously agreed with the Company and dismissed all of the plaintiff's claims. Manitoba's highest court of appeal set aside the prior decision of the trial judge and confirmed that the Company had complied with its obligations and that no changes to the future funding requirements or any other aspects of the MTS Pension Plan were required as a result of this past litigation.

"It is unfortunate that this historical matter continues to work its way through the court system. We do not believe that the pending hearing will change the unanimous decision of the Manitoba Court of Appeal, which correctly applied the Supreme Court's recent rulings clarifying the state of pension law in Canada," said Paul Beauregard, MTS Allstream's Chief Legal Officer and Corporate Secretary.  "The Supreme Court understands the value both employers and employees place on a stable and predictable framework for pension law in Canada, and our external counsel are confident that the Supreme Court will confirm that the three senior judges on the Manitoba Court of Appeal correctly applied all aspects of current Canadian pension law."

A decision from the Supreme Court is expected within the next 12 to 18 months.  There will be no changes to the Company's expected future funding requirements or any other aspects of the MTS Pension Plan until the appeal process is completed.

Over the years, the Company has remained committed to funding this pension plan, and has contributed approximately $604 million.  Employee contributions over the same period totaled $157 million.  

Manitoba Telecom Services Inc. (MTS Allstream)
MTS Allstream is one of Canada's leading national communication solutions companies, providing innovative communications for the way Canadians live and work today. The company has more than 100 years of experience, with 5,500 employees across Canada. MTS Allstream's business is dynamic and consists of two operating divisions.  In Manitoba, MTS is the leading full-service telecommunications provider for residential and business customers. MTS's suite of services include the latest in wireless technology, broadband services, IPTV, voice services, home security, and an extensive range of business solutions. Across Canada, Allstream is a leader in IP communications and is the only national provider that focuses exclusively on the business telecommunications market. MTS Allstream has nearly two million customer connections spanning business customers across Canada and residential consumers throughout the province of Manitoba. The company's extensive national fibre optic network spans more than 30,000 kilometres. MTS Allstream has spent 11 consecutive years on the Jantzi Social Index for leadership in social responsibility and is the recipient of the 2011 Governance Gavel Award from the Canadian Coalition of Good Governance, recognizing clear and effective public disclosure and leading governance practices. MTS Allstream's common shares are listed on the TSX (trading symbol: MBT). Customers, stakeholders and investors who want to learn more about MTS Allstream are encouraged to visit:  For more information about MTS's products and services, please visit For more information about Allstream's products and services, please visit

Forward-looking Statements Disclaimer
This news release includes forward-looking statements and information (collectively, the "statements") about the Company's corporate direction, business opportunities, operations, financial objectives and future financial results and performance that are subject to risks, uncertainties and assumptions.  As a consequence, actual results in the future may differ materially from any conclusion, forecast or projection in such forward-looking statements. Therefore, forward-looking statements should be considered carefully and undue reliance should not be placed on them. Examples of statements that constitute forward-looking information may be identified by words such as "believe", "expect", "project", "should", "anticipate", "could", "target", "forecast", "intend", "plan", "outlook", "see", "set", "pending", and other similar terms.

Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters identified in the "Material assumptions" section below, the "Risks and uncertainties" section, elsewhere in the Company's 2011 Annual MD&A and 2011 Annual Information Form, all of which are available on SEDAR at

Please note that forward-looking statements reflect Management's expectations as at the date hereof.  The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: MTS Allstream

For further information:

Selena Hinds
Corporate Communications

Paul Peters
Investor Relations

Organization Profile

MTS Allstream

More on this organization

Manitoba Telecom Services Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890