Northwest Pilots Approve Pension Freeze

Law360, New York (January 13, 2006, 12:00 AM EST) -- In a calculated move, pilots for embattled Northwest Airlines Corp. agreed to freeze their pensions this week rather than wait for a federal bailout that could ultimately result in lower payouts.

As Northwest prepares to switch to a retirement plan built on employee contributions, an overwhelming majority of pilots--over 80%--opted to approve the freezing measure, considered to be the lesser of two evils.

The latest development comes only a few days after a federal bankruptcy judge granted number-four U.S. carrier Northwest Airlines Corp. six more months...
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