Union Sues Northwest Over Unapproved Bonuses

Law360, New York (February 26, 2007, 12:00 AM EST) -- The Northwest Airlines Inc. pilots union sued the bankrupt airline on Friday for implementing a number of bonus plans without the union’s consent.

In its complaint, which was filed before the U.S. Bankruptcy Court in Manhattan, the Air Line Pilots Association, a unit of the AFL-CIO, said Northwest had violated the terms of its collective bargaining agreement.

“By implementing the [plans], Northwest, in effect, unilaterally determined how any enhanced compensation should be paid to the Northwest pilots,” the union said.

Under one of the disputed programs,...
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