Northwest Employees Settle Prepetition Grievances

Law360, New York (March 21, 2008, 12:00 AM EDT) -- A court approved a settlement between Northwest Airlines Inc. and the union representing its machinists and other employees on Thursday, granting the union a $3 million unsecured claim on Northwest's estate and $1 million in administrative expenses.

The settlement resolves nearly all employment grievances brought by the International Association of Machinists and Aerospace Workers, AFL-CIO against Northwest before the airline before filed for bankruptcy in 2005. The union filed a claim of more than $10 million in August 2006 for prepetition employment grievances.

The settlement agreement,...
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