2nd Circ. Affirms Severance For IAM In Varig Suit

Law360, New York (November 14, 2008, 12:00 AM EST) -- An appeals court has upheld an order granting more than $267,000 in severance pay and benefits to U.S.-based union workers who were permanently laid off in 2006 from then-bankrupt Brazilian airline Varig S.A.

In a ruling issued Wednesday, a three-judge panel of the U.S. Court of Appeals for the Second Circuit agreed with a lower court decision finding that the airline had failed to show that the dispute over the collective bargaining agreement at issue in the case should be arbitrated.

Varig had tried to argue...
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