NORTHWEST AIRLINES being investigated for unlawful pension shenanigans

[Bluebear]

Anti-labor Northwest just extracted draconian wage cuts from its front-line employees...now this.

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NEW YORK, March 15 (Reuters) - Northwest Airlines is being investigated by the U.S. Department of Labor over whether it depleted an employee pension fund for several years, then avoided payment by filing for bankruptcy protection, the New York Times reported on Wednesday.

Citing Department of Labor officials, the Times said the government has issued a subpoena for Northwest pension information dating back to 2002.

The reported also cited a Northwest spokesman saying the company had provided some of the documents but was seeking a protective court order to keep others confidential. Investigators appear to be probing the steps that led to a $5.8 billion shortfall in Northwest's pension fund to see if it violated any laws.

The aim would be to prevent other companies in distress from dipping into pension funds and then using bankruptcy proceedings as a way to transfer the obligations to the government, the report said.

Northwest officials could not immediately be reached for comment.

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060315:MTFH90606_2006-03-15_08-37-14_N15243577&symbol=NWACQ.PK&rpc=44

[katinmn]

1. Whoa! What a scam.

That's out and out theft from employees' pension funds.

Call me cynical, but I bet NWA gets away with it. It is a white collar crime after all. Not like someone stuck their hand in a till and stole $50.

[Bluebear]

2. It is very Republicanesque, no?

Whatever is good for bidness, you know. The robbed employees can always "go back to school and get retrained" for another career...at age 50, 60...70?