The U.S. Labor Department is investigating allegations that Northwest Airlines has violated Employee Retirement Income Security Act, ERISA, by pension benefit cuts.
ERISA law protects stock holders and pension plan participants from stock fraud and threatened pension benefits. Executives have fiduciary responsibility to keep their shareholder's best interests in mind and disclose all corporate status details which may affect company stocks and benefits.
This investigation comes after questionable pension plan losses totaling $5.8 billion. To the dismay of thousands of employees, Northwest Airlines made $1 billion in wage and benefit cuts in 2005 but has been consistently making related cuts since 2002.
Northwest Airlines registered for bankruptcy and avoided a $65 million dollar pension fund payment. Northwest Airlines, along with the other major airlines have all experienced millions of losses since the travel industry decline after the 9-11-01 terrorist attacks. Along with Northwest Airlines, US Airways is another major airline which filed bankruptcy in 2005.
ERISA law protects stock holders and pension plan participants from stock fraud and threatened pension benefits. Executives have fiduciary responsibility to keep their shareholder's best interests in mind and disclose all corporate status details which may affect company stocks and benefits.
This investigation comes after questionable pension plan losses totaling $5.8 billion. To the dismay of thousands of employees, Northwest Airlines made $1 billion in wage and benefit cuts in 2005 but has been consistently making related cuts since 2002.
Northwest Airlines registered for bankruptcy and avoided a $65 million dollar pension fund payment. Northwest Airlines, along with the other major airlines have all experienced millions of losses since the travel industry decline after the 9-11-01 terrorist attacks. Along with Northwest Airlines, US Airways is another major airline which filed bankruptcy in 2005.
