By Shermain Bique-Charles
Just days before LIAT (1974) Ltd ceased all commercial flying operations, the Antigua and Barbuda Workers Union was actively exploring various options for severance payments to former employees.
Last Thursday, Cleaveland Seaforth, the Administrator of LIAT (1974) Limited, sent a letter to the company’s staff stating that effective February 4, 2024, all employees will be made redundant without payment. This decision is expected to affect more than 90 employees who will lose their jobs.
Interestingly, Seaforth promised that the company’s obligations would be met, although it is unclear what these obligations entail.
The Administrator said in his letter that LIAT (1974) Limited recognises its obligation to employees and will provide applicable entitlements to them within 45 days of his letter, after the respective computations have been completed.
The Administrator also assured that the best outcome with respect to the indebtedness to all employees would be secured in accordance with the company’s legal and contractual requirements.
However, Senator David Massiah, the General Secretary of the Antigua and Barbuda Workers Union (ABWU), has criticised Seaforth’s decision-making process.
Senator Massiah said that the ABWU was not consulted on any decision related to the former and current staff despite sending several letters to Seaforth seeking clarity on the situation.
“We have been hearing information in the public [domain]weeks before, and even the utterances coming from the budget, the indications were clear that we would have reached that point. But what is shocking is the part in this letter where workers were told that their entitlements cannot be paid now…that is very disheartening to learn,” he said
Furthermore, Massiah said the lack of transparency and communication between LIAT’s management and the Union has raised questions about the fairness of the redundancy process,
“The ABWU, nor any other Union within the LIAT system, have not received any communication from the Administrator or anyone for the last two years, even though I have written letters and made calls for dialogue…So that when this day arrived, we would have been in a better position…”, he said
The ABWU has written to Seaforth again, seeking answers on the way forward.
The matter of severance pay for employees at LIAT has been a subject of ongoing discussions and debate since the airline experienced a significant downturn in 2020, due to the Covid-19 pandemic.
The government has stated that it cannot bear the full cost of severance payments for affected workers, citing concerns about cash flow and its own limited ownership stake in LIAT (32%).
This has left many workers uncertain about their financial future, as they face the possibility of never receiving the compensation they are entitled to.
Despite these challenges, the ABWU has been actively pursuing legal avenues to ensure that workers receive the severance pay they deserve.
Senator Massiah, a key figure in the ABWU, has confirmed that the Union’s legal team is currently exploring various strategies to achieve this goal, and remains committed to advocating for the rights and interests of LIAT workers during this challenging time.
“The process has been labeled that the ABWU has been playing politics with the LIAT issue. The ABWU has been asked to be the lead group for LIAT workers…we continue to do that. At the end of the day, we are sitting with our legal personnel to examine how we will proceed from here,” he said
Former LIAT workers were offered a compassionate payment of 50% by the government, which was later reduced to 35%.
Despite this, only a small percentage of these workers have reportedly taken advantage of the one-time offer, with the majority declining it.
The government of Antigua and Barbuda has pledged to spend around EC$30 million to ensure that LIAT (2020) Ltd has all necessary aircraft, maintenance, and operational arrangements in place for safe, reliable, and efficient service delivery to the region’s people.