One of the unions representing terminated LIAT workers is accusing the Barbados Government of failing to act early to settle the issue of severance pay for employees even as a new company is about to replace the troubled Antigua-headquartered airline.
Chairman of the Leeward Islands Airline Pilots Association (LIALPA) Patterson Thompson has also accused Minister of Tourism and International Transport Senator Lisa Cummins of playing politics with the severance matter.
Describing as a horror and a nightmare, the former workers’ experience with LIAT in seeking outstanding entitlements owed since they were sent home two years ago, Thompson said the severance issue still has not been adequately addressed by any of the shareholder governments — Barbados, Antigua and Barbuda, St Vincent and the Grenadines and Dominica.
However, he reserved his harshest criticism for the Mia Mottley-led administration.
“I maintain strongly that when the decision was made to shut down LIAT, it was the responsibility of the Barbados Government, being the majority shareholder, to have a plan in place for the workers,” Thompson told Barbados TODAY on Wednesday.
“Also, for the Honourable Minister [Lisa Cummins] to come the day before general elections [in Barbados] to somehow make my severance issue a political issue, does not go down with me or the other workers very well, because if there was a plan it should have been articulated way in advance and then the pressure would have been on the prime minister of Antigua and Barbuda to justify why he would delay in paying out severance or whatever it was to the workers,” declared the pilots’ spokesman, who has also been agitating on behalf of all former LIAT staff.
“So, don’t come the day before an election to say ‘well, you blaming Antigua and this is why you have not been able to solve our issue’,” he contended.
Stating that it was well known that LIAT 1974 Limited was an insolvent company, Thompson read an extract from an affidavit now before the law courts in St John’s, which he said was drawn from three different audit reports.
It pointed to “the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern and, therefore, it is unable to realise its assets and discharge its liabilities in the normal course of business”.
“The directors believe that the requisite support from the shareholders and lenders would be forthcoming. Therefore, they believe that the going concern basis of preparation is appropriate. The major shareholders have provided written confirmation of their willingness and ability to provide continued support for the company as, and when necessary.”
“The unique ability of governments to create, modify and implement […] any policy which may create or enhance revenue-generation mechanisms, puts the shareholders of LIAT in a preferential position of access to funds to provide support,” Thompson quoted from the affidavit.
In other words, the LIALPA chair said, the shareholder governments knew the carrier was insolvent but still kept it afloat.
“All I am saying is if you as the government had the ability to float an insolvent company, you as the government can come together and say ‘let us do something for the workers, we can put our political differences aside’. Clearly, there is aggravation between Barbados, St Vincent, and Antigua when it comes to LIAT. That is not my concern, that is a matter for the governments,” Thompson declared.
He said the unions understood the economic challenges faced by the governments, and while not asking them to pay all EC$120 million (US$44.4 million) in severance upfront, they were requesting a negotiated settlement that could be undertaken over a three-year period.
“All I am asking you is to get together and come up with a plan; that’s all I am asking,” the union head said.
Thompson disclosed that he wrote two letters to the Barbados Government and was still awaiting word on when a meeting can be held to agree on a plan for the suffering workers.
The regional airline, which is currently under court-approved administration, has started advertising for new staff to operate what will be known as LIAT (2020) Ltd.
Vacancies at the new airline which Antigua’s Minister of State in the Ministry of Finance Lennox Weston recently said should start operations by June, include positions in executive management, ground operations, flight operations, maintenance and engineering, and information technology.
Thompson told Barbados TODAY that although he is still owed severance, he has no choice but to reapply for a position at the new airline because he has a mortgage to pay and a family to support.
He said other former workers would be encouraged to do likewise for similar reasons.
When Barbados TODAY reached out to Minister Cummins on Wednesday, she said she could not speak on actions taken by Antigua or any other sovereign government in their own right.
“Barbados will speak to its own position on any matter related to LIAT and its former employees at such time as we have taken a policy decision,” she declared. emmanueljoseph@barbadostoday.bb
