Ex-LIAT workers to get severance by next month

Former Barbadian workers at regional airline LIAT will receive their outstanding severance payments early next month.
Director of Finance and Economic Affairs The Most Honourable Ian Carrington made the disclosure to Barbados TODAY on Tuesday, saying the Government’s promise to pay full severance was close to being fulfilled.
“It’s just to arrange a meeting with the employees. The spreadsheet with all the payments the Prime Minister has outlined has already been completed. So it’s just a matter of having the meeting with them and checking to see that their records are correct and making the payments as soon as possible,” he said.
Carrington said he would be reaching out to the Ministry of Tourism and International Transport to arrange the meeting with the 89 ex-employees of the regional carrier by the end of this month.
“I would like to have this situation behind us once and for all…. It would be safer to say they would be paid early next month,” he said.
In a statement issued later on Tuesday afternoon, Carrington reiterated that while the Government had no legal obligation to make the severance payments, the $10 million payout announced by Prime Minister Mia Mottley in her Budget last month was an ex gratia offer.
He pointed out that, to date, some workers had received two monetary gifts and a loan from the Government. In 2021, they were offered $2 000 as a one-off cash gift and a $2 000 per month advance for one year which is to be repaid at a future date from any severance payment settlement.
In addition, Carrington said, some workers who contributed to the National Insurance Scheme received their entitlements.
The severance the Mottley administration is offering to each former employee will be no greater than the sum due to them from LIAT (1974) Ltd as a consequence of the termination of their employment following the administration of the airline in 2020, Carrington explained.
“In calculating the Government’s ex gratia offer, the loan and other payments already received (not including gifts) will be deducted from the offer. A maximum cash offer of $75 000 will be made. Where, after deductions, the balance is greater than $75 000, a portion will be paid in Series J Bonds,” he added, reiterating the terms that the Prime Minister had outlined in her announcement.
Mottley had said the cash payments would cost the Government just over $4 million while the price tag for the bonds was a little under $6 million.
(EJ)