PM Ready to Settle LIAT Severance But…

Prime Minister Gaston Browne has stated that he is willing to address the issue of outstanding payments to former LIAT 1974 Ltd employees, but he is not open to discussing the demand for 100% severance pay from the union.

While the government is prepared to compensate the workers, the prime minister has made it clear that he will not pay the full amount as requested by the union.

He stated that the union should engage with the government on Monday morning regarding the 32% compassionate payment offered, which will not remain indefinitely.

He emphasized that the matter is entirely in the hands of the ABWU, and that the staff of LIAT (1974) Ltd. who wish to resolve the issue should pressure the union to accept the offer.

The prime minister explained that the union has a responsibility to sit down with the government and come to an amicable resolution, and that the previous offer to settle the matter with a combination of cash, bonds, and lands should be discussed at the negotiations table.

The offer of 32% represents the government’s share holding in the defunct LIAT (1974) Ltd.

Meanwhile PM Gaston Browne has announced that LIAT 2020, the airline entity designed to provide dependable air services between Caribbean countries, is one step closer to becoming a reality.

He revealed that one of the significant obstacles has been overcome: shareholder governments of LIAT (1974) Ltd. have given their approval in writing for the sale of the three aircraft that had been leased to the now-defunct airline.

The Caribbean Development Bank, which financed LIAT (1974) Ltd.’s acquisition of the three aircraft, has also indicated its approval of the purchase.

The aircraft will be sold for US$12.1 million, with the first payment of US$4.1 million already in an escrow account, and financing for the remainder secured.

The new airline will have two initial shareholders, with both committed to spending significant amounts to get the airline up and flying.

Air Peace, a Nigerian airline, will contribute US$60 million and become the largest shareholder, operating the new airline.

PM Browne explained that the government and Air Peace would spend EC$200 million to improve air connectivity and strengthen the integration movement.

He refuted suggestions about Air Peace’s abilities and pointed out that it had just secured a route to fly into JFK Airport in New York, confirming that it is Africa’s largest airline and continues to expand.

The prime minister reiterated his stance on the decision to close down LIAT (1974) Ltd. during the COVID-19 pandemic and his government’s refusal to support that decision, stating that they saw an opportunity to “right-size LIAT” and took it.