Antigua Government Proposes Bond Payment Plan for Former LIAT Workers
The government of Antigua and Barbuda has announced a bond payment plan for former LIAT (1974) Ltd. employees to address the outstanding severance payments. Prime Minister Gaston Browne disclosed that, following a recent evaluation by Mr. Seaforth, an outstanding amount of $16.3 million remains, representing 32% of the total severance owed to the former workers.
In a decision made by the Cabinet, the government will issue a bond covering the outstanding amount over a 10-year period at a 2% interest rate.
The bond payments are to be made annually in advance, with the first installment of $1.9 million scheduled for December.
This initial payment is intended to provide some immediate cash relief for the workers, although the Prime Minister emphasized that the government considers this a compassionate payment, as it claims no legal liability for the severance.
Prime Minister Browne reiterated the government’s stance that there is no obligation to make these payments, stating that the government has encouraged the Antigua and Barbuda Workers Union (ABWU) to challenge this position legally if they believe otherwise. Despite this, he affirmed that the government is moving forward to provide assistance directly to former LIAT employees, bypassing union negotiations.
In addition to the LIAT severance matter, Prime Minister Browne spoke about efforts to address back pay for public servants, revealing plans to raise approximately $35 million to fulfill these obligations.
He highlighted the administration’s commitment to keeping payments up-to-date, contrasting it with delays experienced under previous administrations.
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