LIAT Staff In Antigua Given Friday Deadline

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LIAT

Antigua-based workers with the cash-strapped regional airline, LIAT, have until Friday to agree to proposals by the government as it moves to prevent the liquidation of the company by its major shareholder governments.

Prime Minister Gaston Browne, who is opposed to liquidating the airline, Tuesday held talks with representatives of the Antigua and Barbuda Workers Union (ABWU), but the union’s general secretary, David Massiah, would not divulge the details of the deliberations.

Browne is seeking support for his idea for the formation of a new company, LIAT 2020, should the governments of Barbados, Dominica and St. Vincent and the Grenada go ahead with their plans to liquidate LIAT (1974) Limited that owes millions of dollars to its creditors.

LIAT employs hundreds of workers here and Massiah said the union also met with the workers behind closed doors on Tuesday.

He told the state-owned ABS radio and television that he would not wish to divulge the details of the discussions since the airline’s operations are diverse and involve various departments across the region.

He said the ABWU needs to involve all stakeholders in their consultation process before any firm decision can be made on the options outlined by Prime Minister Browne during the meeting.

But Prime Minister Browne, while he has not publicly indicated what had been discussed on Tuesday, posted on his Facebook page, a report quoting his Chief of Staff, Max Hurst, indicating that LIAT workers have been asked to agree to a 50 per cent cut in severance payments.

Hurst is quoted as saying that while a 30 per cent cut was proposed, Prime Minister Browne indicated that this may not be sufficient and that the government is proposing in a 50 per cent cut.

Hurst said that if the union agrees to this proposal, staff will also benefit from shares in LIAT and that any proposal would need to be taken to the shareholder governments as an alternative to liquidating the airline.

The report noted that suggestions for duty waivers, entrepreneurship funding, land leasing for agricultural purposes among others have also been placed on the table and that Browne also discussed his plans for the regional carrier.

Prime Minister Browne has said previously that his administration had already earmarked EC$20 million towards the capitalisation of the new airline.

Browne said he has written to the Prime Ministers Mia Mottley of Barbados and Dr Ralph Gonsalves of St Vincent and the Grenadines, asking them to attend a final meeting to discuss his proposals for reorganising LIAT.

“So, in a last-ditch effort, I have requested a meeting for next Monday, which I believe I will get, to look at the possible reorganisational plan. We should have that plan completed by Friday,” he said. (CMC)

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3 COMMENTS

  1. Prime Minister Browne keeps using the word reorganisation or reorganising, but the correct technical term that has a clear and precise meaning in business, and perhaps law, is restructuring. What he should be clamouring for is no liquidation, but restructuring.

    Our Government cannot say that they don’t support liquidation when they are putting forward two (2) proposals, and actually seem to have no problem with liquidation, if they can get LIAT 2020 Ltd.

    I think Antigua and Barbuda should be focussing only on preventing liquidation, and should show that it’s serious about it. Our Government should once again offer to buy the shares of Barbados and St. Vincent and the Grenadines, which could not value anything much now. Antigua and Barbuda must be prepared to go to the Caribbean Court of Justice (CCJ) to oppose liquidation of LIAT 1974 Ltd. But, we cannot go before a judge and say we oppose liquidation when we are also presenting an alternative plan.

    Our Government should not be negotiating with workers to reduce their severance because, because thats a bad example to the private sector. Government should never try to bend the laws or the rules that govern industrial relations.

    It is also not the business of other countries what the Antigua and Barbuda Government is negotiating with local LIAT workers. The Government needs to proceed with a single goal: no liquidation. If negotiations and legal processes fail we need to forget about LIAT 2020.

  2. Prime Minister Browne keeps using the word reorganisation or reorganising, but the correct technical term that has a clear and precise meaning in business, and perhaps law, is restructuring. What he should be clamouring for is no liquidation, but restructuring.

    Our Government cannot say that they don’t support liquidation when they are putting forward two (2) proposals, and actually seem to have no problem with liquidation, if they can get LIAT 2020 Ltd.

    I think Antigua and Barbuda should be focussing only on preventing liquidation, and should show that it’s serious about it. Our Government should once again offer to buy the shares of Barbados and St. Vincent and the Grenadines, which could not value anything much now. Antigua and Barbuda must be prepared to go to the Caribbean Court of Justice (CCJ) to oppose liquidation of LIAT 1974 Ltd. But, we cannot go before a judge and say we oppose liquidation when we are also presenting an alternative plan.

    Our Government should not be negotiating with workers to reduce their severance because, because thats a bad example to the private sector. Government should never try to bend the laws or the rules that govern industrial relations. It

    It is also not the business of other countries what the Antigua and Barbuda Government is negotiating with local LIAT workers. The Government needs to proceed with a single goal: no liquidation. If negotiations and legal processes fail we need to forget about LIAT 2020.

  3. In these times of CoronavirusCOVID19 Antigua and Barbuda will not have the means to successfully pursue LIAT 2020. It’s going to be too difficult to do. Besides, if the bid to prevent liquidation of LIAT 1974 Ltd fails, all of LIATS business connections, agreements with international airlines etc. will be at the disposal of the liquidators to sell and do what ever they feel like.

    How many planes will a new LIAt 2020 have? It’s going to be ridiculous starting from scratch. And, doomed to failure.

    Besides, the Antigua and Barbuda Government’s primary.responsibility right now is to look after the basic needs of the Antigua and Barbuda people, such as food, clothing, shelter and healthcare. No government can renege on such responsibilities. The Government seems not to presently understand it’s true role.

    Besides, it’s now well known by medics, scientists etal that there is going to be a new surge in COVID19 during the next Winter Tourist Season. So, how does our future look?

    I support doing everything possible to prevent the liquidation of LIAT 1974 Ltd, but Antigua and Barbuda needs to negotiate for the total ownership of LIAT 1974 Ltd. Both Barbados and St. Vincent and the Grenadines have no further interest in LIAt 1974 Ltd. We can retain the Commonwealth of Dominica as our only partner.

    A restructured LIAT 1974 Ltd under the ownership of Antigua and Barbuda and Dominica can work, and will be successful. The key factor for success is the market share. If we liquidate, we lose all market share as well. So, let’s make our only objective being to prevent liquidation, and an Antigua and Barbuda and Dominica sole future Ownership in the immediate aftermath.

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