As we approach another labour day
On September 20th, 2024, Antigua and Barbuda’s newest union, The People’s Union was launched. We outlined several concepts we believe are critical for the advancement of the working people and the simultaneous development of the country.
These concepts are:
- A four-day work week
- A national retirement age with benefits
- National paternity leave
- A national living wage
- A complete review and overhaul of the Workmen’s Compensation Act
- A comprehensive workers education program
Within the past few weeks, the government has announced that paternity leave will be introduced for government employees. We see that in this case the government is listening, and we applaud the move. The government must go further and make it mandatory in law for all employees as was done with respect to maternity leave.
We are also aware that the government very recently, through Attorney General Sir Steadroy Benjamin indicated that it is looking at instituting a national retirement age. We look forward to this but feel very strongly that the government should take a comprehensive approach to these matters and include other stakeholders in the process.
The focus of this piece though is the matter of severance pay. On April 17th, 2025, there was a news report that the Antigua and Barbuda Workers’ Union is in the process of actively engaging the liquidator of the Caribbean Airport Services (CAS) to secure the best possible outcome. Well, we need to look at this matter in its current and correct context.
Caribbean Airport Services (CAS) is a company owned jointly by LIAT (1974) Ltd and Massey on a 51% -49% split. In 2020, under the effects of Covid 19 both LIAT (1974) Ltd and CAS were forced to take action which resulted in hundreds of employees losing their jobs through redundancy. To date the employees of LIAT (1974) Ltd have seen very little of their severance and other entitlements. This includes employees who retired years ago and are yet to receive payments relative to their retirement. Monies which they are entitled to. LIAT Ltd is already liquidated with hundreds of former employees not knowing how they are going to get their severance payments and other entitlements, which in the case of the severance entitlements is incurring 10% interest for each year the monies are not paid.
So, there is no money to pay the hundreds of LIAT workers in Antigua. There is no money to pay the nearly one hundred CAS employees made redundant in 2020. It is a known fact that CAS has only a few pieces of aged equipment with very little value. They own nothing else. Where then is the money to pay severance to the employees coming from? There was talk at one time that Massey had given a commitment to pay 49% of the severance entitlements. The truth of this cannot be verified as there is apparently nothing in writing. One cannot squeeze blood out of stone. Simply put, there is no money and there are no assets to liquidate to pay the employees past or present. The employees should not be given false hope. They have suffered enough.
It was known by all concerned that what is now taking place at CAS was going to happen. It was just a matter of time. Several parties apparently had interest in acquiring the CAS Operation. One interested party is a locally owned and operated company which has been conducting business at the VC Bird International Airport for nearly forty years. This company indicated its interest to the current management of CAS as well as the Airport Authority and the Minister of Tourism who also has responsibility for aviation. Two key factors in the interest proposed by this company are to secure the jobs of the current employees as well as to give those employees shares in the company since the possibility of them receiving severance payments is very slim to none. The efforts of the company, Ports Services Ltd, have been frustrated at every turn.
Over the years we have seen several companies closing operations and employees left to languish and hold on to false hopes. This must come to an end. We have legislation in place making the payment of severance pay mandatory when positions are made redundant. In unionized workplaces collective bargaining agreements also make provision for severance payments in matters of redundancy. In most cases the severance entitlements set out in collective bargaining agreements are better than what is provided in the Labour Code. But the law and collective bargaining agreements do not guarantee that severance payments will be made when due. The answer is legislation whereby every employer from the date they employ anyone is made to create a fund in which monies are deposited, first to create a severance fund which is managed like a thrift fund. In cases where employees work up to retirement and positions are not made redundant the monies accrued in the names of those employees be paid to them as a retirement benefit.
A former attorney general contemplated the idea of legislation whereby employees who had ten or more years of service would qualify for severance pay and could leave their employment and be paid severance pay for their years of service. This concept is worth looking at as one possible way to deal with this problem.
As we approach another labour day, we in The People’s Union make a call to our two major political parties to do more than the normal political speeches but to outline clear positions on this burning issue. We call on the said parties to engage stakeholders to come up with a workable solution to this problem. Remember the Castle Harbour workers. Remember the workers of the two white elephant casinos, one of which was recently broken down. Remember the Arawak Motors workers. Remember the Stanford workers. And I am sure there are many more.
Ralph Potter,
President
The People’s Union.
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It’s about time someone stands up for LIAT & CAS workers. Government stands with the owners not the workers!