Prime Minister Gaston Browne has expressed hope that other regional leaders will accept his proposal to use some of the sale proceeds from LIAT 1974 aircraft towards payment of former workers as he once again called on the union to agree to the government’s compromise.
In June, the Prime Minister submitted a letter to the Chairman of the Caribbean Development Bank (CDB) and the former shareholders of LIAT 1974, suggesting that part of the US$12.1 million used to purchase the three aircraft in the CDB’s possession—which in part is expected to reduce the outstanding balances on LIAT 1974 Ltd’s re-fleeting loan—should be used to pay off severances for its former workers.
Antigua and Barbuda’s negotiation with the union representing the former workers—the Antigua and Barbuda Worker’s Union (ABWU)—over the percentage to which the government owes the former staff has been in limbo.
The ABWU has remained bullish on its stance that the government should pay 100 percent severance while the government has moved from offering 50 percent to what they call a compassionate payment offer of 32 percent—representing their shareholding percentage in LIAT 1974 Ltd.
Speaking on the sidelines of the opening ceremony of UWI Five Islands’ artificial intelligence conference this week, Prime Minister Browne suggested that there is some receptiveness towards the deal from regional leaders.
“The Prime Minister of Dominica, Honourable Roosevelt Skerrit, has said that he is onboard and willing to do it, [St Vincent and the Grenadines Prime Minister] Ralph Gonsalves now has other priorities, [Barbados Prime Minister] Mia Mottley said she was giving consideration to it, so we are still awaiting the concurrence of two other prime ministers, but if the bank would accept our proposal, Antigua and Barbuda is willing to make approximately US$4 million towards paying severance,” he said.
Although the CDB has said that it is not a party to the sale agreement and is mainly responsible for providing the necessary consent for the sale, PM Browne has written to the bank.
According to the bank, most of the proceeds generated under the sale arrangement will be proportionately allocated towards paying outstanding balances on CDB loans that supported LIAT (1974) Ltd’s operations and any decision on the other proceeds would be a decision of the shareholding governments.
PM Browne said that the government is hoping that the CDB allows use of its interests in the proceeds to pay the severance in part.
Whilst the former staff remain in limbo over the financial compensation package following the approved dissolution of LIAT 1974 in 2022 (the company made its final flight in January 2024), both the ABWU and PM Browne have called each other’s proposals on the matter “unreasonable” and harmful to the interests of the workers.
