More retrenchments likely at LIAT

Another 103 employees of stricken LIAT (LIA, Antigua) are to be retrenched as the airline restructures, joining 564 who were let go last year after the Caribbean regional airline went into administration in July 2020. This is according to a January 22, 2021, letter by LIAT’s administrator, Cleveland Seaforth of BDO Antigua and Barbuda, to the country’s Prime Minister Mia Mottley and eight other Caribbean Community (CARICOM) Heads of State. In it he appealed to CARICOM governments to pay XCD79 million East Caribbean dollars (USD29.2 million) in severance pay to the retrenched LIAT employees, failing which, he warned the governments could face legal action. Seaforth said the total unpaid entitlements to retrenched employees amounted to XCD119 million (USD44 million) on April 30, 2020, of which XCD79 million (USD29.2 million) was owed in severance pay. Based on preliminary estimates, it was highly unlikely that any significant portion of the employees’ entitlement could be gleaned from the LIAT estate sale should the airline be liquidated, he said. He pointed out that Letters of Comfort by the respective CARICOM governments to LIAT’s auditor – in which they undertook to provide financial support for the company’s continued operation – meant they were exposed to litigation if they failed to do so. Based on his discussions with trade unions in the various territories, he said both the current and former LIAT employees were experiencing severe financial hardship amid a high level of disappointment and disillusionment with the perceived lack of support from the respective governments. Seaforth said apart from any possible severance from the LIAT estate, the Antigua and Barbuda government had indicated it was prepared to offer staff up to a maximum of 50% of their severance pay either in cash, land or government bonds, or a combination of the three. He requested that other CARICOM governments consider the same and engage on this with Antigua and Barbuda. Seaforth informed the CARICOM leaders he had copied the letter to the Secretary-General of CARICOM, Irwin LaRocque, hoping that a regional solution could be reached.