BRIDGETOWN, Barbados, CMC – The Barbados government says it will make a complete cash offer of BDS$75,000 (One ABDS$=US$0.50 cents) to former Barbadian workers of the cash-strapped regional airline, LIAT, even as it acknowledged that “it has no legal obligation to settle any indebtedness” to them.
Director of Finance and Economic Affairs Ian Carrington, in a statement, said that to date, some workers had received two monetary gifts and a loan from the government.
“In addition, some workers who contributed to the Barbados National Insurance and Social Security Scheme have received what they are entitled to from the Scheme,” he said, adding that the Barbados government will offer an ex-gratia payment to former Barbadian workers of LIAT.
“The ex gratia sum offered to each former employee will be no greater than the sum due to them from LIAT (1974) Ltd as a consequence of the termination of their employment following the airline’s administration,” Carrington said.
He noted that in calculating the government’s ex gratia offer, the loan and other payments already received, not including gifts, will be deducted.
“A maximum cash offer of BDS$75,000 will be made,” he said, adding that where after deductions, the balance is more excellent than BDS$75,000, a portion will be paid in bonds.
Carrington said he would contact the Ministry of Tourism and International Transport to meet with the former airline workers to complete the payments by the end of this month.
“I would like to have this situation behind us once and for all…it would be safer to say they would be paid early next month,” he added.
During her budget presentation in March, Prime Minister Mia Mottley announced a BDS$10 million ex-gratia payment to former airline employees.
In May 2021, as a compassionate gesture, the government agreed to give the Barbadians who did not receive severance BDS$2,000 as a one-off cash gift and a BDS$2,000 per month advance for one year which was to be repaid at a future date from any severance payment settlement.
The Antigua-based LIAT (1974) Limited entered into administration in July 2020 following increased debt and the impact of the coronavirus (COVID-19) pandemic.
The airline is owned by the governments of Antigua and Barbuda, Barbados, Dominica, St Vincent, and the Grenadines. A downsized version of the carrier has been operating a reduced schedule with a limited workforce since November 2020.
Before entering into administration, LIAT serviced several regional destinations and has since scaled down its operations. It now serves Anguilla, Antigua, Barbados, Dominica, Guyana, Grenada, Guadeloupe, Martinique, San Juan, Puerto Rico, St Kitts, St Lucia, and St Maarten.
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