ST. JOHN’S, Antigua, CMC—The Antigua and Barbuda government says it has made the first installment of the LIAT Employees Compassionate Payment Bond, which has since been transferred to BDO Eastern Caribbean for distribution to eligible former LIAT employees.
A statement by the Office of the Prime Minister said that the payment allows former LIAT workers stationed here to begin receiving payments toward their severance.
“The Compassionate Payment Bond, issued by the Government, is a 10-year bond valued at EC$16.72 million (One EC dollar=US$0.37 cents) with an annual interest rate of two percent.
“This bond addresses Antigua and Barbuda’s 32 percent share of the severance owed to 405 former LIAT (1974) Ltd. employees, reflecting the nation’s ownership share in the regional airline,” the statement said.
LIAT 1974 Ltd has been under administration since July 24, 2020. It was declared bankrupt in January last year
Apart from Antigua and Barbuda, the airline’s other shareholders were Barbados, Dominica, St Vincent, and the Grenadines. Most of these islands have reached agreements with their former LIAT workers on severance payments.
“This bond further demonstrates the Government’s commitment to the former LIAT employees and ensures a measure of relief for those affected by the airline’s closure,” the Office of the Prime Minister said.
“Former LIAT 1974 Ltd. employees are advised to contact BDO Eastern Caribbean, the appointed escrow agent, to receive payment. BDO is responsible for managing and distributing the bond payments to ensure a smooth and equitable process for all eligible recipients,” it added.
Last December, as he delivered the country’s national budget, Prime Minister Gaston Browne said that his Government is determined to address the concerns of the former LIAT 1974 Ltd. workers, especially those stationed in Antigua.
He said then that the bond would be a 10-year instrument on which payments would continue annually until the EC$16.7 million principal plus interest was fully extinguished.
The Antigua and Barbuda Workers Union (ABWU) has called on the Government to negotiate an amicable settlement. Still, the Government has accused the union of not wanting to negotiate in good faith.
The Government had initially been offered a 50 percent compassion payment in cash and bonds to the former employees, which Browne said amounts to EC$110 million. The ABWU has said in the past that it would continue to seek the 100 percent severance payment to the former airline employees.
The union has not yet responded to the latest statement from the Government regarding releasing the bond.
and then 