The Barbados government says it will make a maximum cash offer of BDS$75,000 to former Barbadian employees of the struggling regional airline, LIAT, while admitting that “it has no legal obligation to settle any indebtedness” to them.
According to Ian Carrington, Director of Finance and Economic Affairs, some staff have received two monetary gifts and a loan from the government to yet.
“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 added, adding that the Barbados government will pay former LIAT employees an ex-gratia payment.
“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 result of their employment termination following the airline’s administration,” Carrington stated.
He stated that the loan and other monies already received, excluding gifts, will be deducted from the government’s ex gratia offer.
“A maximum cash offer of BDS$75,000 will be made,” he added, adding that if the sum is larger than BDS$75,000 after deductions, a portion will be paid in bonds.
Carrington stated that he will contact the Ministry of Tourism and International Transport to arrange a meeting with former airline employees, with the goal of completing the payments by the end of this month.
“I’d like to put this situation behind us once and for all…””It’s safer to say they’ll be paid early next month,” he adds.
Prime Minister Mia Mottley announced a BDS$10 million ex-gratia payout to former airline employees during her budget presentation in March.
As a sympathetic gesture, the government agreed in May 2021 to provide Barbadians who did not receive severance BDS$2,000 as a one-time monetary present, as well as a BDS$2,000 per month advance for one year, to be reimbursed at a later date from any severance payout settlement.
LIAT (1974) Limited, situated in Antigua, entered administration in July 2020 as a result of growing debt and the impact of the coronavirus (COVID-19) pandemic.
The governments of Antigua and Barbuda, Barbados, Dominica, and St Vincent and the Grenadines own the airline. Since November 2020, a scaled-down version of the carrier has been operating on a curtailed schedule with a limited workforce.
Prior to entering administration, LIAT served various regional destinations. It has since trimmed back its activities and now serves Anguilla.
