The Antigua and Barbuda government has faced flak from the union of former employees of the now-defunct LIAT (1974) airline in the country over its severance package plan. The latter has raised demand for full compensation after calling the Gaston Browne-led Labour government’s plan to offer 32 per cent of the severance pay an “insult” and “violation of their rights”.
LIAT (1974) Ltd, also known as the Leeward Islands Air Transport Services, was a regional carrier based in the dual-island nation that operated inter-island flights in the Caribbean. The carrier ceased operations in January 2024 when its ATR 42-600 aircraft left the V.C. Bird International Airport, its main base, in St. John’s.
The government said in an update that the first instalment of the EC$16.72 million LIAT Employees Compassionate Payment Bond had been transferred to BDO Eastern Caribbean and eligible former employees were set to get the payments this week.
PM Browne spoke about severance in Budget speech
The prime minister spoke about the severance issue in his 2025 Budget speech in Parliament in December. He said, “Our government is determined to address the concerns of former LIAT 1974 Ltd. workers, especially the more than 400 employees who were stationed in Antigua.
“Our intervention will provide much-needed relief and demonstrates our dedication to fairness and justice, representing meaningful action on behalf of the affected workers.”
Last weekend, PM Browne revealed that EC$2 million would be distributed under the bond — a 10-year instrument with an annual interest rate of two per cent.
However, the 32 per cent payout owed to the LIAT employees in Antigua left the Antigua and Barbuda Workers Union (ABWU) upset and it called it a “stark betrayal” by an administration that identifies itself as “Labour”.
In a press release published on January 8, 2025, the union said the government would give full severance payment to Antiguan workers if it truly appreciated the contributions made by LIAT workers to the country and regional aviation.
It also accused the government of giving concessions to entities for no substantial return and ignoring the rights of workers at home. Claiming that inflation has eroded the severance values over the last five years, ABWU said offering 32 per cent without taking into account the inflation faction was “both heartless and unconscionable”.
The government has cited financial constraints for its inability to make full severance payments and argued that it has little legal obligation. Earlier, it proposed a 50 per cent settlement featuring cash, bonds, and land but reduced it later to 32 per cent to reflect its ownership share in the discontinued airline.
The union also pointed out concerns about fairness saying agreements to give 50 per cent severance to some employees could result in inequities.
ABWU compared Antigua’s handling of the issue with other shareholders in LIAT, such as Barbados and Sat. Lucia. Barbados – the largest shareholder – started final severance payments last year while St. Lucia has met all obligations. These have triggered more disappointment in Antigua.
The Browne-led government has also been accused of ignoring the union and setting a “dangerous precedent” for labour relations in Antigua and Barbuda. The union also reminded the government about the International Labour Organisation’s Convention No.98, which promises the right to organize and bargain collectively.
Low pay for LIAT 2020 workers
Antigua’s LIAT problem doesn’t end with the severance payment. Last year, Browne had said that the majority of LIAT (1974) staff would be absorbed in the revamped LIAT (2020), a joint venture between Antigua and Barbuda and Air Peace, Nigeria, which started operations in August 2024.
Several severed workers were re-hired but reports showed that these employees were earning salaries that were significantly below the industry standards, with some getting half of what they received in LIAT (1974).
Speaking about transitioning workers getting less pay under the new airline, the union said it was a double injustice for them and requested the government to reveal its agreement with Air Peace. Concerns were raised over allegedly lopsided deals with private players.
The union said in its release, “We are grateful for LIAT’s return to the skies and recognize the airline’s critical role in regional connectivity. However, this does not absolve the Government, as a shareholder, of its moral and legal obligation to treat workers fairly and to honour their right to severance.”
However, many people criticized the union led by David Massiah, a senator from the opposition United Progressive Party, saying the government is not legally bound to give financial relief to the severed workers of LIAT (1947) or that it is not taking any legal action despite criticizing the government.
