Antigua’s Prime Minister Gaston Browne announced that his government will pay employees throughout the region of the failed airline LIAT. Browne said that his government will pay at least one month’s salary to those who have not been paid for several months.
“We have advanced US$1 million so far to pay all LIAT workers right throughout the system for July,” Browne announced Saturday afternoon on Pointe FM.
“However, our position is that any liability that arose prior to July should form part of the receivership estate because we stepped in in July. That’s when we decided to take some level of responsibility to give support to the Administrator,” Browne continued.
The Government of Grenada also pledged to cover salaries from May to July for Grenada-based employees.
More than 500 employees were relieved of their duties before court appointed Administrator Cleveland Seaforth took control of the airline in late July. Since his stewardship begun, at least 40 more employees have been laid off, but Seaforth insists that those are temporary and only the courts can determine permanent terminations.
The Antiguan government has been at the forefront of the airline’s debacle with a call for its reconstitution and a pledge of financial support rather than a wind up of operations. Prime Minister Browne proposed a plan that requires an initial recapitalization of EC$108 (US$40) million; half of which his government is willing to put up.