BRIDGETOWN (CMC) — Pilots employed with the cash-strap regional airline, LIAT, Friday confirmed that they had agreed to a less than 10
President of the Leeward Islands Airline Pilots Association (LIAPA), Carl Burke, told the Caribbean Media Corporation (CMC) that while he was not at liberty to disclose the exact amount the pilots had agreed to, pending the Prime Minister Mia Mottley of Barbados receiving the necessary communication, he was nonetheless indicating that it was not the 10 per cent that had been requested.
He said that during a meeting with LIAT a request had been made for the 10 per cent pay cut across the board and that the pilots “wrote to them and said we did not have the confidence in LIAT’s management to take us out (of this)… and we were very cautious about making an investment in the company at this time.
“We met with the shareholders on Tuesday and Prime Minister Mottley did give a guarantee at the shareholder level that she would ensure that there was accountability ad it would not be business as usual”.
He said pilots on Thursday night “actually voted” on the salary cut and which has since been communicated to Mottley.
“At the moment I have to make sure that she has received our communication before I could give you that information… (but) it is less than 10 per cent, it is not 10 per cent,” Blake told CMC.
The shareholder governments of the airline are Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines and they have been seeking to get other Caribbean countries to contribute a total of US$5.4 million in emergency funding need to keep the airline in the sky.
At the same time, 11 destinations had been given until March 15, to respond to the airline’s minimal revenue guarantee (MRG) proposals.
Under and MRG model, it is likely that a few flights may be cut if the government is not prepared to fund them with a guarantee.
Media reports here said that trade unions representing the airline’s workers at its 15 destinations, had, during a six-hour meeting here on Wednesday involving Mottley and her St Vincent and the Grenadines counterpart, Ralph Gonsalves, agreed in principle to the salary cut, pending further deliberations with their members.
The unions are reported to have agreed to a six per cent salary cut.
The Barbados-based online publication, Barbados TODAY, reported Friday that the airline could collapse if LIAT management is not given a positive response from the trade unions before the Barbados financial year ends on March 31.
LIAT’s finances are so dire that if they do not come to an agreement to allow for savings for the shareholders, which would keep LIAT viable, the airline could fold,” the publication quoted a source as saying.
Blake dismissed suggestions that the pilots were to blame for “holding up” efforts to ensure the survival of the airline, telling CMC: “I don’t think we should have been blamed for that. As I stated earlier on we have been in a situation where the management has made some serious blunders over the years and this has placed us in the position we are in right now.
“The pilots took the time out to explain a lot of these things to the shareholders. They basically are now being brought into the loop …with the day to day running of LIAT. They listened to us, they are very concerned about what the unions brought to the table.”