By Sue-Ann Wayow
IT is going to cost taxpayers $110million to pay severance and retrenchment packages to the 400 plus employees of state-owned Caribbean Airlines (CAL).
Finance Minister Colm Imbert said in the Senate on Tuesday, “Caribbean Airlines does not have the required finances for the severance payments and therefore the severance payments will be financed by the Ministry of Finance.”
Imbert was answering several questions asked by Opposition Senator Wade Mark relating to the recent announcement that the airline would be retrenching at least 25% of its entire workforce.
The Finance Minister said, “The estimate given to the Ministry of Finance at this time this is subject to finalisation in the vicinity of $110 million.”
He said the decision was made after months of consultation with International Air Transport Association (IATA) and another world renowned consultation company and admitted to not being happy about the situation.
“I am saddened by all of this. This is not something that any of us would have wanted to see.”
Mark also asked whether CAL’s executive management team will also be candidates for reductions or adjustments in their compensation packages to which Senate President Christine Kangaloo replied, “ Senator Mark, that question does not arise.”
Imbert added with a reduced operating jet fleet of eight and five ATR’s, that will still be adequate to handle any passenger demand including future demand, CAL was advised in its consultation.
“It is expected that passenger demand will decrease in the near future and for the next year or so. I am advised that traffic will return to pre-Covid levels in or around 2023,” he said.
And Imbert also listed the additional support that retrenched workers will receive.
These include counselling services for employees and their families, outplacement services using recruitment agencies and the Ministry of Labour, transition training , career guidance and support and financial management.
