The union representing former LIAT workers in Antigua and Barbuda has described the government’s severance payment plan as an “insult” and a “violation of their rights,” renewing calls for full compensation.

In its latest update, the government announced that the first installment of the LIAT Employees Compassionate Payment Bond, valued at EC$16.72 million, had been transferred to BDO Eastern Caribbean for distribution. Eligible former employees are set to receive payments this week.

Prime Minister Gaston Browne revealed on Saturday that EC$2 million would be distributed as part of this bond. The payout represents 32% of severance owed to 405 LIAT workers stationed in Antigua. The 10-year bond carries an annual interest rate of 2 percent.

However, the Antigua and Barbuda Workers’ Union (ABWU) condemned the reduced payment, calling it a betrayal by the self-proclaimed “labour” government. “If this government truly valued LIAT workers’ contributions to the country and regional aviation, it would ensure full severance for Antiguan workers,” the union said in a press release.

The union criticized the administration for granting concessions to foreign entities while neglecting workers’ rights. It noted that inflation has significantly eroded severance values over the past five years. “Offering just 32% now, without considering inflation, is both heartless and unconscionable,” the statement added.

The government has maintained it cannot afford to pay full severance and argues it has no legal obligation to do so. Previously, it proposed a 50% settlement comprising cash, bonds, and land but later reduced this to 32% to reflect its ownership share in LIAT 1974.

The union also raised concerns about fairness, pointing out that agreements to offer 50% severance to some workers may create inequities. The possibility of two separate classes of severance—50% for some and 32% for others—raises serious questions about fairness and equity. Such disparity is unacceptable in a nation that claims to uphold justice for all.

The union contrasted Antigua’s handling of severance with that of other LIAT shareholders. Barbados, a major shareholder, began final severance payments in 2024, while St. Lucia has settled all claims. These disparities have fueled demands for equitable treatment.

The ABWU accused the government of bypassing its role as the workers’ legally recognised bargaining agent, undermining principles of collective bargaining and setting a “dangerous precedent” for labor relations in Antigua and Barbuda.

It also highlighted the government’s obligations under the International Labour Organisation (ILO) Convention No. 98, which guarantees the right to organize and collectively bargain.

Following LIAT 1974’s collapse, the government partnered with Nigeria’s Air Peace to launch LIAT 2020, re-hiring several severed workers.

Adding to the controversy are reports of low wages for workers transitioning to LIAT 2020, with some earning significantly less than industry standards. “These workers have endured a double injustice under an administration,” the union said, while urging the government to disclose its agreement with Air Peace amid concerns about lopsided deals with private entities.

The union has demanded a fair and reasonable severance settlement rooted in genuine dialogue with the workers and their representatives.”