Business

Job cuts loom at LIAT as carrier looks to reduce high operating costs

Monday, December 1, 2014


The current chairman of the share holder member states of the financially troubled regional airline (Leeward Islands Air Transport) LIAT, Prime Minister Ralph Gonsalves has indicated that he is unaware of the details regarding any possible retrenchment of employees, the carrier needs to implement in order to deal with its high cost of operations.


Early last week, the troubled airline described as “speculation” media reports that it was planning to trim its workforce by sending home as many as 200 employees.


According to the Observer newspaper in Antigua & Barbuda, the airline, which is owned by the governments of Antigua & Barbuda; Barbados, Dominica and St. Vincent & the Grenadines, would send home the workers as it moves to improve its financial stability.


But LIAT Communications Manager Desmond Brown said while the company has taken note of the media reports “any staff cuts that may be required in order to reflect the size of LIAT’s business in the future will only be made in consultation with staff and their representatives.


Gonsalves, who is also the Prime Minister of St. Vincent & the Grenadines, said that he is aware of plans to streamline the operations of the airline as to ensure “that LIAT be placed on a sounder commercial competitive footing.


“I know that those are policy instructions to the board and to the management. The shareholders have not been informed of the specifics about the way in which they will carry out these decisions for efficiency. So I cannot speak specifically towards any retrenchment.”


But he said he wanted to make it clear that LIAT has explained on numerous occasions the need to cut the high costs of its operations, including salary, fuel, repairs and lease arrangements. -(CMC)

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