ST. JOHN’S, Antigua, March 19 2015 – LIAT has responded to an apparent threat of industrial by pilots accusing the pilots’ union of using a “cynical tactic to exploit the fears of the travelling public.”
The Leeward Islands Airline Pilots Association (LIALPA) had listed several areas of contention in a paid Media Statement
But the management of the regional carrier responded saying it considers the statement to represent the views of the pilots and that it is highly suggestive of industrial action being threatened.
“Threatening industrial action shortly before a public holiday, in this case, the Easter period, is a common, often repeated and cynical tactic employed by LIALPA to exploit the fears of the travelling public,” Chief Executive Officer David Evans said.
“I have had dealings with numerous pilot associations over many years and in many jurisdictions. These dealings have often been tough and uncompromising, but always based on mutual respect and a clear understanding of the needs of the business. This has not been my experience with LIALPA. Unless we can reach a common understanding of LIAT’s current circumstances, LIAT’s future looks bleak.
“We will do everything we can to minimise industrial action over the Easter period, for the sake of the travelling public. If however, there is significant disruption, the resulting financial crunch would mean that salary payments would be further delayed, and the airline would be unable to meet the demands of its creditors. Such a situation would put LIAT in a position of no return, leading to a shutdown of the airline. This would be catastrophic for the entire region and its economies, and or the jobs and livelihoods of thousands of people,” Mr. Evans added.
Responding to the specific issues raised by LIALPA, Evans said all of the grievances are either before the courts or being dealt with in the normal manner.
LIALPA had expressed its disappointment in the company’s decision to confirm the dismissal of two pilots late last year.
But LIAT said the two pilots were terminated after they blatantly disregarded instructions from the company’s Flight Operations Department and flew an aircraft to V.C. Bird International Airport just hours before the passage of tropical storm Gonzalo. It said the decision to terminate followed a full internal investigation of the incident during which the pilots were represented.
“The Company is quite convinced it acted correctly in this matter, and it is before the courts,” Mr. Evans said.
The pilots union also accused the company of “poorly planned implementation of the aircraft fleet renewal project”.
Mr. Evans in response said 90 percent of the new fleet will be in place by April. He noted that the removal of the old fleet has been hampered by lack of capital, soft economies, weak aircraft markets and unnecessary industrial action.
The LIAT CEO rebutted LIALPA’s claims about the company’s pension fund, saying salary deductions are neither illegal nor unauthorized; and the Courts held that in the management of the pension funds, the company was acting in the best interest of its employees.
LIALPA has been asking for a salary increase for pilots who now fly “the heavier ATR-72 aircraft” but Mr. Evans said there is no breach of the Collective Agreement or the Arbitration Award in this regard.
“Both require the parties to negotiate. The Company has proposed an increase. The pilots are demanding an 18 percent increase across the board which is impossible for the Company to meet,” he said
“On average LIAT pilots fly less than 50 hours every four weeks. LIAT complies fully with all applicable Eastern Caribbean Civil Aviation Authority (ECCAA) regulations which permit significantly more flying hours per pilot than currently obtains. LIAT is hoping, in the future, to attain the levels permitted by the regulator,” Mr. Evans added.
The LIAT CEO said shareholder governments have said that they are prepared to put more equity into LIAT providing it reduces its costs and improves its operational performance.
“The largest contributor to LIAT costs are employee costs. All shareholders are unanimous in their agreement that costs must be reduced. With respect to operational performance, the single largest contributor to poor performance is unplanned crew absence,” Mr. Evans said.
