Valley: Govt can’t help

Minister in the Ministry of Finance Ken Valley said yesterday severance payments for ex-BWIA employees is a matter for the airline’s management, not Government.

Valley was speaking after a meeting with union representatives at his Twin Towers office. “I don’t know. You’ll have to ask BWIA. Government has not retrenched public servants,” he said when asked if the workers will receive payment. BWIA said on Tuesday that it was unable to pay severance due to 617 employees retrenched in January. The ex-employees were supposed to receive their payments two weeks ago. BWIA yesterday promised to release $1.5million or about half months pay to retrenched workers.

Both union representatives and Valley said the meeting went well but there was no word on when the retrenched employees will be paid. “Government cannot assist at this time but that situation might change if we start to talk about restructuring the airline,” Valley said. Union officials are now trying to meet with chairman Lawrence Duprey. BWIA executives last week asked Government for financial assistance. Valley said he has received proposals but added that Government will only be willing to help the airline if it presents a viable plan and if the other major shareholders help as well.

According to the 2001 annual report, AIG and Roytrin Securities each had a ten percent stake in the airline. Government and unions together own a 49 percent stake. Asked whether Government, as a major shareholder would ask for the removal of BWIA’s executive management, Valley replied, “In the restructuring of BWIA there are no limits.” Valley added that Government would require equity if it gives financial assistance and he did not rule out the possibility that it would take control of the airline in the short run. Valley also said Government made the same stipulation when it helped LIAT. He added that BWIA’s request was different. In LIAT’s case Government guaranteed loans made by LIAT’s shareholders. It did not give money to the airline itself.

“The situation with Bwee seems to be extremely fluid.” Valley said, adding that Government thought the $30.75 million it gave to the airline would have been enough. The airline then asked for help with severance payments, then salaries and then sent a notice of demand for payment of $19 million for leased aircraft. “Quite frankly the Government cannot operate in that environment where the story changes practically every week,” Valley said. “The Government’s position right now is simply a strategic approach to get the airline right. There will always be a national airline but perhaps in a restructured form. Perhaps leaner and meaner.”