Christmas $$$millions for BWIA workers

NATIONAL airline BWIA will payout $4.1 million in severance benefits on December 22 to workers who took VSEP. Another $1 million will be paid on December 29, and any other outstanding monies are to be settled by January 31, 2004. BWIA’s Director of Employee Service Ian Ashman told the Industrial Court yesterday that the airline has agreed to settle all outstanding severance payments to the former workers. Christopher Abraham, president of the Aviation Communications and Allied Workers Union (ACAWU), told Judge Gregory Baker that the union has agreed to the settlement offered by the airline.

An interim order was then drawn up by the judge. But one area remained outstanding. The union wants interest on the severance, which according to Abraham should have been paid since March this year. Abraham said there was precedent set and asked the court to follow a previous decision in a matter involving the Public Services Association (PSA). But the airline had no position on that yesterday. Judge Baker gave the airline until January 5 to file its submissions on the issue of interest on the severance payments. The union was given one week in which to reply and hearing on this issue was put for January 13. When the matter was called yesterday, Ashman told the court that 417 BWIA workers are to be paid severance benefits. Of this amount, 376 belong to ACAWU. Ashman said 333 workers have been paid their severance, with the other 43 outstanding. Ashman said the airline will pay $4.1 million on December 22 and a further $1 million on December 29. The airline’s representative said all outstanding monies will be paid off by January 31, 2004.

Abraham wondered what will happen if the airline fails to pay the severance benefits on the promised dates. Judge Baker assured Abraham there was no problem. He said if the airline fails to pay on time, then the matter will be brought back to the Industrial Court. The union had filed submissions with the court on October 2 on the issue of interest on the severance payments. “It is a statutory debt which will carry interest just like VAT, NIS, and PAYE. Interest applies in civil cases. This court has the authority to apply interest just like the civil court,” he added. The cash-strapped national airline is indebted to its former workers to the tune of $54 million. So far, between $36 and $40 million have been paid out , Ashman reported.

Following the hearing, Abraham said he will be seeking retroactive interest payments. “From the time money is owed on VAT, PAYE, and NIS, interest steps in. When you owe the banks and credit unions, penalty applies to any breach of payment. We will be seeking interest for those who have already been paid off. Their money was due since March. If they had that money, they could have invested it, or made their bank payments.” However, the union leader could not say what amount would come from interest if he is successful. “That depends on what the court awards.”