PORT OF SPAIN, CMC:
TRADE UNIONS representing workers at the cash-strapped national airline BWIA on Thursday warned that they were prepared to go before the Industrial Court here to prevent the airline from unilaterally cutting back on members' salaries.
The airline has indicated it would be cutting back on salaries by as much as by 20 per cent.
However, President of the Superintendents Association, Theo Oliver, told a news conference that under the collective bargaining agreement with the company, management must "consult and agree" with unions before any changes are made.
The union also joined the Communication and Transport Workers Union (CATTU) in reiterating calls for the resignation of BWIA's chief executive officer Conrad Aleong, while insisting that mismanagement was behind the airline's financial problems.
With the airline yet to settle outstanding severance payments to 617 workers who were sent home in January, CATTU President Jagdeo Jagroop questioned the move by the airline to institute salary cuts at this time.
"Are you saying that workers have to dip into their pockets to help pay severance?" he asked.
Speaking to reporters at the end of the weekly cabinet meeting on Thursday afternoon, Prime Minister Patrick Manning also reiterated his government's position on its offer of financial assistance to BWIA.
SACRED COWS
"Let me make it clear, there are no sacred cows. We have said to BWIA, TT$116 million dollars (US$19.46 million dollars) would be available to you under certain conditions. If you meet the conditions, you get the money," he said.
He also noted that the other option facing the airline was insolvency, if it did not want to meet the conditions attached to government's financial package.
"They have options. They can go into liquidation if they can't bring expenditure in line with revenues. If they are insolvent they can go into liquidation. We said to BWIA this is an IMF style arrangement," Manning said.
Public Administration Minister Dr. Lenny Saith said the conditions called for increased production by flight staff, a review and revision of executive compensation contracts and all other salaries of employees, as well as a review and revision of the airline's policy on free and rebated tickets to staff.
Government, which currently holds a 33 per cent stake in the airline, also wants the board of BWIA to seek to get from private sector shareholders, commitments as to their own contribution to the airline.
Saith said the board would also be required to carry out a review of the current management team structure of BWIA "in the shortest possible time", while government undertakes its own internal adjustments as a result of the new financial package to BWIA.
