St John’s, Antigua,August 2nd, 2011 - The Leeward Islands Airline Pilots Association (LIALPA) has noted with grave concern and regret, recent public statements made by Communications Manager Desmond Brown regarding new Pension Plan arrangements for employees.
LIALPA is appalled and deeply disappointed that Mr Brown continues to mislead the public with statements filled with inaccuracies and at times blatant dishonesty. We were left with no other choice but to refute his statements and tell the Caribbean people the unvarnished truth, inclusive of all facts surrounding LIAT’s Pension Plan that Mr Brown either unknowingly or deliberately omitted.
1. Contrary to Brown’s statement, all employees, including pilots, did NOT receive “all contributions paid into the fund in a final payment.” The facts are that in 1997, the Trustees closed the Fund because LIAT was deducting monies from employee salaries and NOT paying it into the Fund.
The Trustees were then forced to pay the employees since there was 3.3 million dollar shortfall. In addition to this shortfall, the Trustees kept a reserve amount of monies for administrative purposes. This reserve fund has been undergoing drastic depletion, due to fees being paid to trustees, even though the fund has been closed since 1997. We will leave that for Mr Brown and his management team to explain.
2. LIAT did not willingly open a New Pension Fund but was rather forced to do so by the Court. After the fund’s closure in 1997, the Company unilaterally decided that it will not deduct the 5% from the salaries, neither will it pay its 7% contribution. But in the pilots’ contractual agreement, it is stated that the company SHALL maintain a Pension Fund for the pilots, so LIALAPA took LIAT to court immediately.
The Court then ordered that both the 5% employees’ and 7% employers’ contributions belonged to the employee and also ordered a 12% interest to be paid on the owing 7% that LIAT had stopped paying after the Fund’s closure. Why did Mr Browne fail to inform the public of this development and this unnecessary expenditure incurred?
3. We wish to categorically state that NO new Pension Plan commenced in 2006. At that time, a proposal for a fund was rejected by the employees. We challenge Mr Brown to produce this new 2006 Pension Plan that he is referring to. Even the Arbitration Panel in its 30th June 2010 award stated:
“There is no such plan in place.” The 30th June 2010 award also stated clearly – “we hold that within 12 months, the company in consultation with the pilots shall take all steps necessary to establish a pension scheme for the pilots.” Those 12 months expired on 30th June 2011 and to date, LIAT continues to ignore the Tribunal Award. On this matter, Management’s dishonesty is on record, as they have claimed to have implemented ALL awards and that no award could be modified except by an Order of the Court.
4. The first and only consultation on a new Pension Plan took place on 26th July 2011. LIALPA knows of NO other consultation that has taken place over the past several years. All that has happened prior to the 26th July 2011, is the dissemination of information by Mr Brown on 24th May and 21st June 20011. For five (5) years, from 2006 to 2011: One (1) consultation and two (2) pieces of information disseminated. This calls into question Management’s competence and Mr Brown’s communications capabilities.
5. Mr Brown claims that LIALPA’s Chairman may have an inadequate understanding of the issues dealt with at the 26th July 2011 meeting and urged pilots to consult with management for clarification. We will now outline LIALPA’s understanding of the meeting and challenge Mr Brown to come publicly and dispute our understanding.
At the meeting, a Pension Proposal was discussed and here is what was put forward by management: a) The Company will be the sole administrator of the fund. b) The Company will appoint all trustees and members of a pension committee. c) The Company can at will dismiss any trustee. d) Trustees must obey all instructions of the Company Administrator. e) The Company will control and decide on all portfolio investments. f) All charges for fund administration will be deducted from the employees’allocations. LIAPA will
NOT accept this one-sided, unfair and undemocratic proposal.
In view of the foregoing, LIALPA calls on Mr Brown to do the correct and appropriate thing which is to apologize to the Justice LeRoy Inniss Arbitration tribunal for insinuating they were dishonest in June 2010 when they said that a Pension Plan was not in place, since Mr Brown says there was one since 2006.
Furthermore, we call upon him to retract his false statement that pilots received ALL contributions when the Provident Fund closed in 1997.LIALPA hopes that Mr Brown would cease and desist from his modus operandi of making inaccurate and blatantly dishonest statements and giving misleading information to the general public.
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