Tweet
Big pay day - US$24 million for Air J workers tomorrow
1,000 to be rehired by Caribbean Airlines
BY ALICIA DUNKLEY Observer staff reporter dunkleya@jamaicaobserver.com
Thursday, April 29, 2010
ALL 1,500 members of staff of national carrier Air Jamaica whose jobs have been made redundant will tomorrow receive their severance pay, totalling US$24 million (app J$2.4 billion), airline officials promised yesterday.
The workers, some of whom served the national carrier for more than two decades, will receive their final pay cheque from the airline as the transition process for the divestment of the operations of the troubled airline into the hands of Trinidad and Tobago's carrier, Caribbean Airlines, takes effect on Saturday.
Director of Caribbean Airlines Shafeek Sultan-Kahn (left) fields questions during yesterday’s press conference to discuss the terms of the divestment of the national carrier, Air Jamaica, to Caribbean Airlines at Air Jamaica’s Harbour Street headquarters in downtown Kingston. At centre is the chairman of Air Jamaica, Dennis Lalor, and at right is CEO of Caribbean Airlines Ian Brunton. (Photo: Joseph Wellington)
Director of Caribbean Airlines Shafeek Sultan-Kahn (left) fields questions during yesterday’s press conference to discuss the terms of the divestment of the national carrier, Air Jamaica, to Caribbean Airlines at Air Jamaica’s Harbour Street headquarters in downtown Kingston. At centre is the chairman of Air Jamaica, Dennis Lalor, and at right is CEO of Caribbean Airlines Ian Brunton. (Photo: Joseph Wellington)
1/1 
Air Jamaica chairman Dennis Lalor said "approximately 1,000 of the 1,500 staff complement of the entity will be rehired by Caribbean Airlines".
"We have the assurance of the Government that the redundancy payments to all the persons who are being made redundant will be made on Friday, along with their letters of termination," Lalor told journalists at a press conference yesterday at Air Jamaica's head office in downtown Kingston.
The Air Jamaica chairman said the Government has also pledged to honour all statutory payments.
"Arrangements have been made to take care of those payments and therefore there should be no disruption economically to anybody who is being made redundant," he said, noting that all US$250 million of the Government's legacy costs, including debts, would be met.
The Government, in a process fraught with misses, began the trek in March 2008 to rid itself of the operations of Air Jamaica, which wracked up a deficit of US$1.54 billion in its 42-year operation.
Air Jamaica employees, led by their union representatives, have for months been up in arms over their redundancy benefits, as well as possible employment with Caribbean Airlines.
In the meantime, Lalor made it clear yesterday that there would be no disruption of service on Air Jamaica's routes when Caribbean Airlines takes over.
"All the tickets issued to passengers by Air Jamaica will be honoured," he said, pointing out that after six to 12 months Caribbean Airlines will be fully in charge of flying Air Jamaica's routes to and from the island.
Lalor also told reporters that while the full financial responsibility of Air Jamaica would be assumed by Caribbean Airlines, the Jamaican Government would remain the owner of all of the airline's other assets, including its real estate.
Yesterday, Director of Caribbean Airlines Shafeek Sultan-Kahn, in responding to the angst of the Air Jamaica workers and their unions, said their caution was not without reason.
"We have done our due diligence... we have been criticised of not meeting with the unions but it would be premature, presumptuous of us to make any representations with unions for one simple reason, we have no workers as yet. Air Jamaica is still the employer until the 30th," Sultan-Kahn said.
"We are in the process of making offers of employment; that process for some 1,000 workers is going to go on today and tomorrow and some workers will be free to accept or reject our offer.
"Where we are now is the offers of employment on or before Friday we will see how many persons have accepted; if we do have vacancies our plan is to first come to Air Jamaica's former employees, those who were laid off before," he added.
Sultan-Kahn said the emphasis would be on a "lean organisational structure", as he responded to questions about the apparent 'top-heavy' structure at Air Jamaica.
"What we hope to do is have an integrated airline on or before a year. All the management is not coming over. Lean, but hopefully not mean," he said.
Meanwhile, Air Jamaica's officials said the Trinidadian carrier has emerged as one of the leading airlines in the Caribbean, in terms of operational performance. They said the combination of Caribbean Airlines' strong expertise in airlines operation and Air Jamaica's strength, in particular in the areas of marketing and online sales, would help to create a very solid Jamaican airline operation.
Arguing that Caribbean Airlines has adequate financial strength to sustain their commitment to Jamaica, the carrier's management noted that the Government of Trinidad and Tobago has agreed to increase Caribbean Airlines' capital by US$50 million, providing more than adequate comfort to the divestment committee that adequate funding will be available to the project.
http://www.jamaicaobserver.com/news/...e-paid_7563313
1,000 to be rehired by Caribbean Airlines
BY ALICIA DUNKLEY Observer staff reporter dunkleya@jamaicaobserver.com
Thursday, April 29, 2010
ALL 1,500 members of staff of national carrier Air Jamaica whose jobs have been made redundant will tomorrow receive their severance pay, totalling US$24 million (app J$2.4 billion), airline officials promised yesterday.
The workers, some of whom served the national carrier for more than two decades, will receive their final pay cheque from the airline as the transition process for the divestment of the operations of the troubled airline into the hands of Trinidad and Tobago's carrier, Caribbean Airlines, takes effect on Saturday.
Director of Caribbean Airlines Shafeek Sultan-Kahn (left) fields questions during yesterday’s press conference to discuss the terms of the divestment of the national carrier, Air Jamaica, to Caribbean Airlines at Air Jamaica’s Harbour Street headquarters in downtown Kingston. At centre is the chairman of Air Jamaica, Dennis Lalor, and at right is CEO of Caribbean Airlines Ian Brunton. (Photo: Joseph Wellington)
Director of Caribbean Airlines Shafeek Sultan-Kahn (left) fields questions during yesterday’s press conference to discuss the terms of the divestment of the national carrier, Air Jamaica, to Caribbean Airlines at Air Jamaica’s Harbour Street headquarters in downtown Kingston. At centre is the chairman of Air Jamaica, Dennis Lalor, and at right is CEO of Caribbean Airlines Ian Brunton. (Photo: Joseph Wellington) 1/1 "We have the assurance of the Government that the redundancy payments to all the persons who are being made redundant will be made on Friday, along with their letters of termination," Lalor told journalists at a press conference yesterday at Air Jamaica's head office in downtown Kingston.
The Air Jamaica chairman said the Government has also pledged to honour all statutory payments.
"Arrangements have been made to take care of those payments and therefore there should be no disruption economically to anybody who is being made redundant," he said, noting that all US$250 million of the Government's legacy costs, including debts, would be met.
The Government, in a process fraught with misses, began the trek in March 2008 to rid itself of the operations of Air Jamaica, which wracked up a deficit of US$1.54 billion in its 42-year operation.
Air Jamaica employees, led by their union representatives, have for months been up in arms over their redundancy benefits, as well as possible employment with Caribbean Airlines.
In the meantime, Lalor made it clear yesterday that there would be no disruption of service on Air Jamaica's routes when Caribbean Airlines takes over.
"All the tickets issued to passengers by Air Jamaica will be honoured," he said, pointing out that after six to 12 months Caribbean Airlines will be fully in charge of flying Air Jamaica's routes to and from the island.
Lalor also told reporters that while the full financial responsibility of Air Jamaica would be assumed by Caribbean Airlines, the Jamaican Government would remain the owner of all of the airline's other assets, including its real estate.
Yesterday, Director of Caribbean Airlines Shafeek Sultan-Kahn, in responding to the angst of the Air Jamaica workers and their unions, said their caution was not without reason.
"We have done our due diligence... we have been criticised of not meeting with the unions but it would be premature, presumptuous of us to make any representations with unions for one simple reason, we have no workers as yet. Air Jamaica is still the employer until the 30th," Sultan-Kahn said.
"We are in the process of making offers of employment; that process for some 1,000 workers is going to go on today and tomorrow and some workers will be free to accept or reject our offer.
"Where we are now is the offers of employment on or before Friday we will see how many persons have accepted; if we do have vacancies our plan is to first come to Air Jamaica's former employees, those who were laid off before," he added.
Sultan-Kahn said the emphasis would be on a "lean organisational structure", as he responded to questions about the apparent 'top-heavy' structure at Air Jamaica.
"What we hope to do is have an integrated airline on or before a year. All the management is not coming over. Lean, but hopefully not mean," he said.
Meanwhile, Air Jamaica's officials said the Trinidadian carrier has emerged as one of the leading airlines in the Caribbean, in terms of operational performance. They said the combination of Caribbean Airlines' strong expertise in airlines operation and Air Jamaica's strength, in particular in the areas of marketing and online sales, would help to create a very solid Jamaican airline operation.
Arguing that Caribbean Airlines has adequate financial strength to sustain their commitment to Jamaica, the carrier's management noted that the Government of Trinidad and Tobago has agreed to increase Caribbean Airlines' capital by US$50 million, providing more than adequate comfort to the divestment committee that adequate funding will be available to the project.
http://www.jamaicaobserver.com/news/...e-paid_7563313