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January 8, 2008 |
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AIR JAMAICA: Shirley Williams Denies Temporary Workers' Layoff Air Jamaica airline's board of director's executive chairperson Shirley Williams told Radio Jamaica that the airline hasn't dismissed temporary workers, contradicting a report by The Jamaica Gleaner. According to a weekend report by The Gleaner, Air Jamaica began laying off temporary workers and is "making up two-week rosters" for its regular workers. "It is customary for the airline to compile six-week work schedules for its staff." The Gleaner notes that Air Jamaica's board of directors has also recommended that 30% of the workers "be made redundant." The board is allegedly planning another layoff. Air Jamaica's managers told workers at the Kingston and Montego Bay airports that there was uncertainty as to who would the airline keep within the next two weeks, The Gleaner says, citing a source. Granville Valentine, vice president of the National Workers' Union representing the employees, commented to The Gleaner, "I was told (last week) that the airline would not take such a decision until it had done its due diligence." Mr. Valentine told The Gleaner that when worker dismissal takes effect, it must begin at the management level as Air Jamaica is "top-heavy." Radio Jamaica notes that the National Workers is threatening to shut down Air Jamaica's operations. The National Workers' head Vincent Morrison told Radio Jamaica that the union has not been informed of any plans to reduce Air Jamaica staff. Any worker dismissal breaches the Public Sector Memorandum of Understanding. Ms. Williams challenged The Gleaner's report that the airline would be dismissing staff. She told Radio Jamaica the information was inaccurate as it related to a "planned decision to cut staff at a recent retreat of the board." "At the retreat, there was no discussion of any 30% (staff) reduction," Ms. Williams commented to The Gleaner. Air Jamaica is yet restructuring operations to cut losses. This does not mean the airline is laying off workers, Radio Jamaica says, citing Ms. Williams. The airline's Industrial Relations Committee chairperson Noel Hylton would be meeting with the unions representing employees for further discussion and consultation as promised. Ms. Williams explained to The Gleaner that the temporary workers who were sent home had reached the end of their contracts, as they were employed "for the purpose of the peak period to cover the period up until Dec. 31." "In terms of the percentage of cuts, I am not getting into that at this time. There is a process to follow. It involves also going though the ministry, as there is an MoU [memorandum of understanding] in place," Ms. Williams told The Gleaner. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/ -- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to on Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica Limited's guaranteed senior unsecured notes. |
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