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January 9, 2008 |
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AIR JAMAICA: Two Unions Hold Protest Against Airline The Bustamante Industrial Trade Union has joined the National Workers Union in demonstrations against Air Jamaica, Radio Jamaica reports. Radio Jamaica relates that the protests were due to the handling of negotiations about job reductions at Air Jamaica. As reported in the Troubled Company Reporter-Latin America on Jan. 8, 2008, the Air Jamaica board of director's executive chairperson Shirley Williams denied the dismissal of temporary workers at the airline. Air Jamaica reportedly 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." Air Jamaica's board of directors allegedly recommended that 30% of the workers "be made redundant." The board was reportedly planning another layoff. The National Workers' vice president Vincent Morrison accused Air Jamaica of confusing workers by sending mixed signals regarding the airline's restructuring, Radio Jamaica notes. Air Jamaica should tell the unions the true position and guarantee that they communicate the same to the managers, Radio Jamaica says, citing Mr. Morrison. The situation has confused and disquieted the employees, who are now "demoralized and de- motivated." The Bustamante Industrial's president general Kavon Gayle told Radio Jamaica that the unions have been advised of ongoing restructuring at Air Jamaica, but have not been told of the result of the restructuring. If worker reduction is imminent, that would be an irresponsible act on Air Jamaica's part. A business plan must first be presented to the union about the future of the airline. If staff reduction is part of that plan, there must be some justification presented to the union. 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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