Trinidad taxpayers to foot TT$110 million bill for CAL retrenchment

(Trinidad Guardian) The State will finance the retrenchment of 25 per cent of staff at Caribbean Airlines (CAL) at an estimated cost of TT$110 million. This was revealed by Finance Minister Colm Imbert in the Senate on Tuesday after he was asked by Opposition Senator Wade Mark how the severance packages for the 450 employees would be financed.

On Monday, the airline announced it had suffered over TT$172 million in losses for the first quarter of 2021 and, in an effort to ensure a sustainable business model going forward, it would be retrenching up to 450 employees and cutting its fleet and routes.

Yesterday, Imbert said the airline was at the beginning of the consultation process for staff reduction and is finalising the exact number of personnel to be sent home.

“Caribbean Airlines does not have the required finances for the severance payments and therefore the severance payments will be financed by the Ministry of Finance,” Imbert said.

Asked by Mark the value of the severance packages, Imbert responded, “The estimate given to the Ministry of Finance at this time, which is subject to finalisation, is in the vicinity of $110 million.”

Mark also asked how the proposed retrenchment would affect CAL’s future operations.

Imbert said the airline had informed his ministry that passenger demands on its routes are forecasted to decrease in the short to medium term by both the International Air Transport Association (IATA) and CAL’s consultant, Amadeus.