Air Terminal Services (ATS) is set to compensate 398 workers impacted by the COVID-19 pandemic with a total payout exceeding $6 million. This compensation package will be entirely funded by ATS itself, with no contributions from the government budget, as emphasized by Deputy Prime Minister and Minister of Finance Professor Biman Prasad.
Professor Prasad framed the payment as a gesture of goodwill aimed at providing closure rather than merely serving as financial compensation. He stated, “This payout is a continuation of what government had committed to do to bring back not only the rights of our workers but also to provide justice where we felt that they deserved.”
The compensation, scheduled for distribution on May 19, will include approximately $4.3 million for 176 reinstated employees, representing 1.5 years’ gross base pay. Additional funds will be allocated to contracted employees, retirees, and those deemed medically unfit, ensuring a wide-reaching support initiative addressing various categories of affected workers.
ATS’s financial recovery has been notable, with reported profits of $11 million in 2022 and $16 million in 2023, marking a strong turnaround from losses suffered during the pandemic years, which saw deficits of $2.77 million in 2020 and $4.23 million in 2021.
The government’s commitment to worker rights is further exemplified by ongoing discussions about working in partnership with unions and stakeholders. ATS has also demonstrated robust operational performance, maintaining a 98.9% on-time performance record and managing over 8,700 flights in 2024. This operational success is crucial as the aviation sector continues to recover from the pandemic’s impact.
The compassionate approach of ATS towards compensating its workers highlights a positive shift towards rebuilding employee confidence and restoring stability in the workforce, with the payment representing an acknowledgment of the hardships faced during the pandemic.
This initiative aligns with previous efforts, such as ATS’s distribution of a $2.47 million dividend to the government following its strong financial recovery, which further underscores the company’s vital role in the country’s economy and tourism sector. The compensation package is a hopeful sign of partnership and care within the workforce, emphasizing the importance of workers in sustaining economic growth.
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