A significant reparation of $6.082 million will be provided by the Government to 398 employees of Air Terminal Services (ATS) who faced job losses when the company halted its operations during the COVID-19 pandemic. This announcement was made by Deputy Prime Minister and Minister of Finance Professor Biman Prasad in Suva.
Professor Prasad highlighted the challenges faced by the airline industry globally during the pandemic, stating that many employees endured hardships, often struggling to provide for their families. He expressed that the Coalition Government, led by Prime Minister Sitiveni Rabuka, acknowledges these struggles and is committed to addressing the emotional and financial damages caused during that time.
The compensation package includes:
1. 1.5 years’ gross base pay for 176 reinstated employees.
2. An ex gratia payment of $5,000 for each of the four medically unfit employees.
3. An ex gratia payment of $5,000 for 61 retirees and voluntary early retirees.
4. Pro-rata ex gratia payments for contracted employees, including $8,000 for those terminated and rejoined before the end of 2021, and $6,000 for those rejoining afterward.
“This compensation is more than just a payout; it symbolizes reconciliation and respect,” Prof Prasad noted. He also pointed out that ATS had experienced substantial financial recovery, reporting profits of $11 million in 2022 and $16 million in 2023, rebounding from an accumulated loss of $7 million during the pandemic years.
The distribution of this compensation is scheduled for May 19, emphasizing the government’s commitment to restoring the dignity and well-being of affected workers. This initiative not only illustrates financial responsibility but also demonstrates a positive shift toward rebuilding trust within the workforce. The ATS’s financial recovery serves as a hopeful sign for the future of the aviation industry and worker welfare, reinforcing the role of employees in driving economic growth.
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