Finance Ministry to handle cost of CAL’s severance

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Finance Ministry to handle cost of CAL’s severance

Finance Minister, Colm Imbert, has revealed that taxpayers will be bearing the cost of severance for the 450 staff members of Caribbean Airlines, who will soon be retrenched.

Imbert made the announcement in the Senate on Tuesday, as he explained that CAL does not have the required finances.

According to Mr Imbert, the Airline is at the start of consultation in relation to the proposed reduction in staff and is finalizing the exact number of personnel to be affected.

He says it is also putting support systems in place including counselling, outplacement services, transition training for career guidance and a compensation package.

The cost of compensation is estimated at $110 million, however Mr Imbert says this is subject to finalization.

According to CAL release on Monday, 450 workers may be retrenched, as it looks to reduce the number of jets in its fleet over the course of 2021, and adjust its route network.

Regarding the fleet reduction, Mr Imbert told the Senate that the jet fleet will be reduced to eight jet aircraft, and the turboprop fleet will be cut to five ATRs.