ST. JOHN’S: An application filed by the Leeward Islands Airline Pilots Association (LIALPA) against regional airline LIAT for an injunction to freeze funds held in an escrow account in the LIAT Pension Fund at Antigua Commercial Bank (ACB) was dismissed last week.
The pilots have been asking for their portion of the funds to be separated and placed under the control of trustees, who will keep the money in a trust until a Pilots Pension Plan was established.
In 2009, LIAT’s Board of Directors reportedly instructed the management of the airline to stop paying the staff Pension Fund into the cash strapped CLICO, and start paying it into an escrow account at the ACB, under the Staff Pension Escrow Account.
Up to March of this year, the sum of the account was approximately 44 million dollars.
The grounds upon which the application was filed seeks to secure the monies intended for the company’s employee Pension Scheme and the deposits of both employer and employees to the said pension scheme.
The applicants have accused respondent LIAT, of holding the pension contribution of the pilots and other employees in ways that the association considers unsatisfactory and damaging to the future well-being of its members.
In a release following the dismissal of the injunction, LIAT stated its “desire has always been to work with its employees and their representatives in order to establish a pension plan for the benefit of all. That desire remains unchanged”.