The Tribune

BAHAMASAIR has warned the trade union rep- resenting its line staff that it faces “stark financial realities”, having lost $8.5 mil- lion in income this financial year with the possibility of further setbacks to come.

The national flag carrier, in a December 7, 2015, letter to Nelerene Hard- ing, the Airport, Airline and Allied Workers Union (AAAWU), warned that its Havana flights were “under serious threat” due to the new US relationship with Cuba.

This potential revenue loss, the union warned, would follow the $6.9 mil-

lion cut in its annual subsidy from the Government, plus the end to its $1.6 million contract for repatriating il- legal immigrants to Haiti.

Selvin Basden, Bahamasair’s director of human re- sources, told Ms Harding: “The financial realities of our situation are stark.

“Our subvention from the Government was cut from $20.7 million to $14.8 million, creating a shortfall of $6.9 million for the cur- rent financial year.

“The loss of our repatriation charters to Haiti accounts for a further loss of $1.6 million, and our Havana flights are now under serious threat due to policy shifts towards Cuba by the United States government. These are the realities we must face.”

The letter to Ms Harding was released in the wake of the union’s decision to reject Bahamasair’s latest industrial agreement offer on December 9, and sub- sequently threaten strike action to coincide with the peak Christmas travel season - a move that could cripple the already cash- strapped national flag carrier.

Many would argue that the $6.9 million ‘cut’ to Bahamasair’s 2015-2016 Budget subsidy is not really income at all, given that it represents the continued taxpayer bailout - or financing - of a loss-making enterprise that has bled the Bahamas of more than $500 million since its creation.

However, Mr Basden’s letter argued that the air- line and the union were not far apart, and said Bahamasair accepted its proposal for the years 2013, 2014 and 2015 as set out in a letter to the minister of labour, Shane Gibson.

The differences are over the years ahead, 2016 and 2017, in what appears to be a five-year industrial agreement.

For 2016, Bahamasair is proposing one increment

be added to AAAWU line staff member salaries, with a further one to be performance based. When it comes to 2017, the airline is offering a lump sum and an- other performance-based increment.

“I assure you that if we are able to secure an agreement based on these two remaining years you have the commitment of the managing director [Henry Woods] that every effort will be made to ensure that all outstanding back pay is issued via cheque to all eligible staff on December 18, 2015,” Mr Basden wrote.

He promised that Bahamasair “would be prepared to sign an agreement immediately” if Ms Harding agreed to its December 7 terms.

Bahamasair, in a statement issued via the Government, said the back pay on offer totalled $820,000.

It added: “The mere fact that industrial action would even be threatened during this time of year is a deliberate attempt to disrupt the company’s operations and shake customer confidence during our peak season.

“When negotiations started 14 months ago, the AAAWU presented a proposal seeking 18 increments over a five-year period. When we, management and the union, came to the table as directed by the Deputy Prime Minister on Monday, December 7, we were two increments apart.

“During that meeting, the managing director gave ab- solute assurances that if an agreement was reached by December 9, all AAAWU staff would receive all of their back pay by cheque on December 18, as this would have been outside the normal pay cycle,” the airline said.

“In addition to this, management, seeking to find common ground, moved closer by conceding one additional increment. Therefore, when the meeting concluded we were only one increment apart – a fact that was confirmed by management in writing at the request of the president the very same day.”

Bahamasair said it was surprised to receive a letter rom Ms Harding on December 9, rejecting that offer, with the matter referred to its Board of Directors meeting scheduled for December 21, 2015.