The Federated Airlines Staff Association says it is considering its options and working closely with the Fiji Trades Union Congress on the best way forward for the association after 285 Air Terminal Services Fiji Limited workers had their contracts terminated yesterday.
FASA President Semisi Turagabaleti says this is all he can say at this point.
He says they are communicating with the affected workers through social media groups on their progress.
Turagabaleti says all he can ask of the workers at this stage is for them to continue to support each other and remain resolute in the course of action that the association is going to take.
Turagabaleti says discussions with the management of Air Terminal Services Fiji Limited have been ongoing since the COVID-19 Pandemic started and they have been trying to map a way forward for the company and the workers.
He says during their meetings with management there was no indication whatsoever of workers contracts being terminated.
Turagabaleti adds that they were not given that information beforehand so that they could make proposals and come to the table for mutual agreement because their collective agreement basically states that the company needs to consult the association or the union, for them to discuss and mutually agree on any changes to workers remuneration.
He says this did not happen at all.
However, Turagabaleti says they have been following the collective agreement regarding the 55 plus retirees and also those who are over 50-years-old as they had discussed that there are avenues in the collective agreement for remunerating these workers.
He says redundancy packages also exist in the collective agreement if the company had decided to terminate workers' contracts because of the current crisis. Turagabaleti says they brought this to the company but they were very selective on which clauses they were going to use.
He says at most meetings they would have an agenda for the meeting documented and that has been ongoing and termination was never on the agenda.
Turagabaleti says during the meeting on Thursday, the management team did a verbal presentation and after the presentation, the association executives asked for time to go back and discuss and come back to the table with their proposals.
He says in the initial discussion in the first few weeks, they had agreed that no one should lose their job and at the end of the crisis workers would be brought back and help get the company back on its feet.
Turagabaleti says now that the workers' contracts have been terminated, what the company will do is put out vacancies and re-hire people on different contracts.
He says some contracts would be similar to casual workers, where one comes in on a day, sign in and sign off, and get paid for that day only.
Turagabaleti says this is something that is unfavourable and the union does not agree with it because there is no certainty in those types of contracts.
He says the atmosphere of the meeting was not good enough to have a proper dialogue and that is why they left the meeting.
Turagabaleti says it was towards the end of the meeting anyways and they did not see the need of concluding the meeting with handshakes because the workers' contracts were still getting terminated.
The Fijian government holds 51% of shares in Air Terminal Services Fiji Limited.
The ATS Employee Trust holds 49% of ATS shares.
Air Terminal Services says it terminated the employment contracts of 285 workers as a direct result of the COVID-19 pandemic.
ATS says it has experienced a drastic 95% plus reduction in business and there is significant uncertainty around the return of commercial flights at Nadi International Airport.
Company CEO, Hare Mani says ATS notes that the termination of the contracts was a very difficult decision to make, and one only made after exhausting all other options.
Mani says in implementing the termination, the company chose not to simply give notice, as per the employment contract, rather to make payment in lieu of notice.
He says over 40 percent of the workforce had already exhausted paid leave provisions and were on Leave Without Pay.
Mani says employees received 2 weeks of wages they would not otherwise have been entitled to.
He says further to this the Company paid a 10% loading on all accumulated annual and long service leave as per their contract.
The CEO says ATS will proceed with further terminations, however, is careful to ensure enough time was provided to those employees who may wish to apply for their contractual provision of Voluntary Early Retirement with substantial financial benefits.
The Company has already processed Voluntary Early Retirement for 30 employees to date.
Mani says they consulted with the Federated Airlines Staff Association yesterday and emphasised the goal of achieving a mutually beneficial outcome when addressing termination of contracts.
He says the meeting eventually ended with the FASA officials walking out without exploring this option.
Mani says the Company empathises with workers they represent, as it is of the view that employees have missed out on an opportunity to cease employment on terms over and above minimum entitlements.
He says with many of ATS employees already at home on paid on unpaid leave, there may be uncertainty regarding their employment status.
Mani says individuals should not hesitate to contact the HR office to clarify this.
The ATS CEO says earlier this month ATS had implemented retirement as per the respective article of the employment contract for 22 employees who were over the age of 55 years.
These employees were also assisted by paying in lieu of notice where this was not required.
Mani says as business picks up and as the opportunity presents itself, the Company will revisit its position.
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