AIRPORT–Princess Juliana International Airport staff no longer have to worry that their January salary will not be paid out, now that government has transferred US $5 million to cover salaries and other recurring expenses. However, they will have to wait for their annual bonuses.
The 2018 bonus will be paid in spite of the company’s dire financial situation, but at a later time.
The some 270 staffers were informed via a January 24 memo from newly-appointed Chief Executive Officer (CEO) Brian Mingo that 50 per cent of the 2018 bonus was to have been paid out at the end of January, but this would be delayed.
“Unfortunately, due to our financial constraints, we are unable to pay 50 per cent of the 2018 bonus at this time,” Mingo wrote. “Once funds become available, you will be informed in a timely manner as to what part of our obligation we can commit to.” He apologised for “any inconvenience” the delayed bonus pay-out caused for staff.
The airport has been in dire straits since Hurricane Irma pummelled the country on September 6, 2017, wrecking the airport terminal. The fallout with insurance coverage (since resolved) and other challenges have drained the airport’s coffers, leaving it unable to meet payroll for January if a bridge loan was not acquired quickly.
Government stepped in with US $5 million, the first tranche of a $15 million bridge loan. That first tranche will be repaid to government when the bridge loan is transferred via the $100 million grant/loan from the Dutch-financed, World Bank-administrated recovery trust fund, and the European Investment Bank (EIB).
Commenting on the airport’s ability to pay salaries, airport shareholder’s representative Tourism and Transportation Minister Stuart Johnson said in a press statement: “The “livelihood of the over 270 employees of the airport is my primary concern, as I know not only do they need to meet their monthly obligations, but their salary is essential to satisfy the basic needs of their families.”
Johnson’s statement was not related to the bonus memo. It was issued to praise Finance Minister Perry Geerlings for his efforts to get the first tranche of the bridge loan transferred to the airport.
Johnson had insisted in 2018 that he was not willing to support the $100 million grant/loan option without seeing its terms and conditions and without knowing for sure that it was not a disguised hostile takeover by the Dutch Government.
According to his press statement, only the EIB loan terms and conditions are known. “It is good to note that the airport is still ultimately the responsible entity for finding loans and this is still an ongoing process,” Johnson said.
The $50 million grant part of the grant/loan combo is to come from the recovery trust fund. The Dutch government has already publicly indicated that it wants a temporary position each on the airport supervisory and management boards.
Source: The Daily Herald https://www.thedailyherald.sx/islands/84841-airport-workers-to-still-get-bonus-but-later
View comments
Hide comments