The long-running dispute over severance payments owed to former LIAT employees may soon move to the courts, as the Antigua and Barbuda Workers’ Union finalizes a legal strategy against the government of Antigua and Barbuda, according to sources familiar with the matter.

The union maintains that statutory severance remains outstanding since LIAT ceased operations in 2020 during the COVID-19 pandemic, leaving hundreds of workers across the region without jobs or severance pay. As LIAT’s largest shareholder, Antigua and Barbuda became the focal point of workers’ claims.

In response, the government issued what it described as a compassionate payment, providing a 10-year bond valued at EC$16.72 million at a 2 percent interest rate, representing Antigua and Barbuda’s 32 percent ownership share of severance owed to 405 former employees. Workers have since received two payments under the arrangement.

The ABWU has welcomed the payments as interim relief but insists they do not replace severance owed under labor laws and should not be treated as a settlement. The union has advised members that accepting the payments does not extinguish their legal claims.

Prime Minister Gaston Browne has defended the government’s position, arguing that LIAT was a regional entity and that Antigua and Barbuda should not bear a disproportionate share of the airline’s liabilities. He has also warned that paying full severance could set a costly precedent if other shareholder territories fail to meet their obligations.

With negotiations stalled and more than four years having passed since LIAT’s collapse, the union now appears prepared to test the matter in court, shifting a politically sensitive dispute into a legal arena.