Aero redundancy payment covers 95% workers since 2017

Sade Williams/Business a.m.

A redundancy payment plan being implemented by Aero Contractors since 2017 has so far covered 95 percent of workers, the airline’s management said in an explanatory statement on how it is settling the benefits of the affected workers.

The airline said it paid at least 95 percent of the redundant staff and appealed for patience as it works on paying the remaining part of the redundancy money.

The company was reacting to the concerns by National Association of Aircraft Pilots and Engineers (NAAPE) officials, protesting the failure of the company to pay off some of its workers who have been separated from the company for seven years; since March 2017.

A statement by the company on the matter, clarified that the company has not neglected its responsibility to settle outstanding redundancy benefits,  adding that Aero Contractors has diligently worked to address and resolve the issue.

“A few clarifications need to be made to put things in context and clarify issues. The company has successfully disbursed redundancy payments to at least 95% of affected staff. Admittedly, we still have outstanding financial commitment to a few affected staff. However, plans are under way to defray these and we have been engaging with affected staff to carry them along in all the company has been doing and going through.

“For the avoidance of doubt out of a total number of 237 staff affected by the redundancy, 225 have been paid off representing 94.94% of those affected.

“Nonetheless, we still have a total of 12 outstanding staff that are yet to be paid. This represents about 5.06% of the original population. Of this number 3 are members of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN)and 9 belong to NAAPE. Efforts are being made in the near future to pay the outstanding to the staff,” the airline said.

While empathising with the discomfort and strain this experience has put on the affected individuals as well as the whole company, the airline asked for more understanding as it works towards resolving all outstanding issues.

“We believe it is important to situate the whole experience within the operational context that Aero Contractors in particular and the industry in general has had to operate over the period in question.

“The operating environment within the aviation industry has been overwhelmingly challenging, with the company enduring significant challenges including two instances of cessation of operations for extended periods. The first was in August 31, 2016 to late December 2016 and the second was in July 20th, 2022 to December 4th, 2022. After about a 5 months shut down we have assiduously worked on defraying outstanding payments and commitments, not only to affected personnel but to ensure the viability of operations and to continue as a going concern.

“This is in spite of additional challenges posed by escalating cost of operations, particularly the substantial cost of the fuel component of our operational costs which has severely constrained our finances and affecting allocations to various expense headings, including terminal benefits owed to former employees.

“Be that as it may, as the figures show, management has been relentless in ensuring a vast majority of affected persons are settled. We assure you that Aero Contractors remains committed to fulfilling its obligations to all stakeholders. We continue to actively work to resolve all outstanding issues and ensure that affected individuals receive their rightful entitlements,” it added.

Since the return of the company in December 2022 to operations, the company said it ensured a call back of all employees and reintegrated them to be in a position to contribute to building the organisation they love back to the stature for which it has always been known.

“We appreciate your understanding. Our commitment to operating with integrity and accountability remains unwavering, and Aero Contractors remains steadfast in its dedication to the well-being of its employees, past and present.”