Workers at defunct carrier said to still be owed 50% of severance packages
Former employees of Bahrain Air have threatened to take legal action against the defunct carrier’s shareholders over alleged outstanding severance package payments, it has been reported.
The shareholders of Bahrain Air, which was liquidated earlier this year after struggling amid the Arab Spring unrest and regional competition, are said to owe 345 ex workers payments worth BD1.1m ($2.9m), Gulf Daily News said.
Union leaders had struck a deal that would see former staff get 24 days worth of pay for every year they worked at the airline, plus other benefits.
According to the Bahrain Air Trade Union (BATU), employees were paid 40 percent of their entitlement in March, with a subsequent 10 percent a month later. The union said it is now willing pursue legal action to secure the remaining 50 percent.
"At the moment the (airline) shareholders are not willing to pay," BATU chairman Abdull Raoof told Gulf Daily News. "We will adopt a much more aggressive plan of action and are giving shareholders until the end of this month to pay in full, Even if we get another partial payment, we are going to continue with legal action and won't accept anything less than full payment."
Legal action against the airline has already been initiated by 34 ex employees of the airline, the newspaper said.