Senior Reporter
derek.achong@guardian.co.tt
Eight years after the marine contracting company they worked for was placed in receivership, 34 former employees have received their salary arrears.
The former employees of KGC Company Limited received their cheques during a ceremony at the Seamen and Waterfront Workers Trade Union (SWWTU) Hall at Wrightson Road in Port-of-Spain yesterday morning.
In 2017, KGC, which operated two tugboats and a crane barge, was placed into receivership by Republic Bank over a significant unpaid debt.
The bank engaged Ernst and Young to oversee the receivership process.
KGC challenged a move to sell its assets to help clear its debt but suffered successive legal defeats, including in a final appeal before the United Kingdom-based Privy Council.
While the litigation was being pursued, many of the company’s crew members continued to operate the company’s assets on the receiver’s behalf.
KGC’s marine assets were eventually sold in 2021, but the employees were not paid the salaries they were owed when the receivership process was initiated.
The SWWTU, with the assistance of the International Workers Federation Trade Union (ITF) and its attorneys Nyree Alfonso and Asif Hosein-Shah, intervened on the workers’ behalf.
They successfully arrested the three vessels, which were already in the possession of third parties.
They then pursued a lawsuit over the outstanding payments.
In the case, the SWWTU sought to rely on a maritime legal principle under which the crew of a vessel is to be compensated first in receivership situations as opposed to the secured creditors in normal companies.
The affected workers were overjoyed as they received their cheques yesterday.
“I thought that that money was dead and we would never get it.
“Thank God, I was wrong,” one worker said, as he and his colleagues thanked the union and Alfonso for their assistance.
In a brief interview, SWWTU president Michael Annisette said he was pleased with the outcome of the case despite its protracted nature.
He also noted that the union pursued it on behalf of the workers, although they were not members, based on its role as the regional ITF representative.
“The SWWTU is the regional representative on behalf of seafarers, so if there is any issue involving seafarers, we are duty-bound to make representations on their behalf,” Annisette said.
“I’m hoping that this will lead workers to understand the importance of having union representation when you are involved in a matter, because they lost and gave up faith after all these years, but today they are all happy,” he added.
He also suggested that the Government should consider making legislative changes to introduce the maritime legal principle for normal companies to give more protection to workers, who he described as the most vulnerable in receivership situations.
“We are saying in the SWWTU that the company law must change to give priority to workers’ salaries,” he said.