More than 150 former and current employees of Fiji’s Air Terminal Services (ATS), whose employment was terminated during the height of the COVID-19 pandemic, will receive a long-awaited compensation payout totalling over $6 million.
The total cost to ATS, which stands at $6,082,754, and the disbursal of which starts next week, includes:
- 1.5 years of gross base pay to 176 reinstated employees
- $5,000 ex gratia payments to four employees declared medically unfit
- $5,000 ex gratia payments to 61 retirees and voluntary early retirees
- Pro-rata ex gratia payments to 157 contracted employees:
- FJ$8,000 for those who rejoined before 31 December 2021
- FJ$6,000 for those who rejoined in 2022
Deputy Prime Minister and Minister for Finance Professor Biman Prasad announced the compensation in Suva this week, stating it was the right decision to make, even if it meant the government would receive a smaller dividend.
“This is going for a good cause. This is going towards rectifying some of the losses that the workers suffered, not of their making, but as a result of the circumstances in which they were in,” Professor Biman said. “This compensation is more than a payout — it is a gesture of reconciliation, of acknowledgement, and respect.
“It is our way of turning a page together.”
ATS — a state-owned company responsible for ground handling and inflight catering at Nadi International Airport — was among the hardest hit when Fiji closed its international borders in March 2020. With operations halted and the national airline grounded, the company suffered unprecedented financial losses: $2.77 million in 2020 and $4.23 million in 2021, totalling $7 million, the largest in its history.
“With no flights, there was no work,” Professor Biman said. “Thousands of lives were affected. Many families did not know where their next meal would come from.”
He acknowledged the “emotional and financial wounds” caused by the layoffs and praised the resilience of workers, both those who remained and those who returned.
The compensation fulfils a key condition of a Memorandum of Understanding signed in April 2023, which committed the company to reinstating and compensating affected workers once it had returned to profitability.
The company posted a strong financial turnaround, recording a $11 million profit in 2022, increasing to $16 million in 2023. In 2024, ATS handled 8,737 flights, an 8% increase from the previous year, and produced over 2.1 million inflight meals, up 7% year-on-year.
“At the time of the MOU, the company was still recording losses,” ATS Chairperson Shradha Sharma said. “We made small payouts then, but part of the deal was that we’ll look into this as we went along, as the company was recovering.
“So the timing of this payout is an announcement is mainly because in the last two years, the company has done significantly well, and we have recovered from those three years of losses. The timing of this announcement reflects that recovery. It wasn’t an easy decision — but it was the right one.”
She thanked the ATS management team and board for navigating a difficult period and ensuring the payout was made without compromising the company’s financial stability.
With an On-Time Performance rate of 98.9%, ATS is now looking ahead to further growth — including plans to develop a modern inflight catering centre and secure renewed leasing arrangements at its strategic location near Nadi International Airport.
