Workers at new airport support services firm CI² are locked in a dispute over severance pay with former operator BAS-Serco.

Now the Labour Department has stepped in to mediate the dispute, which started after BAS-Serco lost the contract.

And Bermuda Public Services Union president Jason Hayward warned that Government may end up having to foot the bill for redundancy payments.

Mr Hayward said: “The BPSU considers the company’s actions to be unlawful.”

He added: “The terminations were by reasons of redundancy as defined in section 30 of the Employment Act 2000.

“BAS-Serco informed the employees that they will not be paid severance allowance upon termination and have not done so to date, despite the members having the right to severance pay under the section 23 and 30 of the Employment Act 2000.

“In addition, the company has also failed to supply the employees with certificates of termination which would state the reason for termination.”

Mr Hayward added: “The BPSU has also been informed that this conflict has arisen because the Bermuda Government may ultimately be responsible for the redundancy pay of the employees based on wording which is contained in the previous air, maintenance and operations service contract between BAS-Serco and the Bermuda Government.

“And in an effort by BAS-Serco to secure current contractual arrangements they are placing the Government’s interest and their own over the company’s former long-serving employees.”

BAS Group of Companies CEO Ian Cook could not be contacted last night. The dispute affects around 25 former BAS-Serco staff, with non-unionised employees understood to have sought legal advice on their position.Attempts to contact BAS-Serco yesterday were unsuccessful.

It was announced last October the CI² was to take over from BAS-Serco, which has provided support operations at the airport for 20 years, from the start of this month.

The Atlanta, Georgia, based firm, which already provides similar services in Puerto Rico and the US Virgin Islands, pledged to retain all 40 staff at present employed by BAS-Serco.

BAS-Serco provided air traffic control, ground electronics and the Bermuda Weather Service.

CI² also supplies air traffic control and weather observation to a total of 20 aircraft control towers in the US. When the contract was announced, CI² founder and president Andrella Kenner said that a “dedicated professional workforce” was already in place in Bermuda.

She added: “The company feels that professionals who have dedicated their careers as air traffic controllers, meteorologists, weather forecasters, ground electronic maintenance providers and airport maintenance service providers play an essential role in the airports past as well as its future.”

BAS Group, originally involved in the aircraft servicing business, has expanded to a group of ten companies.

It now provides services like facilities management to Hamilton office blocks like the Argus Building, the Bermuda Monetary Authority, Corner House and HSBC.