The proposed merger between regional carriers Leeward Islands Air Transport (LIAT) and Caribbean Star could be in jeopardy if the issue of unionization is not settled, says one regional shareholder government.

Antigua and Barbuda Prime Minister Baldwin Spencer told the Caribbean Media Corporation (CMC) that if a no union stance is put forward as the basis of the merger, it could very well mean that there would be no merger of the two regional airlines.

 "This issue about unions and having a no union policy as far as the airline industry is concerned is a non starter, that is non negotiable. We are not going down that road period. So if it means that this whole issue is going to turn on whether not a merger is going to take place then so be it," Prime Minister Spencer said.

He said that the exclusion of unions poses constitutional problems, since the constitutions of all Organisation of Eastern Caribbean States (OECS) enshrine the rights of workers to be represented.

Spencer says he also believes it is "totally outrageous" to sanction an arrangement which prohibits unionization given the long-standing contribution of the trade union movement to regional development.

However, the man at the center of the issue, Texan billionaire Sir Allen Stanford, who is the owner of Caribbean Star, insists that he is not anti-union, but pro-employee.

"What I am saying is the merger will take place hopefully by year end and what is in the best interest of the new company, the traveling public in the region and various shareholders and therefore the employees also will be benefiting from this.

"Whether that's a union or non-union new company I will not make that decision. I am pro-employee, pro-Caribbean and pro-growth," Sir Allen told CMC.

Questioned about the his stance on unions, Sir Allen would only say that unions are good in some circumstances and may be a hindrance in others.

Pressed to comment about whether unions were suitable in the case of the LIAT Caribbean Star merger, Sir Allen remained clear of a direct answer, insisting that the final decision would be taken by shareholder governments and not with him.

"My goal is to do this:  to bring Caribbean Star and LIAT together, we create a new airline, with no debt, new airplanes, cash in the bank and we have something with a viable future. That viable future may or may not include unions.

"If it does it does; if it doesn't it doesn't. All I can say is this, a union's jobs is to get the best deal for their employees. If the employees are already getting the best deal maybe a union doesn't have a place. That's all I am saying. I am not pro, I am not anti. I am pro-employee, pro-Caribbean, pro-growth," Sir Allen said.

Meanwhile, one the key unions representing LIAT workers, the Antigua Workers Union (AWU) is closely monitoring the merger talks.

General Secretary David Messiah said the union would not back down from ensuring that the right of workers is represented.

Last weekend, trade unionists from six Caribbean countries held talks in Grenada and agreed to form a standing regional consultation council and a negotiating committee to protect the interest of LIAT workers in the event the merger takes place.