Pilot Strike Looms Large at Air Log in the GOM
The latest information out of the Collective Bargaining Agreement (CBA) negotiation between Air Log Pilots and OLOG's Air Logistics unit seems headed to a walkout by pilots unless the management decides to compromise.
The news from the negotiation indicates the Local 107, OPIEU, has made its third counter proposal December 13th and the company is supposed to have stuck with their usual response of "Your pay proposal is preposterous! There is no rationale for your proposal. There will be no retroactivity...we are not going to pay for the lack of movement over the past months."
The Pilots Union must wait for the Federal Mediator to announce a deadlock and release the parties before further job action may be taken.
Informal polls show an overwhelming support amongst the pilots for shop action to include walking out unless the company comes to the bargaining table with an acceptable proposal.
A smart financial play by those invested in Offshore Logistics (symbol OLG ) would be to start selling shares now in advance of labor actions adversely affecting the OLOG share prices. The stock has been downrated recently by Jeffrie analysts. Maybe they are aware of the serious gap between the Union proposals and the Air Log position.
The latest company proposal was for a pay rise in the amount of approximately 3.4% over a four year contract with no increases for the first two years. Under the company proposal, 28 pilots would actually receive a reduction in pay based upon the company pay plan.
The company pay proposal does not even meet the current annual cost of living increase figures as calculated by the Federal government.
This situation, in conjunction with the current unrest in the Bristow/UK unit of OLOG seems to indicate a management policy that is designed to cause the company severe financial problems in the future should strike actions be called in both their US and UK operations.