CHC update on UK pilots negotiations and strike ballot
ST. JOHN'S, Newfoundland, Oct. 31 /CNW/ - CHC Helicopter Corporation ("CHC") (TSE: FLY.A - news and FLY.B - news; NASDAQ: FLYA; advises that the strike ballot conducted by BALPA, the union representing 149 of the 209 pilots employed by CHC's UK operating subsidiary, CHC Scotia Limited, was concluded today. Of 149 pilots represented by BALPA, a total of 138 votes were cast, with 109 unionized pilots voting to authorize strike action at a future date and 29 voting against. Accordingly, 73% of the unionized pilot work force, but only some 52% of CHC Scotia's total pilot work force, have given a mandate to strike if the union decides to do so.
As previously advised, no withdrawal of services is permitted under UK law except after a 7 days formal written notice to CHC Scotia that strike action may be initiated; this strike mandate expires 28 days after completion of the strike vote (today).
In calling the strike vote a month ago, BALPA advised it was doing so in order to have CHC Scotia present a further, improved offer. CHC Scotia maintains that its current offer of salary increments over three years is very fair to its pilots in the existing market and represents a significant commitment from the employer.
CHC Scotia has offered to resume negotiations through an independent mediator, in order to facilitate a meaningful exchange of positions and to enhance the likelihood of settlement without a withdrawal of services. At this point, CHC Scotia is strongly of the view that third party assistance is necessary to achieve a mutually satisfactory resolution of this dispute. BALPA has not accepted mediation, but has indicated it would let members decide on the resumption of talks with a mediator.
CHC reiterates that its final offer of increased salary and pension benefits over the next three years is exceedingly fair to its pilot work force, as compared to others in the same profession worldwide and also to fixed wing pilots going forward. CHC Scotia is in constant communication with its UK customers on the status of negotiations, and with respect to the recent pressure from BALPA. CHC does not anticipate that this threat of industrial action will have a material adverse effect on the Corporation.
CHC Helicopter Corporation, through its subsidiaries and investments, is a leading provider of helicopter transportation services to the oil and gas industry, with a combined fleet of 324 helicopters operating in 21 countries, and more than 2,300 employees worldwide.
This press release and management's discussion and analysis may contain projections and other forward-looking statements within the meaning of the "safe harbour" provision of the United States Private Securities Litigation Reform Act of 1995. While these projections and other statements represent our best current judgement, they are subject to risks and uncertainties that could cause actual results to vary. These statements may involve risks and uncertainties including, but not limited to, factors detailed in CHC's Annual Report on Form 20-F and in other filings with the United States SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.