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Pilot Strike Looms Large at Air Log in the GOM

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Pilot Strike Looms Large at Air Log in the GOM

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Old 17th Jan 2005, 15:09
  #61 (permalink)  
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A company explanation of the situation.....


We employ approximately 300 pilots in our North American Operations who are represented by the Office and Professional Employees International Union ("OPEIU") under a collective bargaining agreement. Because this agreement became amendable in May 2003, we began negotiations with union representatives in March 2003. After approximately eight weeks of discussions, an agreement could not be reached on several key areas, most notably compensation levels. Both the union representatives and the Company agreed to seek assistance from the National Mediation Board, or NMB, in appointing an independent mediator to assist with the negotiations. A mediator was assigned by the NMB and sessions have continued to date with some progress being made. In the future, all negotiations will be at the discretion of the NMB mediator. If the mediator and the NMB should determine that no further progress is being made toward resolution, then the NMB can seek a number of alternatives which include:

1. Declare a Release, which would start a 30-day "cooling-off period." Negotiations may continue during the "cooling-off period." If the dispute remains unresolved after the "cooling-off period," then both parties would be released from negotiations and could seek "self help". When "self help" is available the pilots could then engage in a work action that could take a variety of forms including a work stoppage. We have contingency plans in place to respond to these scenarios and believe we will be able to continue operations with limited or no disruption in services. However, no assurances can be given that these plans will be effective. We cannot reasonably estimate the financial impact of a work stoppage, should one occur, on our results of operations; or

2. The NMB can continue negotiations for extended periods of time (in some instances for several years) until one or both of the parties change their demands and reach an agreement.

In March 2004 we petitioned the NMB for a release due to lack of progress in negotiations. The NMB declined this request after input from the Union and instructed the parties that negotiations should continue. The negotiations did continue and some progress was made; however, on August 2, 2004, the Union petitioned the NMB for a Release. The NMB declined this request after input from us and instructed the parties that negotiations will resume the week of November 3, 2004 in Lafayette, Louisiana.

Based on our latest proposals made to the union, base salary expense would increase by approximately 13% annually. Given that the pilot group represents only 33% of our North American workforce, we do not believe that this level of adjustment or the results of our negotiations will place us at a competitive financial or operational disadvantage.
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Old 19th Jan 2005, 03:56
  #62 (permalink)  
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LAFAYETTE, La.--(BUSINESS WIRE)--Jan. 18, 2005--Offshore Logistics, Inc. (NYSELG - News) announced today that its third quarter financial results will be lower than most analysts' estimates. For the three months ended December 31, 2004, based upon available information, the Company estimates that diluted earnings per share will be in the range of $0.45 to $0.51. In the comparable 2003 period, the Company earned $0.12.

A reduction in flight activity and higher costs in the Company's Gulf of Mexico operations are the primary reasons for lower than expected results. Flight hours in the Gulf of Mexico were 9% and 4% lower, respectively, from the September 2004 and December 2003 quarters. In addition, direct expenses and depreciation increased during the trailing twelve months due to higher personnel costs and the placement of new aircraft into service.

The Company also announced that in November 2004, management made its final contract proposal to the union representing the North American pilot work force. During December 2004, the membership voted and rejected the Company's proposal, and the union subsequently made a request to the National Mediation Board (NMB) to be released from negotiations. The Company has informed the NMB that it has no objection to the granting of a release to the union. The NMB is not obligated to grant a release and could require the parties to continue negotiating. However, if a release is granted, a thirty day cooling-off period will start, and at the end of this period, the Company and the union will be allowed to engage in self-help measures. The Company has taken steps to put contingency plans in place, including the use of contract pilots, should the union seek to engage in any self-help measures such as a strike or work stoppage. Under these circumstances, the Company believes it will be able to continue operations with limited interruptions until a new contract is entered into, however, there can be no assurance that the contingency plans will mitigate all potential service interruptions.

The Company believes the union is negotiating in bad faith and therefore, on January 13, 2005, filed a complaint in Federal district court seeking a declaratory judgment to this effect, and a permanent injunctive order compelling the union to cease its bad faith bargaining and to begin bargaining in good faith.




I am confused...the company says one place they have no objection to the union being granted a release from negotiation and turns around a while later and sues in federal court saying the union is not negotiating in good faith.

It seems to me....if you have a Federal Mediator involved...does that not connote overseeing a negotiation process with a view towards settling an issue or set of issues? If the company is acting in good faith and the union isn't...why would the company not demand the mediator to intervene and try to get the union to start bargaining in good faith? Sounds to me like a game is being played here or someone who eats lunch at the Blue Dog is having too many beers with his lunch.

Would not you want to negotiate and find a compromise if you were acting in good faith? Did not the union submit a company offer to the membership and it was voted down? The company in another SEC filing said the increase in Pilot's wages would not hinder the companies competitive posture in the Gulf of Mexico...that is publically available. Makes one wonder why they are being so hardnosed over this?

This is turning into a train wreck here. The company says it is going to hire contract pilots....where are they going to come from? Air Log, PHI, Tex-Air, Houston, the EMS operators are all advertising for pilots....the summer fire season is coming up...the summer Bush flying season is coming up...logging is going to pick up shortly....are they going to strip their overseas operations for pilots? They can't man the aircraft they have now without a lot of workover from the current crews.

Somehow....if a strike does occur...we will see more than "minor" disruptions in service for Air Log. Their stock price is already headed south.

I would think a reasonable compromise is still possible if both sides genuinely look for it. A whole lot of people stand to lose if a settlement isn't reached before a strike occurs.
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Old 19th Jan 2005, 05:07
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Unfortunately, the way it looks from here is that if the current management stays in place Air Log may be another Enron. If they don't wake up, the company will be bankrupt and sold off piecemeal, while the management team uses the golden parachutes already supplied. The pilots, mechanics, and other workers will be out on the street. But the flying still has to be done by someone, and the jobs should still be available somewhere, but the way things work the seniority built up will be gone.

I fervently hope I'm wrong, but I don't see much intelligence there, just personal greed.
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Old 19th Jan 2005, 20:45
  #64 (permalink)  
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Here you go Lads!

Pretty good rate of pay for a JetRanger driver....

We now know what a pilot is worth to Air Log in the Gulf.....maybe the Union boys will want to quit the union and all go contract rate....would that make recruiting full time permanent guys a bit hard then?

Knowing the American helicopter pilot community....they will be able to hire enough guys for this and thereby defeat the union.

....or will they?

I notice they offer a choice of time off....something they do not do for their union pilots....they used to grant 14/14 rosters if you had an oppo that would trade with you...then when they had trouble getting pilots who worked that roster to workover....they cancelled that agreement.

Wonder if some of that flexibility would work with the union pilots...like maybe improve the working environment some?



Position: Oil Industry Pilot Posted: 1/19/2005
Company :
Air Logistics
(p) 337-365-6771
(f) 337-367-8796
(e) [email protected]
Contact Person :
Tara Bienvenu

Job Location :
Louisiana
Job Description:
CONTRACT PILOTS Air Logistics, LLC has immediate openings for Contract Helicopter Pilots for day VFR operations in the BH 206 Series, BH 407 and EC 120 helicopters throughout the Gulf of Mexico. Minimum qualifications include: o 1,500/Hr. plus Helicopter Total Time – 1000/Hr. PIC Helicopter Time o FAA Commercial Rotorcraft o FAA Helicopter Instrument Rating o Off-shore Experience Preferred o 200/Hr. Helicopter Flight Time Within Preceding 12 Months o Second Class FAA Medical These contract positions have a projected term of 3-6 months with possibility of full time permanent employment upon completion. Work schedule will be 28-Days on (30 calendar days) with option of 7, 14, 21 or 28 days off. Compensation will be $500 daily rate; training pay will be $250 daily rate (7-12 days) and lodging will be provided. Contract Pilots will be responsible for their meals and transportation to and from all assignments. Interested candidates should submit a resume outlining your qualifications.
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Old 19th Jan 2005, 21:41
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SASless

If that's for real then those rates would be attractive to a casual pilot. But, it must be remebred that they will have to run picket lines etc.

Unless all the union pilots are fired (which the company can do under the self help provisions) there won't be much chance of a permanent position and can you imagine the CRM in the two crew environment in the subsequent months?

What is interesting is that PHI is also still in contract negotiations. They must have hoped that the Air Log situation would have been solved by now so it could be used as a model. Didn't the PHI agreement expire in May 2004?

Gomer, what's the status of the PHI negotiations?

HH
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Old 19th Jan 2005, 21:52
  #66 (permalink)  
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Hip,

Correct me if I am wrong...if the contract is finally settled...there can be no firings of pilots that walked out.

Also....at what point can the company fire pilots that have walked out....as long as the union exists and they are on strike...no dismissals can be done. The union would have to be de-certified first would it not?

What happens if a contract pilot hires on...does the training...then when confronted with some not very warm regards by striking pilots...refuses to cross the line? What does the company do then...fire him? Laws govern strikers actions...and I certainly pray no one would resort to violent actions but for one....realizing how popular one might be to the strikers gives me pause.

I would not hire on at Air Log now on a bet......

As to CRM and a two pilot cockpit....that is not a concern..being in the accomodation at night is when it would get cramped....or the crew room.

This is headed the wrong way.....certainly compromise is the correct answer.
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Old 19th Jan 2005, 22:32
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SAS

I agree that compromise is the best thing here. I do, however, believe that once the "self help" provisions become available to either party which would presumably be after the 30 day cooling off period, that either side can take whatever action deemed necessary by that party.

I am happy to be corrected, but it is my belief that pilots can be fired for taking strike action after that period.

Like you, I wouldn't hire on right now either, those nights in the trailers would be long and potentially sleepless just waiting......

This thing seems to have dragged on for so long and the continuing adversarial relationship between Air Log and its pilots cannot be doing the company, safety, or for that matter the oil industry any good.

It would also be intersting to get old Gomer's perspective on this since I think he is a PHI pilot.

HH
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Old 19th Jan 2005, 23:31
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Louisana is a Right to Work state. The union CBA is a "closed shop" agreement.
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Old 20th Jan 2005, 13:15
  #69 (permalink)  
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The GOM can be a very tough place to work. Pilots are more isolated than at any other job I've ever had. You rely on other pilots, even other operators' pilots, to get the job done. Add the fact that pilots are THE face of the vendor to the customer, Air Log is just name on the side of the helicopter, and contract pilots will seem intruders and interlopers. The guys in the field may decide that the exceptional contract pilot beats a boat ride on break day, but break days only come once a week. The rest of the time, a contract pilot's going to have a supreme job on hand.
Flying offshore requires a mental accomodation. At some point, GOM pilots have to come to some accomodation with the idea that they're not walking away from a forced landing on the water. Assistance will have to be sent to you. "New guy" turnover's apparently an issue at Air Log. Any GOM operator can tell you stories of new guys who made one flight, one day, one hitch, and never even bothered to resign. That's with a friendly work environment- this will be much worse.
Contract pilots will be seen by all, even pilots opposed to unions, as working against the interests of the profession. A poor professional situation with one's peers, employer or customers, and very poor long term prospects. Besides which, the advertised minimum experience level is par for hiring now- why accept this horrible scenario when it means pariah status, long term?
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Old 20th Jan 2005, 13:31
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49,

I am sure there are pilots that will gladly jump into that fire...young pilots looking for a break....older guys that have retired and want to make some quick money. Your suggestion that a forced landing in the water might get a different reaction from anyone that could help, I do not think is fair. Up and until one discerns no passengers are involved maybe.

Seriously, I wonder how many pilots Air Log needs to survive when the strike occurs? Can they get enough contract pilots and shuffle the strap hangers out of the office in sufficient numbers to cover the need?

How are the customer guys going to take to the new guys....old relationships are serious business to Boudreau and Thibodeau down there. They like to fly with "their" pilot. This is not like the North Sea where they climb onto a bus for the ride out to the rig. The Gomers ride in small helicopters and spend a lot of time with "their" pilot. Some of these pilots have been on the same contract for years and years.....brand loyalty as you suggest is not with Air Log but with the individual pilot.

As I recall from the outset of this....the initial cost to the company was going to be around Eight Million dollars per year (assuming they accepted the initial demand by the union)....why is it they are going to all of this hate and discontent to fight the union? T

It appears they are willing to spend far more fighting than what it was going to cost initially. The cost could have been taken out of the bonus payments to the upper management and still left over Ten Million Dollars for bonus payments to the senior managers.

Now, I do not claim to be a business wizard...but at some point....logic and reason should enter into a business decision. I fail to see any in the company position here. It seems they are fighting purely for the fight and not with an identifiable goal.

You have any suggestion as to what motivates the company? I know what the union is after....better pay, benefits, and work environment. What is it that is such a bee in the bonnet to the management that provokes this fight?
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Old 20th Jan 2005, 15:44
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Ah yes...but the hockey fights are not as interesting to watch.
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Old 20th Jan 2005, 19:45
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SASless, and anybody else confused by my poor phrasing-
I apologise for any misunderstanding. I have no doubts that anybody in distress in the GOM will get all the help that's available from anybody. In fact, that was always something that was a comfort to me- a mayday call would have all colors of helicopters overhead in minutes, if not seconds. I don't think that will ever change. My statement regards ditching, is that it's a different scenario that many pilots never accomodate. Me, I'll take the water over downtown, or the trees- especially mountainsides- any time.

The question of general helpfulness to a new guy who's a "contract pilot" is a different kettle of fish. I'm sure there are some who'll see it as opportunity. It should be considered very carefully before anybody accepts any position. Divorces, civil wars, and labor issues are especially hard on outsiders, whatever the eventual resolution is.

I have absolutely no idea what drives hate and bloody-mindedness in general, if that's the base of this issue. There's more to this fight than an outsider can even guess at.
I'm really sorry to see Air Log in this pass- they are an innovative and worthy business. The guys on the line want to be Air Log pilots. I would think that that identification with, and pride in the company, would be the basis of a settlement.
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Old 20th Jan 2005, 19:54
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The PHI contract won't be settled soon. Note that the Air Log contract expired over 2 years ago. The company has no incentive to settle when the status quo stays in place indefinitely. The longer it takes until a new contract is signed, the longer the company can keep on paying the current salaries and benefits. Thus I completely understand Air Log's holding out for as long as possible, but I don't understand the current position. If things go as they seem to be doing, Air Log could be bankrupt and out of business in the foreseeable future, but the management team will rely on the golden parachutes already in place. Give me a few million dollars and I wouldn't care about the future of the company either.
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Old 20th Jan 2005, 20:17
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Gomer,

Are we being a bit callous here....attributing such a lack of concern to the management that they would take a few million dollars or whatever escape package they have negotiated for themselves....and let a good company founder out of greed or shortsightedness?

It would seem they would like to hang around for a long time and milk this cow for all she was worth....make enough that way they could pull the pin....retire to other endeavors without worrying about money or an unsavory reputation.

Are you of the opinion that the management does not care about the company's future to that extent? If that were true....how did they get into such a position of reposibility? That sounds like a grand conspiracy if I ever heard one.

I do wonder if ego has gotten into the mix here in an unfair proportion....some kind of ambition to poke a stick into the union eye somehow. OLOG encountered similar problems on the North Sea with the Bristow pilots and appeared to find a way to settle.

Granted the executive that headed that agreement is no longer with OLOG but is now at another growing helicopter company in the Gulf. You wonder if that might have played a part in his seeking alternative employment and leaving OLOG?

OLOG played hardball during the Bristow North Sea contract negotiation but still settled and pretty much gave the pilots what they asked for in the end....but that does not seem to be the case here. Either the union in the Gulf does not have the moxie the British union did....or something else is at play here.

The American way of fussing over CBA's does lack the etiquette of our British brothers so that might account for some of the angst, dust and feathers flying.

Definitely....why should PHI settle if the Air Log bunch don't....on the one hand....the PHI pilots stand to gain if the Air Log guys go on strike....for sure the two big companies in the Gulf of Mexico on strike would be a very interesting situation.

If the Air Log guys settle....then the heat is on PHI then....they are ahead of Air Log now...and would have stayed that way even under the now voted down offer Air Log made. (as I understand it anyway)

PHI would not have to give much of a raise to the pilots to if that happened....(Air Log pilots settling for a CBA that only made them on par or slightly below the current PHI pay levels.)


I wonder what the overall strategy of the company is...like you say...drag it out as long as possible....only to give in at some point.....that does not sound very wise.

Or....fight to the bitter end and hope to hire replacement pilots and wind up de-certifying the union as a result....and thereby end the pilot's union in the gulf?

Will the current bunch of Air Log pilots have the courage to stick it out.....find other jobs to do while waiting for the company to fold its tent....or settle? If they move to other companies....the old dogs lose their seniority and pay they have built up over the years.....that is a loss to them if that happens.

I guess time will tell......
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Old 20th Jan 2005, 21:45
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Sasless, regarding the bristow deal, the guys at CHC pawed the way for the salary increases in Aberdeen in 2001/2003.
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Old 20th Jan 2005, 21:54
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joedirt,

Are you 100 % sure of that ?
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Old 21st Jan 2005, 14:46
  #77 (permalink)  
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Gleaned from a US based not so professional helicopter web site...

An anti-union poster made snide comments about unions and union members...said he was headed to the gulf to do a contract job and help bust the union. Someone responded with an offer to "shoot you dead".

The forum is anonymous ...neither poster can id the other...supposedly someone from "the company" has asked for the identifying information of the "shooter" with a view towards criminal prosecution (...or use against the union maybe???) and the web site owner citing commerical pressures and such... says he shall do so.

That site claims "free speech" is more important than form and decorum....until now.

The situation is getting ugly in the Gulf.....wonder how this shall play out in the end?

Wonder if that exchange constituted a "threat" under the US law?

If the "shooter" is not part of the union, local, or employee of Air Dog.....has he violated any Federal laws governing strikes, etc. ?

Is that exchange an exercise of "free speech" by both parties and not a violation of law?

Interesting age we live in....used be in labor disputes it was baseball bats and big sticks...knives...guns...chains...dirks and daggers....now it is a keyboard and mouse!
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Old 22nd Jan 2005, 02:00
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The way the labor laws in the US are written, especially the Railway Labor Act, which applies here, the company can do whatever it wants with impunity, and labor can be slapped at will by the company and the guvmint. Ain't no such thing as free speech when business is involved, and the speech comes from anyone in labor. If you don't believe this, just look at history, and read the laws.
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Old 22nd Jan 2005, 02:34
  #79 (permalink)  
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Gomer...it was suggested today that the "shooter" may have been a management type with too much time on his hands....seems there is a base manager that has been "outed" a time or three already. Would it not be a laugh if it turned out to be someone that is part of the company team and not a union guy? Probably just some poor schmuck that forgot himself....sent an inflammatory post....and has nothing to do with either side of the thing.

The drums are beating overtime down there I hear....what you been hearing about the situation? Lots of rumours coming out of the gulf lately.
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Old 22nd Jan 2005, 14:13
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Amidst all this Air Log strike hysteria, I think people are missing the big picture. Let's step back, take a deep breath and expand our view a tad, shall we?

FACT: No one can say with certainty how many pilots will walk. No one. There will be opinions on both sides, but in the end it is an unknown.

Air Log will publicly take a confident stance. They have to - they cannot show any weakness. They will bluster about this or that...how they're hiring "temps" or whatever...but the bottom line is that they really cannot say how a strike would affect them. Period.

Okay, now let's look at it from their customers', the oil companies' points of view: Oil companies have transportation contracts with Air Log that they fully and reasonably expect will be honored. They cannot and more importantly will not accept any disruption in service; their employees need to be carried by helicopter and that's that. Boats are *not* a viable alternative, even temporarily.

My personal opinion is that the oil companies will not be very sympathetic or understanding to Air Log. I believe that the oil company management will not tolerate *any* disruptions in either their scheduled crew-change flights or their offshore inter-platform flights, especially disruptions of the vendor's own making.

Having said that, we can safely assume that management from Air Log has met with the management of their major oil company clients to discuss a possible strike by pilots. I believe that the oil companies have already given Air Log a mandate that there better not be any such disruptions. ANY! (It gets back to that contract thing.)

So. Where are we? Simple, there will be no strike.

Air Log will blink. They simply cannot afford one day of a strike in which even one oil company crew-change is cancelled. Because who's it going to be? Who makes the call as to which crew-change goes and which one doesn't - especially when you don't even know in advance how many crew-changes might have to be cancelled? You KNOW there have to be some pretty nervous decision-makers at Air Log right aboot now...biting their nails, going down the list, trying to determine which are the most important flights to cover and which ones they can "safely" cancel or farm-out without too much penalty...coming up with contingency after contingency based on X, Y, and Z percentages of pilots on strike.

To be sure, the other GOM operators have pledged their support to ALI management. Oh yes, I'll just bet the other operators would love to get their hands on some Air Log work! "Suuuuuure, we'll cover your flights...if we can," they say. And depending on their excess capacity, some other operators may be able to help out.

Bottom Line: Any way you slice it, Air Log can only gamble on how well they'll be able to cope with a strike situation. But there is too much uncertainty for the oil companies to allow Air Log to gamble. A strike will not occur. The oil companies simply will not stand for it.
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