GOM Gossip

[Chopter]

PHI, pilots agree to mediation conferences

Source:
http://www.theadvertiser.com/apps/pb...EWS01/60814012
PHI’s unionized pilots and the company, which have been in negotiations for the last 29 months regarding pilot contracts, have agreed to public interest conferences with the National Mediation Board.
The announcement comes two weeks after the union announced it had been released from national mediation and entered into a 30-day cooling off period, the last stage before a union can authorize a strike.
Steve Ragin, president of the union, called the conferences “super mediation” and said they will begin Aug. 23 and conclude presumably at the end of the cooling-off period.
PHI Inc., a helicopter transportation company that serves the oil and gas and air medical industries, has accused the union of making “unreasonable and irresponsible” demands that threaten the company’s future.
The company also claimed in a statement that it did not believe the majority of pilots would walk off the job and that it has contingency plans in place to protect its customers, employees and business.
Ragin has argued that the pilots are some of the lowest paid in the business. The company has offered a salary comparable to others but it has not agreed to offer back pay to pilots since the last contract ended in May 2004.
Ragin has said the union, which represents PHI’s 550 pilots, has been granted authority to strike.

[SASless]

Now as I recall...when Air Log (a Bristow Group Company) had their last CBA fuss....there was feathers all over the place....and the company coughed up money retroactively to the end of the last CBA. That is not an unusual demand I would think....the CBA is a contract and does not end during negotiation but is "renewed" as they note in their June 30 SEC Form 10Q filing. If PHI in this case wishes to drag its feet for 29 months then it would seem they would have to pay up. I can assure the management that will be the Union demand.....and they will stick to it. I am sure that....oops...would assume the PHI management knows that. But then....GOM helicopter management types sometimes do the darnedest things which defy logic.

I love the argument....we compromise and we will go broke. Yeah, right!

It would appear PHI lost 2.8 Million dollars this past quarter.....after taking a 12.8 Million dollar hit for buying back debt. Thus it was really about 10 Million USD to the good before buying the notes back during the quarter and still have about 217 Million USD in cash assets.

[SASless]

The little birdies are singing again in the GOM.

Heard amongst the chippering was something about one of the big three firing a senior pilot for some unannounced reason. Then within two days, rehiring him and giving him a pay rise. It is suggested the change of heart occurred shortly after the Boss Fellah realized he had fired his only S-61 TRE/IRE (DPE in American).

Surely this is a false rumour?

[Gomer Pylot]

Well, the S61 reference pretty much nails down the company. Neither Air Log nor PHI have any S61s.
Another rumor is that the notes PHI paid off, including a 5% penalty for early payment, were issued by Al Gonsoulin. Somebody made money on that transaction. Apparently he studied very intensely under Bob Suggs, who used substantially the same tactics to show no profit all those years.

[gomex]

If anyone believe that PHI lost any money last quarter, I have some fine desert land for sale in southern Louisiana. PHI flight time was up almost 20%, every helicopters that is in flyable condition are on full time contracts. All the GOM operators have raised their rates this past year, and I believe they all include automatic increases in jet fuel cost. as the price of jet fuel rises. The financial statement also said PHI lost money on selling of two aircraft; the used helicopter market is going real strong. I know that Air Log is trying to buy any surplus equipments they can get their hands on. I have a feeling PHI sold these aircraft to one of their subsidiary. This has been done many times in the past. I will be watching for a good outcome for the PHI pilots. The pilots have the support of all the Air Log pilots, we will do what ever they need us to do.

[SASless]

Hey Gomex,

When one becomes a Training Captain for the GOM outfits, is that considered a management or supervisory position? Would not that 61 Check Airman have been working closely with the Director of Training....Chief Pilot....Director of Ops on a daily basis providing input on training standards, procedures, and the such?

[TiPwEiGhT]

Are there many openings for pilots in the GoM right now? Just curious...

TiP

[Flingwing207]

Originally Posted by TiPwEiGhT

Are there many openings for pilots in the GoM right now? Just curious...
TiP

Yes there are - For instance, both Era and PHI are currently attempting to hire about 10 - 14 new pilots a month.

[TiPwEiGhT]

Thanks Fling. What sort of experience do they look for and do they show interest in overseas trained pilots? Does anybody have any opinions on the type of work there?

Thanks, TiP

[Flingwing207]

Originally Posted by TiPwEiGhT

Thanks Fling. What sort of experience do they look for and do they show interest in overseas trained pilots? Does anybody have any opinions on the type of work there?
Thanks, TiP

Generally around 1200 hours and an IFR rating to be a VFR captain, more variable for an IFR SIC (I've seen as low as 700 hours and CFII). The SIC pay is about $10K/year less than the VFR captain pay.

Not sure how they would work with foriegn ratings.

How's the work? Well a VFR pilot goes on duty at 0530, flies until about 1800, does paperwork and a compressor wash and gets done by 1930. Some days you might fly 7.5 hours, other days you might not fly at all, it depends on the contract. If your aircraft has A/C, you are happy (a lot of them don't, mine does, ha ha). You will spend your day looking for places to eat, pee and get fuel while you shuttle folks around the various structures poking up out of the Gulf (and dodging the pretty much daily thunderstorms and IFR pockets that pop up all over).

That's a sneek peek.

[Gomer Pylot]

Every company in the GOM is hiring as fast as they can, and none can hire fast enough. Turnover is very, very high. There are lots of foreign pilots, from just about everywhere, and it's becoming somewhat uncommon to hear a southern US voice on the radio. Lots of women, lots of people from everywhere. If you have 1000 hours, a work visa, and a commercial license, you can get hired. The hours may not be mandatory.

[walesuk]

Hey everybody,
Got a few questions if anyone knows answers... someone here said ERA is hiring with part 135 minimums but their website says 1200. Is one for SIC and the other for SIC?

Also, I heard that the ad for Air Log is for SIC although the ad doesn't state that. Anyone know for sure? If it's SIC, any idea how much time you get, what kind of aircraft and how long till they move you to PIC?

I saw that some of these places have employee housing... I imagine that's only for the employee and not for spouses? From some of the stuff I read here, not sure I'd want my wife there anyway!

I'm hoping to get down there working in the next couple of months... is the fall a bad time for hiring or will there still be some vacancies then?

Thanks for the info...

[crop duster]

Originally Posted by walesuk

Hey everybody,
......I saw that some of these places have employee housing... I imagine that's only for the employee and not for spouses? From some of the stuff I read here, not sure I'd want my wife there anyway!
I'm hoping to get down there working in the next couple of months... is the fall a bad time for hiring or will there still be some vacancies then?
Thanks for the info...

All of the GOM operators provide housing while you are on hitch but this aint like home. It'll probably be a trailer house (moble home for the sensitive ones) or an apartment somewhere near the base you fly out of. It's not the kind of environment your wife would want to stay at and most don't allow it. This is company housing that just gives you a place to sleep and wash your clothes and a$$.

barryb

[Gomer Pylot]

I don't know about all the requirements for individual operators, so you need to talk to the companies about that. I suspect requirements are somewhat flexible, depending on need at the moment. At the moment, need is high.

As crop duster said, the housing the companies offer is for employees only, and not that elegant. You generally get a small twin-size bed, a private room if you're lucky and share it with another pilot if you're not (AFAIK you don't have to share a bed at any company, though). The bathroom is always shared with at least 2, maybe more, rooms. Don't even think about putting your family in there, if you care about them at all.

The fall shouldn't be much different from now - the pilot shortage isn't going to be over for some time.

[ENG Brit]

Flingwing,

Your "how's the work" comment brought a smile as it's almost exactly what the fractional/charter business up here in NY has been like all summer long.

Yes, its off-topic, but I had such a deja vu moment there I had to put pen to paper, so to speak.

Going back to sleep now...I mean official crew-rest, lol.

[SASless]

Will the PHI Pilots be forced to walk or not?

Sounds like a repeat of the Air Log debacle.....PHI is fighting to the bitter end after dragging their feet for over two years on renewing the CBA.

Article published Aug 23, 2006
PHI, pilots have 5 days to agree
Jason Brown
[email protected]
Final discussions between Lafayette-based helicopter company PHI and the union representing its 550 pilots began today over a long-standing pay dispute.

The meetings are taking place in Washington under the supervision of the National Mediation Board and have been referred to as a "last- ditch effort" to resolve 29-months worth of negotiations.

The parties presumably have five days, or until Monday, to negotiate an agreement before the federally imposed 30-day cooling-off period is lifted, which would free the company and the union to take any action they deemed necessary.

For pilots, who are arguing for increased pay and back pay for the last two years since their contract expired, among other issues, that could mean a strike that would affect not only the oil and gas industry, where PHI has some 336 pilots, but also the Emergency Medical Services division of PHI, which has 221 pilots across the United States.

PHI bills itself as a world leader among helicopter companies and has developed a sizable and profitable business in the Air Medical industry. Locally, three of its largest clients in the Gulf of Mexico are BP, Shell and Exxon.

"We feel like the ball is pretty much in the company's court," said Steve Ragin, president of the pilots' union. "We've gone just about as far as we think we can go. We will do our best to avoid a strike."

Representatives from PHI, who were not available for comment Tuesday, have said in the past that they do not feel that the majority of pilots would walk off the job, but contingency plans are in place should a work stoppage occur.

Ragin has said he feels the company has once again underestimated the "will and determination" of its pilots.

"We've made preparations for that eventuality and if the company is not willing to come up with or at least try and meet us in some fashion, then a strike would seem almost a certainty," Ragin said.

Those preparations include a communication network, housing for out-of-town pilots who want to participate in any work-stoppage activities, printed signs for picketing and two Web sites for quick updates.

Tim Kolysko, a PHI employee and spokesman for PHI's EMS pilots, said should a work stoppage ensue, pilots will ask the company's customers, vendors, suppliers and contractors to discontinue their business with PHI's EMS division in support of the pilots efforts until the issues are settled.

He said the patients and vendors "will continue to be served by our numerous and capable competitors."

[Chopter]

Source:
http://www.theadvertiser.com/apps/pb...WS01/608270360

Pilot contract talks get critical
Union says it won't strike if storm in Gulf.


The threat of a strike by the unionized pilots of Lafayette-based helicopter company PHI could be stifled by looming Tropical Storm Ernesto.
For more than two years, the parties have been locked in a dispute over pilot back pay and salaries.

On Wednesday, PHI and the union began meeting for the first of five days of "Super Mediation" hearings, with the National Mediation Board in Washington in a "last-ditch effort" to reach an agreement on a new contract.

If no agreement is reached by 12:01 a.m. Monday, both the union and the company are free to pursue other measures.
For the union, that could mean a strike.

But the pilots, who today enter into what is likely to be the last day of contract negotiations with the company, have said they would not put offshore workers at risk by striking when a hurricane is in the Gulf.

On Saturday night, Steve Ragin, the pilot's union representative, said in a phone interview the two parties still were "fairly far apart," and that the company had presented its final offer to the union. Today, the union will give another proposal to the company. Ragin said the union's proposal will be a "bold move" but he isn't hopeful for a settlement.

The outcome of the negotiations will affect not only the oil and gas industry, where PHI services Shell, Exxon and BP, but also the Air Medical industry, in which PHI has grown exponentially in the past few years across the United States.

The union has prepared itself for this worst-case scenario: the picket signs are ready, a communication network has been established and housing arrangements for outsiders have been made.

The company, which has declined repeated offers for comment, has said in a statement that contingency plans are in place and that in the end it does not believe the majority of pilots would support a strike.

But how can one of the country's leading helicopter companies, which in the past few years has seen increased profitability, and its pilots, who have one of the industry's best safety records, find themselves still at odds approaching the eleventh hour?


Pilot pay
PHI is one of the three major helicopter companies operating in the Gulf of Mexico. In 2005, on an average day there are 3,591 flights transporting workers and equipment to offshore rigs and platforms.
The union, which represents 557 PHI pilots - 336 in the oil and gas industry and 221 in the air medical sector - says PHI pilots are among the lowest paid in the industry.

Part of the union's hopes is to make their salaries and benefits comparable to those of PHI competitor Air Logistics.

However, PHI maintains it has offered a pay package that would bring it above the published pay rates of its major competitors in both the oil and gas sector and the air medical division.

"After over two years of bargaining, the OPEIU (the union) has regrettably persisted with unreasonable and irresponsible economic demands - demands that have no justifiable competitive basis," a PHI representative said in a statement.

Ragin said the company has grossly overstated the union's demands.

"They overestimate the economic impacts of our demands and while it's possible that their proposals are roughly equal to the stated pay schedules. In terms of total compensation they still aren't close," Ragin said, referring to their competitor's benefits and bonuses.

Ken Bruner, president of the Air Logistics pilot's union, said the tactics PHI are employing are similar to those Air Logistics used a couple of years ago during their union's contract renewal.

"It's the company's last big effort to try and break the union. It didn't work with us and I'm sure it won't work with PHI," Bruner said.


PHI's record of profitability
Many in the industry believe PHI management will be able to avoid a strike by the pilots. Al Gonsoulin, the CEO of PHI, is well-regarded in the industry for his business know-how.
In 2001, Gonsoulin paid roughly $32 million to Carroll Suggs, the former CEO and majority stockholder, for a 52 percent share in the company. Suggs' husband Bob founded the company.

Before buying PHI, Gonsoulin successfully founded and sold Sea Mar, an offshore marine transportation company, for more than $100 million.

Suggs said she admires Gonsoulin's business sense and thinks he will do the right thing for the shareholders.

"I love PHI. I never want to see it fail ever," Suggs said.

Even before Gonsoulin took over in September 2001, the company was undergoing change and had begun an overall rate increases. The most drastic increase in a decade occurred in May 2001, according to the company's annual report.

In February 2001, before the sale to Gonsoulin was finalized, the company slashed 161 employees, 120 of whom were terminated through a restructuring.

In December 2001, Erroll Babineaux, vice president of Acadian Ambulance's Air Medical division, which then leased five helicopters from PHI for its Air Medical Division, received a call from Gonsoulin.

Babineaux said Gonsoulin gave him an ultimatum: either pay 45 percent more for their services or find another operator. He gave them two weeks to decide.

"He left us with no choice. We could not afford to pay the 45 percent increase," Babineaux said, citing that 65 percent of the company's income came from patients on fixed incomes. Acadian Ambulance contracted with Shreveport-based Metro Aviation.

"If Metro Aviation had not come to our rescue, we would have been out of the Air Medical industry," Babineaux said.

To Babineaux, it marked a change from the old administration, described as "good corporate citizens" to one that put profit margins first.

But Gonsoulin's vision bore fruit and within a short time, the company's stock began to climb from approximately $11 a share to more than $30 where it has remained.

"He's a good businessman and a good businessman makes a profit anyway he can," Babineaux said.

Even Gonsoulin's pilots are quick to point out how his leadership has benefited the company.

"The market share of the EMS segment has been growing exponentially in PHI under the stewardship of Al Gonsoulin," said Tim Kolysko, an EMS pilot for PHI and spokesman for the EMS segment of the union. "We must recognize that Al has done a tremendous job at adding value to the company and bringing PHI back to profitability."


Industry reaction
Some in the industry say even if the pilots were to strike, other companies would pitch in to help keep traffic running to the rigs.
"It is an industry of survivors. They'll work it out .... In a crisis, they'll all work together," Suggs said.

Rodger Bagwell, CEO of RotorCraft Leasing, another helicopter company operating in the Gulf, said his company has not been called on to help but would if needed.

"We've got extra equipment and pilots available in case customers get in bind," he said.

The Air Logistics' union, however, has said it will stand in support of PHI pilots.

Mike Suldo, president of Air Logistics, is familiar with union negotiations and said he hopes both sides reach a fair resolution.

"Sometimes it makes wounds that are hard to heal," Suldo said.

[SASless]

Mike Suldo, president of Air Logistics, is familiar with union negotiations and said he hopes both sides reach a fair resolution.

"Sometimes it makes wounds that are hard to heal," Suldo said.

Tactics like recruiting a Snitch within the Union Negotiating committee and then giving the guy a management job after being caught red handed... does not go a very long way in building bridges.

It is bad enough to use underhanded means... but to rub it in by keeping the guy on-board to "supervise" the very folks he betrayed....now that takes a lot of brass in my book.

Somehow concepts like trust, honour, integrity, ethics, good common sense (or the complete lack thereof).... spring to mind when I think about tactics such as that.

How do you heal those wounds Mike?

Note: Mike Suldo was not President of Air Log when that occurred.

[TiPwEiGhT]

Can anybody tell me what Era is like to work for and also what the EC120's are used for?

Cheers, TiP

[Flingwing207]

Originally Posted by TiPwEiGhT

Can anybody tell me what Era is like to work for and also what the EC120's are used for?
Cheers, TiP

The EC120s are used to move 1 - 3 people and smaller tools and cargo (no external load). Some contracts will keep an EC120 offshore for days at a time (Era policy requires the ship comes in every third night for inspection). They might also be used for crew change for smaller rigs/platforms. Most times you won't go too deep, although you might go out 100 miles at times. They are definitely weight-range limited, and on high DA days, every takeoff is an instrument takeoff (eyes glued to the FLI).
From the pilot standpoint, Era is a young, busy, fairly cheerful, somewhat tactically disorganized company. If you have a desire to move up in aircraft, the next two years will be good as the huge stack of new aircraft come on-line. After that things will slow down a bit (more like PHI or Air Log). Pay is competetive, benefits are excellent, and at least for the last year or two, there has been no mandatory workover - most times there are more folks looking for workover than is available. So if you don't mind a little chaos, Era is a good place to be.