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.

OLOG
 

:ok: As a pilot who work in the GOM, SASless post is a very accurate description to what is happening to OLOG.

Found this at the OLOG Web Site.....



Insider trading for Neil Osborne alone amounted to $688,826 since 7 October 03 alone. Wonder what he knows?

Insider trading for Michael Rizk (head of the Alaska Operation for Air Log) was $1,456,017 since mid-June 2002. Wonder what he knows?

Insider trading by former Director Louis Crane was $3,039,460.

Mr. Osborne certainly knows enough to bail out. He's now with Tex-Air as COO.

Union and Air Log are now deadlocked. Union made fourth proposal....Company offered nothing but a "We will consider your proposal...." Union now awaiting a "Release" from the Federal Mediator....then Strike Vote....then Strike....unless the company offers some compromise that is acceptable to the Union.

Sounds as though the Union is holding out for a "Bench Marked" pay scheme which will provide a substantial pay rise for the pilots. The company's only offer resulted in an actual pay decrease for 28 pilots and provided a 3.4% rise over four years with no rise for the first two years.

Also...PHI is to start negotiating their Collective Bargaining Agreement (CBA) in the near future....wonder how that will play out as well. Rumors abound that PHI is for sale again. Reckon CHC will buy PHI and then be a competitor in the Gulf Of Mexico (GOM) against their rival OLOG?

Informal poll of the Air Log Union members confirms a very strong solidarity amongst the pilots and suggests a Strike Vote will be overwhelmingly popular.

Wonder if the UK Bristow pilots , BALPA, and the Air Log Union members can join forces in dealing with OLOG management? It would certainly submit OLOG to some severe financial hardship if that were to happen. No doubt the Share Price would suffer as a result.

:ok:

In Bristow and CHC Scotia (Aberdeen) a couple of years ago the only way the substantial pay rise agreement was reached was by the pilots in both companies giving the unions a mandate for strike action - and planning on seeing it through.

The results were swift as the companies knew the pilots were serious.

Mind you, since then all other benefits - pensions, loss of licence provision etc. has been under massive attack from 'management'.

CHC interested in PHI?
 

If CHC wants to buy PHI they will face regulatory hurdles. The FAA maintains that 70% of the ownership of a Part 135 air carrier such as PHI must be owned or controlled by US citizens. I believe CHC could own a majority pf PHI as long as 70% of the voting control was done by US citizens. Olog owns part of Bristow, the UK rules are more lenient, UK citizens must own 50% of the stock plus one share.

According to sources close to PHI's Chairman and 51% majority stock holder, he has no plans to sell at the moment.

source (this report went online about 2 hours ago, though the report itself has no date attached)

ATPMBA

If my recollections are correct Mr Dobbin has no problem in changing nationality if the prize is worth it.

ie: CHC bys OLOG or part thereof and then unifies the North Sea companies.

Then BP and the other overbearing bullies will be back to facing two operators on the North Sea again, rates and investments could be driven upwards and peace restored (for a while at least) until the cycle repeats itself.:ugh:

The strike vote is underway at AirLog, and will be counted on January 24, 2004. Every pilot that I have talked with has voted to strike. OLog management seems to be on a self destructive mission, they will not include our pilots in Alaska, even though they are under the same contract. The pilots of Alaska are being treated like second class citizens. The union is clear One Contract, One Company, One Retroactive/Benchmark Contract. To our Bristow Brothers and Sisters, the pilots in the GOM are 100% behind our negociators.

Gomex....

I reckon the company feels the union pay demand is unreasonable and rightfully determined the pilots in Alaska are not covered by the existing contract despite the court rulings. Any truth to the rumour that Neil Osborne got shifted out of the UK for being too easy in dealing with the Bristow pilots pay demands of a few years ago? Rumour has it that he returned to the warm embrace of the Air Log management to find himself stashed away in a spare broom closet with no real duties. Reckon he sees a better future at Tex-Air?

I notice the OLOG share prices are heading south...reckon the bad news is out....Yahoo had some very interesting discussions....went to the financial page...typed in OLG for the OLOG stock symbol....and read the discussions. Not very flattering.

I have been told the original pay demand....that would have cost Air Log 8 million US Dollars per year....out of 18 Million US Dollars that went for management bonuses for 7 executives last year...would only have reduced the company's profit margin by 5% to 23% vice the current 28%.

You have any information on those matters?:ok:

Heard yesterday of meeting called by Air Log management for all Training Captains and Check Airmen (TRE/IRE). It was reported that the training department staff (all Union members) were told they had 48 hours to decide whether they would continue to work during a strike and whether they would train/check contract replacement pilots prior to and during the strike. The company made no bones about it...either they do...or they shall leave the training department and be replaced by those that will comply with the company's wishes.

AirLog Alaska is advertising for a new guy's class to start 23 Feb for the "Summer Season" in Alaska. Rumor has it that one must swear a blood oath to cross the picket lines if/when the strike occurs in order to be hired. Any one know why they would hire in February for a Summer Season that historically starts in Late April or Early May?

A pilot's meeting was held in New Iberia last week....almost 90 pilots attended. No doubt the pilots shall strike....unless the company gets its head out.:ok:

Our colleagues in the GOM deserve respect and support in their endeavour to secure necessary and well deserved improvements in terms and conditions.

Both the pilots of PHI and AirLog made impressive improvements last time around, but still have a long way to go.

Their customers are in a position where they easily can afford the minute increases in the cost to running their oil fields which would be the result of a negotiated agreement between management and pilots at AirLog. Hopefully management will realize this before it is too late.

Strike breaking activity has been a last ditch effort throughouot history. It leads to bad blood between management, unions members and the strike breakers. The wounds take a long time to heal, if left unattended.

No one respects a strike breaker, who effectively risks ruining his reputation within his line of work for the remainder of his career.

Pilots contemplating adhering to threats from management should keep in mind that management would in effect be using scabs as expandable canon fooder in a dirty war. Later on, after the dust has settled, management and unions will at one point sit down to find ways to heal the wounds. The guys or girls who took a wrong turn during legal industrial actions would not be part of the solution.

Best of luck to colleagues in AirLog!

:* Thanks for the update SASless.
I'm sure I speak for most of the pilots in the UK N.Sea sector when I say that our colleagues in Air Logistics/OLOG have our total suport.

DON'T GIVE IN TO BULLY BOY TACTICS.

How can supposedly 'intellegent' business leaders say that a pay deal worth $8m will bankrupt a company, when, at the same time, they can give bonuses worth $18m to a few directors? Will those same directors give their bonuses back if the OLOG share price hits rock bottom because of their incompetence? I think not! Do they think we all all stupid?

WE WILL BE IF WE ALLOW THEM TO GET AWAY WITH ALL THIS SH*T YET AGAIN!

We work in support of some of the richest companies in the history of commerce: the oil companies.

WE hold them by the b***s. It is time we squeezed them instead of just providing support!:*

Full Support
 

Best of luck to all my collegues in the GOM.
Our combined management seems to be on a "self-destruct" mission, trying to treat us, the workforce as if there was no tomorrow.
By the way Bristow just lost another contract (Con Phil) in the Northsea to CHC.
Management still employed; not even under threat. :yuk:

As a former GOM'er (in the yellow helicopters), I sympathise with and support my colleagues at Air Log completely.
I have a hard time imagining what management expects to gain with their "bloody-mindedness." Pilots are a naturally independent and contrary lot. The management style employed by Air Log is what drives us to unite and emphasises the importance of standing by our brothers.

As Ben Franklin said "We must all hang together, or, most assuredly, we shall all hang separately."

Maybe all us guys should send our Resume's to AirLog in New Iberia....see what the pay and per diem rates are. That way they would have a few thousand recent Resumes to take to the Union...then a canvas could be done...compare pay...benefits...working conditions...see how it fits. I am 25% over starting wage for Air Log...even with the five years seniority they will grudgingly give you...have better health insurance...work fewer days....live at home on work days unless I am doing a 24...get a pension contribution that exceeds the Safety Bonus they want to take away at Air Log...gosh....maybe the company would catch on to the fact they need to improve the Gomer's Lot in life. I guess I could always commute 1200 miles each way to/from work...devote 10 of 14 days to work or commuting (they do not fly you to work).

Wonder if the company will discuss their turnover rate prior to the start of all this turmoil....I heard something like 300 pilots in 18 months....but do not hold me to the exact number. It was liken to the turnover rate for some of the worst trucking outfits in the US. That alone should be a mark of pride to the company...not being able to hold onto pilots.

PHI is on mandatory workover now....short of pilots already...Tex Air cannot hire enough to fill their vacancies...Air Log was short prior to the turmoil...heck...maybe pay will go up anyway.

Any news on the ballot result?

Talked to an AirDog guy night of the 24th....he said the vote was being tallied...final attempts to makes sure everyone that wanted to vote had done so. Tally will be done and results announced when complete. He reported pilots remain united...all informal polls showed very strong support for strike if required.:ok:

Final Tally of the Strike vote.....96.9% of the pilots voted "YES" to strike.

Best of luck
 

Well done; that should make a nice wake-up call.
Wish we could do something else to support you, apart from sending encouraging posts. :ok:

I am not an OLOG pilot...but have friends that are. The one thing that we all can do to help is to make sure the news...and continuing status of the situation is broadcast as widely as possible.

Take a few minutes to e-mail as many financial column editors, stock analysts, web based financial reporting sources as you can...when the OLOG Board sees the share/stock price heading for the cellar (and their stock options withering on the vine) then and only then will they wake up to what is going on.

My view of all this seems simple....just like the OLOG management. Fostering good relationships with the employees that produce the revenue pays better returns than merely lashing out with the whip. They are sticking to their Russian method of negotiating and have completely ignored the "Win-Win" model.:ok:

Here are the official results of the AirLog Pilot's Strike authorization Vote.
271 Ballots mailed out to pilots.
266 Ballots returned.
253 Ballots marked YES for Strike authorization.
8 Ballots marked NO for Strike authorization.
5 Ballots that were invalid for voting error.
The Union is still in negotiation, as we are not released for self-help. This vote give the negotiation team the support for the Pilot's contract position. Thanks for everyone support, it means a lot to us.

Many thanks to SASless and gomex!

96.9% is a fantastic result: it just shows that the guys have had enough! Lets hope the directors do see sense before its too late.

I'm sure all of us in the frozen north of Scotland wish you all well and offer whatever support we can to help out.:ok:

Scheduled meeting of the union, management, and the Federal Mediator on Wednesday....any bets on what happens?

Will the OLOG management get struck by Chain Lightning and have a change of heart and offer a meaningful compromise to the Union and thus settle this matter?

Will the OLOG bunch continue with their unyielding position and the Union cave in to that position?

Will the OLOG bunch ignore reality...hold forth on their Road to Perdition, the Union stand firm in their demand....and the Federal Mediator declare an Impasse....and a cooling off period begin?

Or.....will the mediator declare an Impasse and release the two parities from mediation?

Doughnuts to Dog Droppings....and you can hold the stakes in yer mouth....OLOG continues to stonewall...and the strike becomes a certainty! One man's opinion here....reason and logic will not play a part in the company position.:confused:

Here's my guess. The union (and perhaps even the company) will request release, and likely get it. This will start a 30-day cooling-off period, during which the real negotiations will be done. The agreement will be reached on about the 29th day of the cooling-off period. There is no perceived advantage to the company in caving in any earlier. Negotiations under the Railway Labor Act are settled then, and almost never prior to the deadline. The company could make a lot of good-will profit by settling earlier, but they aren't smart enough to realize that.

Look for the same thing to happen with the PHI negotiations which are scheduled to begin in just over a week.

I'm sure its been asked but I haven't seen the answer.

Is it possible to pass on what the old package was? It would make it a lot easy to make sense of what is going on.

If you see the African Forum thread Capers in Cameroon, perhaps the OLOG management will do something like the management of the airline there, only in reverse. Sack all the pilots, then claim they all resigned:sad:
There don't seem to be any good companies to work for any more. Globalisation is wunnerful innit?

Air Log Headed towards a Pilot's Strike?
 

The latest Notam from the Pilot's Union Collective Bargaining Agreement (CBA) team reports the end of negotiations with the company. The Union made its bottomline offer...the company refused to accept it or make a final compromise offer. The Union has asked the Federal Mediator to "Release" the union from negotiations due to the obivious stalemate.

My friends at Air Log report strike action is almost a certainty now....and is just a matter of time unless the company accepts the offer.

They also say it would take a lightning strike or something of that magnitude to return the senior management to the reality of the situation.

Does the management really believe the pilots will not strike over this?

Will the Pilots walk?

Should the Pilots walk?

If the pilots walk...who wins...who loses?

Does it always have to be Russian style negotiations where one side must win...and the other side must lose? Cannot management not find a way to form a win-win deal?

The estimated cost of accepting the full, original demand by the union was 8,000,000 USD...the previous year bonus pool for the senior 8 managers was 18,000,000 USD.....and the company stated publically the Union demand would bankrupt the company. That is the mentality of the management on this one.

:confused:

Whatever my colleagues at Air Log decide to do, they'll have what support I can give.

Will the pilots strike? My observation is that Air Log management has always had... "difficult" relations with the line pilots. That's the reason the pilots had to organize. That's the reason they were the first in the GOM to do so. My guess is the management style hasn't changed a bit. And that's the reason they'll feel like they have no choice but a job action.

Everybody loses.

It's a shame but it's not news. The only negative I ever observed in Air Log was this poisonous relationship between the field guys and management. A very good company besides that, but that's enough to put them at the bottom of a list of potential employers if I ever returned to the GOM.

SASless

If it's really true that the senior managers scooped a bonus of US$18,000,000 last yaer then for sure the pilots should walk. I've seen too many managers make a small fortune despite their incompetence over the last 20 years, while the guys that make the profits get the usual barbed-wire coated greased baseball bat.:yuk:

I think that the Air Log pilots will eventually have to walk. How else do they show the company that the vote to strike was a serious matter, not a laughing matter that meant nothing. At least that appears to be the way that Air Log is viewing the pilots vote to strike.

I know that the Union has made multiple efforts to get the company to the table for open talks in hopes of starting a geniune negotiation of terms. Unfortunatly, they would have the same luck with a stone wall.

Here is some additonal food for thought. I was talking to a PHI pilot and he said that their negotiations will be on hold until Air Log is able to work their new contract. Is this true, is PHI waiting to see how Air Log handles thier negotiations and the outcome?

I have also heard talk that ERA is now looking at Unionizing as well. Apparently, their retirement benefits are assualted as if they were a sleeper cell taking pictures of the Pentagon. At least that is how it was described to me.

Assuming that is true, then how much more is riding on the contract between Air Log and it's pilot's? In asking the question, I would want to know what both sides feels is at stake. Maybe this would explain the hard nose tactics Air Log has choosen to use, as it may effect every company. If your head is in the sand maybe this next sentence will pull it out. Do we not think that each operator will/is supporting the other behind the scenes if not publically? It seems all the drilling companies are questioning what will happen as well, so what type of support or pressure are they putting on the companies to keep their costs down (rhetorical question hence the little dot at the end). Last I checked there was only one variable to the cost of operating equipment and that was the operator of the equipment! I don't know any executive that will allow their bonus to be touched, as it is almost always viewed as their salary. Of course they are owed the money, while the rest of us have to earn our bonuses. How many people work hard for their safety bonus?

I think all the above makes it important for the pilots to stand together and push through the best deal possible, as it appears that this will effect the entire GOM. Obviously, it has to be fair to both sides, and I have yet to meet a pilot that is looking to put their company out of business. Seems to me most just want a fair wage and decent benefits to take care of their families.

What better way for everyone to see if the Union is a reality? I think the majority of the pilots flying in the GOM tend to be more conservative. On a hunch I bet it has something to do with living/working in the South and having military backgrounds. I believe that is why it took the area so long to Unionize and why part of it still non-Union. Surely the employers know this and I wouldn't be surprised if they saw this as an opportunity to break the Union and make it worthless. I hope, for the sake of those of us looking to start a career down there and wanting the best conditions possible everyone stands united and strikes if need be. Better yet, I hope the company comes to their senses and sits at the table to have an open discussion and start a real negotiation process. Either way I wish all the Air Log pilots good luck and know that you do have a lot of support out there.

:ok:

Gomexjr,
I don't want my Air Log colleagues to strike. They're organized because of this management style made them see their common cause and sacrifice independence and join together to face it. They can do as they see fit with legal sanction and recognition of their common interest.

If Air Log management sees this conflict as a matter of "face" and think they have "support" from other operators, the cause is lost and the company will fail. Air Log- the dynamic and enterprising operator- is dead if everybody isn't working together.

Pilots work absolutely on their own, and if they're not motivated to perform, they won't- and nobody on this planet can make them. We (pilots) know where the responsibility always ultimately lies, and know it's our decision alone, each and every time we launch. It's always a calculated risk that the pilot has to decide he's justified in taking- there's never a perfect day, or a flawless aircraft. That's the same no matter who's name is on the top of the check- there's squat to differentiate between the big 3 or 4 as far as the aircraft, pilot, job and customers are concerned. Who would I rather fill the seat for? The pilot jobs will be there, the aircraft requirement, too.

The effort a poorly supported pilot in an adversarial environment is willing to put forth to accomplish a customers' wishes is far less than, oh let's say- the guys in the yellow helicopters will put out. We- each and every line pilot- determines the quality of the contract and customer satisfaction. My customers regarded me as *their* pilot, in *their* aircraft, and we did *their* work. Every line guy in the Gulf "makes his bones" with the customer, and he is the operator as far as the customer is concerned. The pilot's never PHI (my former employer) or Air Log, until the end of hitch or a call for support. If I wasn't flying, it's because I couldn't do their job, and they knew as soon as I could go, we would go. New Iberia needs to consider the terms of their partnership very carefully before their cornflakes get any soggier.

I haven't faced to face with anybody on the Air Log line lately, but the rumors that I'm hearing are much more in touch with reality than the management position appears to be. They'd like to make a deal.

18 Million in Bonuses!!!!
 

Who said there's no money in aviation?

Devil 49 says it exactly right...as well written an explanation of the situation as I have read...shame the management at New Iberia cannot understand that concept. :ok:

Gomex Jr....also sets forth a good analysis...but I know from whence he springs....and I would expect nothing less. Gomex Senior has worked very hard to improve things for other GOM'ers.

Now we have conversation, and it would be great to hear from some of the men/women out in GOM and what their thoughts are.

Devil - I agree with you, as I don't want to see them strike either. I just don't know if it is avoidable at this point. Let's hope that it is.

ATPMBA- Of course there is money in aviation and always will be, just a question of when it will flow down the hill to the working men and women. The airliners seem to have done a much better job of starting that flow down hill that the rotor-wing sector. Hopefully that is changing or at least that is the appearence from my look out station.

Sassless - You are wise beyond your years and you do know exactly where or dare I say who I come from. I have been tainted but I have the utmost respect and admiration for my tainter.

I have always been one for a good conspiracy and was just wondering what everyone's thoughts on the "behind the scenes" talks were between operators. It appears that Devil and Sassless don't see a conspiracy:ugh: just bad management. I have to agree but like a good journalist I want to know if there is more to the story. Maybe I should send Jayson Blair to investigate and report back? Maybe we'll just get the straight dirt from some of those flying the GOM and not have to sit on the sidelines and speculate...guess time will tell.

Oh, I don't think there's any doubt that the operators are all coordinating with each other. Maybe not the CEO's (but who knows?), surely some of the more higher-ups who play golf together or go to the same church- it's not that big an area, after all and people do socialize. So there is back-channel communication going on, bet on it.

I guarantee that the operators are afraid of the "stair-stepping" of their respective contracts and want to nip it in the bud. They probably do not seriously believe that pilots would ever strike, which would be a drastic move to be sure. GOM pilots have historically been wishy-washy and weak-kneed when it came to standing up for themselves. I believe that the operators do not feel that this has changed much.

Taking the hard-line will fall to Air Log this time. But don't worry, PHI will be equally intransigent when their contract comes up soon.

There is a feeling among the operators that the pay for GOM pilots is "just about right." That is, just high enough to keep them coming back every week with an acceptable level of turnover, but not low enough to make them strike. They still do not perceive any need to increase compensation, and do not see any benefit from doing so.

While Air Log dreads even the thought of not being able to cover contracts and the attendant bad publicity that will come from "HELICOPTER PILOTS STRIKE!" headlines, they must pretend that they're not worried. They're doing a good job of this, and it plays well with the terminally-worried, nervous, and fearful for their jobs. But if this standoff continues, then the ALI pilots will be forced to play their hand (which is stronger than they think). If they cave, then it will prove to one and all that the compensation package in the GOM is "just about right" right now. And PHI pilots will all look at each other and go, "We're screwed."

We've come a long way, but there's still a long way to go.

It was said many years ago..."hang together...or hang separately!":ok:

With the price of oil at a 21 year high, with the oil companies at supposedly maximum production and demand higher than ever, is this not the time to give our employers an ultimatum?
The oil companies are making record profits (again!!) and it is their greed which holds down the contract prices for the aviation services they depend on. And let us not loose sight of that fact: THEY DEPEND ON HELICOPTERS.
Our employers, regardless of where we operate, are all talking to each other and are just as greedy as the client oil companies. (Remember the $18 million bonus to the Air Log directors!). OLOG are the 'owners' of the company I work for: their management techniques have travelled well across the Atlantic to the UK!!
I, like most of my colleagues, do not like the idea of strike action; but our fear is almost certainly less than that of the management. The very thought of disruption during the current economic situation is giving them sleepless nights; or it SHOULD be!!
Should the guys at AIr Log decide to withdraw their labour, they deserve the support of ALL of us. If they fail, we all fail!