No Labor Agreement Reached
PHI tells ANN that no
agreement was reached this week in the last round of mediation in
Washington, D.C., convened to resolve the labor dispute between PHI
and the OPEIU, which represents PHI's domestic pilots. The Company
has been in negotiations and mediation with the OPEIU over a
renewed labor agreement since February, 2004.
The Company also reported that negotiations broke down over 'the
union's insistence on unreasonable economic demands, and other
issues on which the parties were far apart.' PHI reports that the
union walked out of the talks shortly after 11 pm EDT on Sunday,
August 27, which was the last day of the cooling-off period.
PHI has announced, effective immediately at 12:01 am EDT, August
28, 2006 that it has now implemented substantial economic
improvements for its pilots, consistent with its final contract
proposals made at the bargaining table.
PHI claims that the union, 'over the past two years, has
often stated that PHI pilots were among the lowest paid in the
industry. These claims ignored the fact that PHI repeatedly sought
agreement from the union during this period to allow the Company to
provide interim economic relief to its pilots and their families,
without prejudice to the union's bargaining position in ongoing
negotiations toward a final labor agreement. The union consistently
rejected the Company's request, as well as its requests to allow
the issue to be voted on by the pilots. As soon as the mediation
process and cooling-off period ended, which freed the parties from
their status quo obligations, the Company immediately applied its
enhanced wage and benefit proposals, which reflect an economic
package equal to or better than PHI's primary competitors in the
oil and gas and air medical services segments of the helicopter
service industry. Indeed, the Company's implemented final offer
included wages and benefits superior to those that the same union
had recently negotiated with PHI's main business unit
competitors.'
In the final analysis,
PHI claims that it "could not agree to the union's irresponsible
demands because they were not in the overall best interests of the
Company or its employees, including its pilots. The fundamental
disagreement is and has been between the Company and the union, and
not between the Company and its pilots, who will soon see and
benefit from the economic improvements the Company has implemented
today."
Despite the union's threat that it is preparing to engage in job
actions against the Company and its customers during the hurricane
season, PHI, with a firm contingency plan in place, is committed to
doing everything reasonably necessary to maintain operations at
normal levels. Maintaining flight safety and meeting customer
requirements will at all times remain the Company's highest
priority.