Accusations Of Bad Faith Bargaining Still Under Review

Helicopter operator PHI released a statement Thursday regarding the hearing conducted January 11, in the US District Court for the Western District of Louisiana. The statement's wording implies the union's unconditional offer to return to work may not have been so unconditional.

It read, in part, the Office and Professional Employees International Union (OPEIU), the body representing the union pilots who struck PHI last September, sought injunctive relief from the court because of "PHI’s handling of the return to work of striking pilots following OPEIU’s purported 'unconditional' offer to end its strike."

PHI says it reached an agreement with OPEIU in court on a return-to-work process for the approximately sixty pilots still awaiting reinstatement. It described a phased-in process to bring pilots back by groups, and then by aircraft type as determined by PHI, and then by seniority. The company says the process is consistent with the methodology it's used to reinstate union pilots who broke the strike and offered to return to work individually.

The agreement sets January 29, 2007 as the start date for PHI to begin reinstatement of the remaining pilots. The company's statement says pilots can expect to be back at work by April 29, 2007, although PHI warns processing of those requiring flight simulator training at third-party training facilities may extend the process.

According to the release, other issues surrounding PHI’s allegations the union engaged in bad faith bargaining, as well as the union's counterclaims, remain outstanding and are to be addressed by the same court.

The company claims it's seen greater success in hiring new pilots since it instituted a wage increase following failed negotiations with the union. It also says "a substantial number" of pilots broke the strike and returned to work voluntarily.

PHI claims it suspended new pilot hiring on November 10, 2006, when the union ended the strike with an unconditional offer to return to work. It says it's resumed new-pilot hiring, while also processing union pilots awaiting reinstatement, to account for new aircraft added to its fleet.

The company's statement read, in part, "Although the last several months have been difficult, our customers have been very supportive throughout this process. Additionally, it has been the dedication of PHI’s flight crews, maintenance crews, and support staff that enabled us to maintain high safety standards and customer service throughout these difficult months. They have demonstrated an attitude and work ethic that we will preserve going forward in all aspects of our safety and service goals."

PHI says that although its financial statements have not yet been audited, it estimates a 2006 fourth-quarter loss in the range of $0.32 to $0.36 per share on a fully diluted basis because of the strike and weather.

FMI: www.phihelico.com