Type
Internal restructuring
Country
Norway
Region
Norge; Vestlandet;
Location of affected unit(s)
Bergen, Florø
Sector
Transportation / Storage
Land, Water And Air Transportation
Air Transport
51.10 - Passenger air transport

100 - 160 jobs
Number of planned job losses
Job loss
Announcement Date
13 January 2017
Employment effect (start)
1 March 2017
Foreseen end date
1 May 2017

Description

At least 100 employees will lose their jobs as CHC Helicopter Service is set to close its bases in Bergen and Florø, Norway, after losing a major contract to a competitor. From 1 May, CHC will no longer fly to offshore installations in the North Sea from its base in Bergen, as competitor Bristow takes over a five-year contract. CHC will consequently close its base in Bergen and also its smaller base in Florø. Administrative functions will be moved to CHC's other locations in Sola and Stavanger. In excess of 100 employees will no longer have a job in Bergen, while 14 jobs will be cut in Florø. Based on seniority, employees from Bergen will be offered work at other bases in Norway. This will lead to dismissals also at other locations, as a net staff reduction of around 100 employees is necessary. Some senior employees will be offered early retirement packages.

Trade union representative Hans Petter Jensen in CHC says the cuts are regrettable and hard on those affected, and the union is especially concerned about those with low seniority who will now lose their job. CHC currently has almost 400 employees in Norway, about a hundred less than in 2015. After the upcoming round of downsizing, the company plans to retain about 260 employees. The staff will thus be nearly halved in two years, a development which is due to the downturn in activity in the petroleum sector and the recent loss of the needed five-year contract in Bergen.


Sources

  • 13 January 2017: Bergens Tidende
  • 13 January 2017: NRK
  • 12 January 2017: Firda

Citation

Eurofound (2017), CHC Helikopter Service, Internal restructuring in Norway, factsheet number 90157, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/90157.