Piper's financial ties to anti-gay Brunei stir up controversy, with Harris caught in crossfire

Vero Beach-based Piper Aircraft has come under scrutiny among gay right organizations because anti-gay policies instituted by the government of Brunei, which has ownership interest in the company.

Vero Beach-based Piper Aircraft Inc. has become embroiled in an international controversy, as a result of its ownership by the government of Brunei, which has just implemented a harsh new law that punishes sex between men and adultery with death by stoning.

Also caught up in the controversy is Melbourne-based Harris Corp., which is in the process of merging with New York-based L3 Technologies Inc. A unit of L3, called L3 Commercial Aviation, just placed an order for up to 240 new Piper aircraft, which is the largest civilian fleet order in Piper's history.

More:Vero Beach's Piper Aircraft receives largest civilian order in its history

Some gay-rights groups are denouncing the connection between Piper and Brunei, a tiny nation located on the northeast corner of the Island of Borneo in Southeast Asia.

The Space Coast Lesbian, Gay, Bisexual, Transgender and Allies Democratic Caucus issued a statement Friday calling on Piper to "denounce Brunei's barbaric policy to stone LGBT people to death."

More:Piper Aircraft has nearly doubled its workforce since 2014 layoffs

In a joint statement, Space Coast LGBTA Democratic Caucus President Daniel McDow and Florida LGBTA Democratic Caucus President Stephen Gaskill said: “News of Brunei’s new policy to stone LGBT people to death has been met by an unfortunate silence from Piper Aircraft, which is based in Vero Beach.

There’s no question that this law is barbaric, and it’s past time for Piper Aircraft to speak out publicly against what Sultan Hassanal Bolkiah has called a ‘great achievement.’ Remaining silent on these vile human rights violations is a tacit endorsement. Piper’s LGBT customers, employees and partners need to hear from Chief Executive Officer Simon Caldecott. Now.”

Meanwhile, Cortney Thompson, president of Space Coast Pride, an advocacy organization for Brevard County's LGBT community, called on Harris to cancel the plane deal between L3 and Piper.

"It would be the right thing for them to do," said Thompson, whose organization is reaching out to Harris representatives for clarification of the company's stance on this issue.

More:Shareholders overwhelmingly approve merger of high-tech giants Harris, L3 Technologies

While Harris and L3 Technologies stockholders on Thursday approved the merger of the two companies, the merger is not expected to close until the middle of the year. It is subject to satisfaction of various closing conditions, including receipt of regulatory approvals.

Harris spokesman Jim Burke said among the entities that must give their approval to the merger are the U.S. Department of Justice and the European Union. The U.S. Department of Defense also will review the deal.

More:Piper Aircraft sees 'exceptional year' for 2018 production, sales

So, at this point, Harris and L3 remain separate companies.

Burke said Harris does not comment on the business activities of other companies, a reference to L3 and Piper.

More:A very good second-quarter earnings report for Harris Corp.; merger with L3 Technologies proceeding as planned

L3 said it was reviewing a request from FLORIDA TODAY for comment on the matter.

Jackie Carlon, senior director of marketing and communications for Piper, said that, while "the shareholder of Piper Aircraft is the ministry of finance of Kingdom of Brunei," and "we're very, very aware of" the policy in Brunei, "I can't control what they do in their country."

Carlon said Piper has "this mutual respect policy that protects individuals of all races, denominations, sexual orientations — whatever background they might be. We employ over 1,000 people of all backgrounds and sexual orientations. We have a lot of employees of different sexual orientations. We are proud of them, and proud they're part of our team." 

Sultan of Brunei Haji Hassanal Bolkiah is accompanied by his son Prince Abdul Mateen, left, as he arrives for a Asia Europe Meeting (ASEM) at the European Council in Brussels on October 18, 2018.

Carlon described Piper as "an inclusive and diverse company. We want all employees to feel included, respected and valued, regardless of what their sexual orientation is."

Carlon said Brunei currently doesn't profit from Piper's business, but rather reinvests the profits back into the company. 

"Our owners have pumped virtually every single penny back into our company to make this company successful," Carlon said.

Harris ranks high on LGBT issues

Harris has been recognized nationally and locally as a supporter of the LGBT community.

The Human Rights Campaign recently awarded Harris its highest rating of 100 in the 2019 Corporate Equality Index for the fourth consecutive year — naming the company one of the “best places to work for lesbian, gay, bisexual, transgender and queer equality.”

The rating was based on a variety of practices and policies, including such things as non-discrimination workplace protections, domestic partner benefits, transgender-inclusive health care benefits, competency programs and public engagement with the LGBTQ community.

More:China buys 50 Archers from Piper Aircraft in Indian River County

Thompson said Harris is among the largest corporate supporters of the Space Coast Pride Festival and Parade, contributing a total of about $30,000 during the last 10 years.

"We want to continue a relationship with them," Thompson said.

But, if Harris does not take action related to the plane purchase involving Piper, Thompson said, the Space Coast Pride organization would not accept or apply for future funding from Harris.

"I think they have a decision to make," Thompson said. "They have to take a stand that they don't support what's happening in Brunei."

More:Vero Beach's Piper Aircraft receives largest single trainer order in company's history

Forbes magazine ranks Brunei as the fifth-richest nation in the world. Its economy is dominated by production of oil and liquefied natural gas, and its population is smaller than Brevard County's.

Thompson said, regardless what happens, the Space Coast Pride would not protest or seek ways to block the merger of Harris and L3. Thompson said Harris is supportive of its LGBT employees, and Space Coast Pride does not want to do something that could negatively affect employment at the company.

A Piper Archer airplane.

When the Harris-L3 merger is completed, the combined company — to be called L3 Harris Technologies Inc. — will be based in Melbourne.

Harris is among Brevard County's largest employers, with about 6,800 local employees. 

With a stock deal valued at $33.5 billion — based on the stock prices when the deal was announced — it's expected to be the largest merger in defense industry history. L3 Harris Technologies will be the nation's sixth-largest defense contractor.

L3 Harris Technologies also will become the eighth-largest company based in Florida, according to current Fortune 500 rankings.

Gay pilot group reacts

Meanwhile, on Tuesday, National Gay Pilots Association President David Pettet sent a letter to Caldecott, Piper's president and CEO, calling on Piper to condemn Brunei's anti-gay laws and to support the LGBT aviation community. 

"As an airline captain for the world's largest airline, and someone that learned to fly on a Piper aircraft, I'm incredibly disappointed that we're seeing this hatred in 2019," Pettet wrote.

On Friday, Pettet gave his association's members an update via a Facebook post. 

"Today, we received a letter from Piper Aircraft Inc. CEO Simon Caldecott in response to our letter dated April 2, 2019," Pettet wrote. "Mr. Caldecott stated their inclusion policies in his response and confirmed that, while they are owned by the ministry of finance of the government of Brunei, they are separate in their operational practices.

"Unfortunately, in his response, he did not state his direct support of the lesbian, gay, bisexual and transgender community, nor did he condemn the actions of the government of Brunei. I have asked for this yet again in my response."

May, 1977 - An aerial view showed Piper Aircraft and the Vero Beach Municipal Airport.

Pettet said his organization also has identified ways for Piper to improve its policies that are designed to support the LGBT community.

"The CEO has invited and welcomed NGPA to come onsite to meet with him, members of the Piper Aircraft leadership team, as well as their employees," Pettet wrote. "We intend to continue working with Piper Aircraft going forward, which will hopefully include us releasing a public statement on their behalf in support of the LGBT community in the near future."

"Your voice is working," Pettet told his members. "We asked you to get loud, you did, and we’ve been heard."

In this 2012 file photo, a Piper Aircraft. is on the final assembly line at the Vero Beach-based aircraft manufacturer.

In his follow-up letter to Caldecott, Pettet wrote: "I can appreciate in your position that you must run a profitable and innovative company in order to be successful in the industry and ensure future stability and success of your employees. As you state and referenced the government of Brunei as the reason for the financial success and investment of Piper's future, human lives should not be at the expense of it. I promise you that standing up for what is right will always be the best business decision."

"You and I were not hired to make easy decisions," Pettet wrote. "We are in leadership because we make the right decisions, whatever the cost."

Piper has about 1,000 employees, and is Indian River County's largest manufacturer. Its employment is up from 650 in 2012, when the company amended its incentive agreements with the Florida Department of Economic Opportunity and Indian River County. Combined, the Florida and Indian River County economic development incentives totaled $10.6 million.

L3 Commercial Aviation ordered the Piper aircraft to expand and modernize its aircraft training fleet across its Airline Academy pilot training sites in Florida, Portugal and the United Kingdom. 

Dave Berman is government editor at FLORIDA TODAY.

Contact Berman at 321-242-3649

or dberman@floridatoday.com.

Twitter: @bydaveberman

Facebook:  /dave.berman.54

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