NetJets Unrest Puts Warren Buffett in a Rare Pinch

[msculley6905]

I keep hearing that the pilot group was wanting to extend the current contract a few years ago and it's management's fault for opening it up. My only question is, why is the contract subpar now, but not then?

 

[Pervis]

I keep hearing that the pilot group was wanting to extend the current contract a few years ago and it's management's fault for opening it up. My only question is, why is the contract subpar now, but not then?

Nearly eight years into the current CBA without COLA and you need to ask that question? Unwavering demands for concessions in spite of record profits and you need to ask that question?

 

[FamilyGuy]

Nearly eight years into the current CBA without COLA and you need to ask that question? Unwavering demands for concessions in spite of record profits and you need to ask that question?

Just curious on the concessions that Jordan is demanding. Obviously that is a tough sell when the company is reporting excellent financial results.

Jordan claims they need these concessions to be 'more competitive'.

If I was at the negotiating table, I'd simply ask Jordan for the last four years of his W-2's to see how much money he has given back to the company to make it more competitive.

 

[FamilyGuy]

The BIG mistake I see in the strategies of both sides is that BOTH management and the union are doing a fine job of alienating the owners. I do not see that as a good result for either side. I do know that the owners will land quite fine and have good, safe private jet aviation alternatives.

In 2006-2007 RTS and the NJA marketing machine had owners convinced that NJA was the only game in town and owners, as a group, had immense loyalty to RTS/NJA. Now most of that loyalty is gone and there exists serious and good competition to NJA (the market is to be viewed as private jet aviation not just fractional ownership).

Excellent points.

RTS always understood that he couldn't be the cheapest provider, and he didn't want to be. That's why he focused so heavily on the sales and marketing side. The results spoke for themselves. As you noted above, NJ dominated the marketplace.

Unfortunately that lesson appears to be lost on the current leadership team. Jordan is focused on competing on price, which has precipitated a race to the bottom that he cant win.

NJ right now is coasting on the laurels and reputation that RTS built. How much longer that can last is anyone's guess.

 

[Pervis]

The company in all its benevolence reduced the monthly management fee to a 2.5% annual increase. The annual raise to captains until year 14 amounts to about $500/month. A fraction of the monthly management fee. FOs fare much worse. Many are now capped and will see no further increases while the management fees continue to rise.

Our salaries come from management fees. Even without COLA, our goals of a significant increase have already been paid for. One reason for concessions is to provide WB with greater returns, while the next breath suggests reducing fees to attract lower level bazillionaires-on our backs. Sorry Charlie. We simply want what we earn. How many pax go from one city to another because of JH? Let me answer that. Zero.

 

[realityman]

NJAOwner,

There is no work slowdown. Everything you are experiencing is a result of management's poor decisions.

The planes are getting old and aren't receiving the care planes of their vintage need to remain reliable. Basic things are being left undone until the last minute when the pilots step in and find themselves in a position where they need to fix it, but it may cause delays. For example, a plane goes into maintenance to have something repaired. When finished, it's scheduled for a passenger trip. The pilots are sent to the plane, and during preflight discover it needs oil and the oxygen serviced. Oil isn't too bad, but oftentimes it isn't easy to get someone to service the oxygen depending on location, day of week, and time of day. Passengers may find themselves delayed while the crew tries to get these things taken care of. The thing is, prior to this EMT, when a plane went in for any kind of maintenance, the mechanics were authorized to fix some things they found, including service items like oil and oxygen, so when a crew got there the plane was ready. This EMT has taken that authority away from the mechanics, and they have been told to fix ONLY what the plane went in for. Short term savings at YOUR expense of a delayed trip. And it looks like a work slowdown by the pilots.


In addition, they have fired at least one pilot for not writing something up, and disciplined others for supposedly writing too many things up. What are we supposed to do? At least for me, I will write up any and all discrepancies, no matter how small and insignificant, when and where I find them. This may appear to be a work slowdown, but I am protecting my license, career, and livelihood because if I'm going to be fired for something I'd rather it be for regulatory compliance so I at least depart with my license intact. Make no mistake, the company has put me in this position, not the union asking me to inconvenience you. It's not a work slowdown.

They are running us ragged out there. We're flying more, over longer duty days, with declining quality of rest accommodations and food. I have found it necessary to call fatigued more often than I ever have. It's not a work slowdown. I'm trying to protect my life, my partner's life, and yours. Sorry you'll be delayed. But would you rather be the Mr. Owner who was late, or the late Mr. Owner?

Finally, you and the other clients are our lifeblood. We, the pilots have not forgotten this, no matter how it appears. Nor has the union. Very sorry you're caught in the middle. Sadly, you need only look at other unionized operators with very good contracts to see how this will go. I absolutely HATE that it has to be this way, but unfortunately the only way we will prevail is when it becomes more painful for them to not give us what we want than to give it to us. I would prefer that you and our other clients stay with us, but if enough of you move on as a result of all this then the company will be back at the table to resolve this contract. Sucks for everyone, and I'd greatly prefer not doing that kind of damage, but this management team is following the same lousy path that has been traveled by most other unionized negotiations. Even RTS didn't come to the table with a good offer until we had lost 16 full aircraft worth of clients (his words).

I truly believe Netjets can recover from this damage, but it's going to require getting this done and more importantly, getting leadership with some vision and the ability to provide our clients with the value they expect for the money they're spending.

 

[Diesel]

Ps good on the father to show his daughter what standing up for what you believe in is right.

 

[msculley6905]

Nearly eight years into the current CBA without COLA and you need to ask that question? Unwavering demands for concessions in spite of record profits and you need to ask that question?

I'm obviously not a pilot, so forgive my ignorance, but COLA weren't in the last contract? And if not, why is that the company's fault?

What concessions other than helthcare are they asking? Everything we're told is that payscales (different than total compensation, i know) has not been asked to decrease. Not trolling, just truly wondering.

 

[Hawkered]

Ps good on the father to show his daughter what standing up for what you believe in is right.

She's not an employee or a union member, nor is she of age. Had no business being there!

 

[realityman]

I'm obviously not a pilot, so forgive my ignorance, but COLA weren't in the last contract? And if not, why is that the company's fault?

What concessions other than helthcare are they asking? Everything we're told is that payscales (different than total compensation, i know) has not been asked to decrease. Not trolling, just truly wondering.

Regarding your first statement, it is not the company's fault. There has been a learning curve for the pilots when it comes to CBA's. Also, we had a much better relationship with RTS (although he wasnt prone to "giving" us good things in our contract either) so it was difficult (and shortsighted) of us to envision a Netjets without him, instead dealing with an overtly hostile EMT hellbent on dragging this out forever and finishing with us having a worse contract.

About your second paragraph, there are plenty of things they want to take from us. However, to be clear, they have said they want us to take a 5% pay reduction. Yes pay, not compensation. If we were to accept everything they wanted our total compensation reduction would be far greater than 5%. But they have definitely stated they want a pay reduction as part of the total compensation reduction.