NetJets Unrest Puts Warren Buffett in a Rare Pinch

[Hawkered]

I agree that it isn't wise to ignore small issues and let them grow into larger issues. That applies here to NJ. The answer is still the same though. If WB thinks the problem will spread he would jettison NJ without a second thought. And the impact on BH financials would be negligible.

While Goldman Sachs has the capital, as does GE, which Gunfyter mentioned, neither of these companies comes close to the reputation and cachet that WB brings to the table. It's also worth noting that both of those companies came to WB for capital infusions at the height of the financial crisis in 2008.

I can not think of any buyer that would measure up to WB in terms of recognition and respect within the owner base. If NJ were to be sold (which I think is a very remote possibility), then you can expect to see many owners reconsider their decision to use NJ.




Now that is a scenario I'd love to see, although I think that is extremely remote. NJ needs a leader who is passionate about aviation, cares about the employees, and has strategic vision. JH strikes out on all three counts.

He had a chance, he could have been a Herb Kelleher, (who is also a lawyer) but he chose to take the path of his stupid text books from law school that have been the same path that tore this country apart!!

 

[OPECJet]

You all are getting wound up over a big misconception. Netjets does not have a labor problem. It has a management problem.

 

[Sky Captain]

I am not saying I have a solution. What I am saying is that the pilots union should not assume that BH MUST eventually settle to save the business.

If this is true, that was WB and JH plan two years ago when they chose NOT to extend current contract to 2016 (an option limited only to NJA management and not the pilots), chose to file the paper work to start negotiations EARLY, and to negotiate ONLY for concessions instead of a mutually beneficial contract. So the 2 possible outcomes from management's perspective was that the pilots swallow a concessionary contract OR let the business die.

This is a "labor problem" initiated by BH, WB, and JH with 2 terrible conclusions. Unless they change their mind and settle with the Union to save the business.

 

[Sky Captain]

I consider, and many of my colleagues also, the union to be a major threat to NJA pilots' job security. Nothing cavalier about that.

There has been a Union on property WAY before Santulli, way before BH, and WAY WAY before you joined the ranks. The pilots and it's Union are the only CONSTANT in the equation. The VARIABLE is the management team and the only major threat to NJA pilot's job security. You and your colleagues need to educate yourself on who initiated the "labor problems". It wasn't the pilots.

How we got to where we are today comes from steps taken by the management team NOT to extend contract (status quo means no labor problems), requesting to start negotiations EARLY (starting the process means they had a plan), and putting out a concession only package (first punch drew first blood). They, the management team, weighed the outcomes of their decisions and have continued down the path of mass destruction. This is a MANAGEMENT PROBLEM. Pilots (Labor) are just defending themselves from the fight and punches being thrown first by WB and JH.

 

[Hawkered]

You all are getting wound up over a big misconception. Netjets does not have a labor problem. It has a management problem.

Correct!

 

[G4dude]

There has been a Union on property WAY before Santulli, way before BH, and WAY WAY before you joined the ranks. The pilots and it's Union are the only CONSTANT in the equation. The VARIABLE is the management team and the only major threat to NJA pilot's job security. You and your colleagues need to educate yourself on who initiated the "labor problems". It wasn't the pilots.

How we got to where we are today comes from steps taken by the management team NOT to extend contract (status quo means no labor problems), requesting to start negotiations EARLY (starting the process means they had a plan), and putting out a concession only package (first punch drew first blood). They, the management team, weighed the outcomes of their decisions and have continued down the path of mass destruction. This is a MANAGEMENT PROBLEM. Pilots (Labor) are just defending themselves from the fight and punches being thrown first by WB and JH.

Agreed. But the results, it seems to me, of the union hardball could very well be a loss of a lot of pilot jobs, which would be a bad thing. Don't results, instead of emotion, matter at all?

 

[G4dude]

you found someone that will pay you to be an idiot? Impressive

I am many things, but an idiot? Sorry, no. Are you trying to gently suggest we disagree on a few points?

 

[shanes123]

G4 so do you think that NJ pilots should agree to concessions while the company is making record breaking profits?

 

[G4dude]

G4 so do you think that NJ pilots should agree to concessions while the company is making record breaking profits?

No, and good question. I think negotiations should be intense but private, not including embarassing a long suffering owner like Warren. And always keep an eye on our continued profitability, or we will go away, probably sold to a Ricci type over at FLOPS. The record breaking profits you cite are only barely normal for other companies in other industries. They are only "record breaking" for us because our financial perfornance has been so anemic for so many years. If I were a shareholder in Berkshire, I would not want NJA as part of the mix. Especially with labor unrest from several unions.
Maybe Santulli will buy us. I bet he would not be as generous as Warren in the long term. And probably more unfriendly to the unions.

 

[realityman]

Agreed. But the results, it seems to me, of the union hardball could very well be a loss of a lot of pilot jobs, which would be a bad thing. Don't results, instead of emotion, matter at all?

What kind of ball do you think the union should play?