NJA STRONG UNION NEGOTIATOR SUMMARY-Part 2

abenaki

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Part 2 of Tom Gasta's negotiations summary:

"Lets talk about “BM’s” statement about the costs of proposals. The “Union” never stated that we would rely on the Company cost proposals when it came to our positions in bargaining. We said that we really didn’t find a need, as we knew what our proposals cost. And at every meeting, we were proven correct, eventually, when the Company finally told us what they cost in their eyes. On Monday, the Company Mr. Okey abruptly claimed that Joe Arton didn’t know the cost of our proposal on retro. After Joe politely informed Okey that he was “mistaken”, and that he was being a gentleman and not tearing apart their financial analyst’s cost figures, to save her embarrassment, he told them that the retro was just over $400 million. However, Mr. Okey defended the Company position that it was $490, but then they decided, no, it was $440. On Tuesday, at a recurrent class of 60 pilots, Mr. Boisture, in his one minute presentation stated that it was $400 million! WTFO? And because of my previous post on the board, “BM” now, on today’s propaganda page seems to agree with the “Union’s” costing of the retro, and uses it in their calculations. Is anybody getting a little bit of a clue as to why we really don’t want or need the “Company” costs? I already talked about the savings generated for the Company in so many areas of the TA that mysteriously doesn’t get into the Company Costs figures!

“BM” posted several figures as far as our wages, current and proposed stack up. I suspect Joe may make more comments on this, but lets look at some realities. “BM” states that under the current contract that our salary would be $451 million over the next three years, versus, $854 million that we have proposed. This is a difference of $134 million per year. But what “BM” always seems to forget is that the pilots are working on a pay scale that has not seen a cost of living increase in 7 years. A pilot coming to work here today is working at the exact same wage as a pilot was paid in October of 1998 on his first day. A pilot who came here after the 1998 contract was reached is working for the same 7th year pay that a pilot who was here at the time was making when he was on his 7th year. I wonder, has the starting pay for Dispatchers, Secretaries, Schedulers, linemen, and yes Presidents gone up over the last 7 years? Not for pilots! And best of all the Company has been collecting MILLIONS of dollars over the last 7 years from owners. 3.75% more for the last several years, slightly less prior. Not one dime of those Management Fee and Hourly Fee increases over the last 7 years has found its way into the pay scale that pilots are working on today. Yet in Company literature, Management Fee’s are supposed to be used, along with other things, for “Pilot Salaries”. So later when “BM” says the “Union” says, “you should of prepared 3 or 4 years ago”, he is wrong. They should have prepared SEVEN (7) YEARS AGO! So what would be our “Current wage scale” if about 24%, compounded annually would have been put into the scales over the last 7 years? I suspect that our current “BM” estimate of $451 million over the next three years would be much, much higher, and a whole lot closer to the “Union” demands. And remember, over the next three years, the Company is still collecting that good ole 3.75%, “for Pilot Salaries!”

$1.299 Billion dollars is what “BM” now calculates is the cost over 3 years. Big number for sure. In 1998 we had a few hundred pilots, we now have close to 2200, the number will be big, especially when we are now attempting to claim the prize money Santulli promised to the pilots over the last 12 years. It is a big number when pilots are now asking to be paid what the best of the pilots flying the same aircraft for Fortune 500 Companies are already getting paid. Considering we do 5 times the flight hours, 7 times the nights away from the family, go to a thousand airports with 100o different personalities to know and attend to (the owners), to handle them as if they were the only people we ever flew, yes, we think we deserve it, and when you are the lowest paid in the EJA manufactured industry, it will cost BIG Dollars to finally keep the promises!

Q and A time.

How can the Company afford “three times current payroll”.

Answer: First, the payroll is only 2 times as much, but “BM” knew that, he simply wants to dazzle you. The three times comes with the Retro pay. Retro is a simple thing. If the contract should have been renewed in 2001, then that’s when it should have been done. Instead, we have been working for 4 plus years now without the increases that should have been there in 2001. Considering the earlier discussion that we didn’t receive COLA for 7 years, what the Company would like for us to do is once again, is work for free. Much like the thousands of free extra workdays we gave away over the 7and 7 violation of the contract, the Company would like us to reward them with 4 years of work with no pay increase, to encourage them next negotiations, to take as long as they want, no problem, we will work for free! Not going happen Santulli, forget about it. As explained above, yes, the Company has used MILLIONS of dollars of COLA and pilot increases to fund other great money losing adventures around the world. But now, as of Tuesday, tell us that they have all the “Capital and Cash Flow” to fight us, to waste on sell-offs, and to give to disgruntled owners when they come looking for the money back on purchase cost of their share. They will need to give away free trips to that Marquis deal as make up for flying them on “Fleets not by NetJets”. Yes, Santulli should have dang well prepared, prepared to keep the promise. And it is clear by the words of Santulli coming from Boisture’s mouth, “we have the cash flow and the capital”, oh really?"

"Does the pilots understand the impact of their demands and lack of “financial review”?

Why yes, I believe they do. They have told us, overwhelmingly, that it would be a sham of Enron and Worldcom proportions. And, with the latest stance by Woodbridge and their statements of unlimited money to fight us, it is clear we and the pilots are correct about the real value of this Company.

End of Part 2
 
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gunfyter

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“BM” always seems to forget is that the pilots are working on a pay scale that has not seen a cost of living increase in 7 years. A pilot coming to work here today is working at the exact same wage as a pilot was paid in October of 1998 on his first day. A pilot who came here after the 1998 contract was reached is working for the same 7th year pay that a pilot who was here at the time was making when he was on his 7th year. I wonder, has the starting pay for Dispatchers, Secretaries, Schedulers, linemen, and yes Presidents gone up over the last 7 years?

I also would like to point out that in addition to there being NO Cost Of Living increases...

The 1998 wages are for Citation S-IIs. We have had NO ADJUSTMENT to recognize the fact that we are flying Falcon 2000's , G200's and Citation X's etc.

A simple COLA adjustment is not adequate to address the need for increase. Unless you want to adjust the 1998 NBAA salarys for a Citation X (Which I think was around 95K then) . Adjusting 1998 S-II salarys is not sufficient.
 
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