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Overview of NetJets TA

Grizz

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Here's the overview of the TA that our leadership put out this weekend. Hope this answers some of the questions folks are having.

Fellow Crewmembers,

You must all be commended for your efforts and contributions made to collectively enhance our wages, benefits, and working conditions. Many will be pleased with the Tentative Agreement, however we must recognize and respect others will be disappointed. I can say with confidence there is no utopian flying job and this Tentative Agreement is far from utopia or perfection. But, the new Tentative Agreement has been enhanced in comparison to the previously rejected 2004 Tentative Agreement. Many will say enhancing the 2004 TA does not mean all that much because the previously rejected agreement was “all bone,” and they would be correct with that statement. The new Tentative Agreement has meat on the bone although we will all recognize the portions are not excessive; nonetheless it’s not “all bone.”

Scope:
All existing fractional flying, expansion, and new programs (such as card programs) will be flown by NJA pilots covered by this Agreement. Sell-offs are contained in a way that protects NJA pilots from furlough during sell-offs. A metered sell-off approach will allow the business to increase sales and market share while adjusting for demand during high demand periods, at the same time NJA pilots secure all flying resulting from growth. In addition existing and all future flying involving partnerships attached to the NetJets brand name, functional control, or 20% or greater controlling ownership interest will be flown by NJA pilots covered by this agreement.

New Captain and First Officers positions on Gulfstream IV, V, or derivatives thereof at NetJets International will be shared between NJA and NJI pilots. Three years after ratification the IBT has secured unrestricted rights to execute a Single Carrier petition with the NMB. The Union has successfully removed the indefinite Gulfstream “exemption” which was provided in the 1998 CBA. In the event the NMB rules in favor of the Union the IBT will control the NJA and NJI pilot integration and the subsequent amalgamation of wages, benefits, and work rules which must be executed in an equitable manner.

Wages:
Wages have been enhanced but still fall short of exceptional. The enhancements fall within striking distance of the Wilson Center for Public Research Surveys. In both surveys the pilot group was asked what their acceptable level of annual earnings would be on their W2 statement. In other words, what is an acceptable level of gross (total: base guarantee, overtime, holiday pay, etc.) pretax earnings?

Wilson Center January 2005 Survey:

1st year First Officer: $42,000
5th year First Officer: $65,000
1st year Captain: $65,000
5th year Captain: $102,000

Wilson Center September 2005 Survey:

1st year First Officer: $41,200
5th year First Officer: $65,400
1st year Captain: $65,100
5th year Captain: $102,600 final results (preliminary results approx. $105,000)

Tentative Agreement:

1st year First Officer-guaranteed base wage:
Normal (7 and 7) Schedule: $39,000
Reserve (18 day) Schedule: $46,300
Bypass (7 and 7) Schedule: $39,000
Bypass (18 day) Reserve: $46,300

5th year First Officer-guaranteed base wage:
Normal (7 and 7) Schedule: $47,400
Reserve (18 day) Schedule: $56,200
Bypass (7 and 7) Schedule: $61,000
Bypass (18 day) Schedule: $72,300

1st year Captain-guaranteed base wage:
Normal (7 and 7) Schedule: $52,000
Reserve (18 day) Schedule: $62,300

5th year Captain-guaranteed base wage:
Normal (7 and 7) Schedule: $90,000
Reserve (18 day) Schedule: $106,800

10th year Captain-guaranteed base wage:
Normal (7 and 7) Schedule: $106,000
Reserve (18 day) Schedule: $125,800

15th year Captain-guaranteed base wage:
Normal (7 and 7) Schedule: $120,800
Reserve (18 day) Schedule: $143,000

A pay by aircraft category structure based on aircraft marketing size and revenues:
Category One: 400XP, Ultra/Encore, XL/XLS
Category Two: Sovereign, Citation VII-X, 800XP(C)-1000-Horizon, G-150
Category Three: G-200, Falcon 2000
IPPW: Gulfstream IV & V, Falcon 2000EX
BBJ: Boeing Business Jet

Additional Pay Premiums:
Overtime:
Day 1 before 08:00 and after 9 hours of duty
After 12 hours of duty
New hourly overtime rates = 2,184/guarnantee base, multiplied by 1.5
Extended day rates = base guarantee, divided by 182, multiplied by 1.5

After midnight returns:
Realistically Scheduled: 1 Extended Days pay plus lost time
Unrealistically Scheduled: 2 Extended Days pay plus *lost time
*Lost time is the time off you lose on your first day off subtracted from your next first day on. For example, if you don’t return home until noon on your first day off than you are not available until noon on your first day back.

Holiday pay:
Extened Days pay

Instructor Pilot/Check Airman Rates:
IOE: $500 per month
IP: $600 per month
Line C/A: $750 per month
Check Airman: $1,000 per month

OCARO Pay:
Operational Check/Aircraft Restricted Ops Pilots: $1,000 per month

*Conservative Union estimates project the average pilot will earn between $6,000 to $8,500 annually in Premium Pay working a 7 and 7 (150 days) schedule and between $8,000 to $12,500 annually in Premium Pay working the Reserve (186 days) schedule.

**This economic proposal is the Company’s “last and best final economic offer.”

Signing Bonus:
The signing bonus will be calculated at $10,000 per year of service (prorated by month, $833.33) with NetJets beyond the amendable date. For example, 4 full years (48 months) of service beyond the October, 2001, amendable date will equal $40,000. Or, if a pilot was hired in October of 2004 that pilot will receive $10,000 for one full year of service. The most any pilot could receive is $40,000 for the full four year emotional rollercoaster ride regardless of total years of service with NetJets.

60% paid this year (can be differed to January 2006) and 40% on the anniversary of the ratification date (can be differed to January 2007) with interest at prime on the 40%. Or, the amount can be paid out each January over 4 years with interest at prime over the 4 years.

The signing bonus is guaranteed in the event of termination or loss of medical. In the event a pilot elects to leave NetJets they would forgo the remainder of the bonus.


Additional Terms and Duration:
5 Year Agreement

In the Tentative Agreement the wages tables will be adjusted up across the board 3% in years 6 and 7 during the amendable period.

Negotiations can begin 48 months after ratification. The Union’s Negotiating Committee will be removed from flight duty one week per month for negotiations once a Section 6 notice to begin negotiations has been served. The Company will pay the Negotiating Committee wages and travel expenses.

This is not a perfect resolution to our bargaining goals, I call it a dirty 100K not a clean 100K. Although a perfect resolution is the ultimate goal in bargaining it is rarely, if ever, achieved. Nonetheless, the Union feels compelled to present what has been secured based on one obligation; what the pilot group has the opportunity to secure is available through each individual’s hard work and determination, we can no longer look the pilot group in the eyes and guarantee a return on investment. It would be irresponsible to hold your improved wages, benefits, and working conditions hostage knowing the time value of money. Imagine where we would be now if we would have secured this Agreement 9 months past the October, 2001, amendable date. Never mind that was painful, but let’s assure we learn from the lessons lived.

Therefore, the Union’s Negotiating Committee unanimously voted to release the Tentative Agreement for a membership vote and the Executive Board in turn unanimously endorses the Tentative Agreement. If the membership ratifies this Agreement to become a successor Collective Bargaining Agreement the Union will continue to work diligently to protect the interests of, and enhance the wages, benefits, and working conditions for this pilot group.

I would regret not saying this pilot group has earned my utmost appreciation and admiration for exceeding my Union building expectations in so little time. I have been humbled by the dedication and commitment the Local 1108 pilots’ have offered to one another and I do not submit this without a genuine understanding of where we were, are, and can be if we continue to build on what we have created. We must continue to get stronger and better while functioning with an inherent instinct to look out for one another.

Moving forward this Union leadership will continue to follow the directives of this pilot group whatever they may be. Right now every pilot and pilot family needs to fully take into consideration the offer before them. Upon the conclusion of this process we must all recognize “it is what it is” while moving forward with the agenda knowing with absolute certainty that whatever the outcome may be we must proceed with no other intention but to succeed.

Look for the TA to be published electronically by Section ASAP on Monday.

Most Sincerely,

Bill Olsen
 

bluepost

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FO PAY

Read the FO pay for the 2000EX/Gulfstream and BBJ...they are 50k/67k for FIRST YR IN PROGRAM....so a 4 or 5 yr FO will more then likely be able to hold right seat in one of those 3 aircraft....and Captains will not be taking those slots with that big of a pay cut....
 

Lord Wakefield

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Extended day?

Holiday pay = $150

But at least the get the right day
 

ghostrider64

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many
There is a bit of vengence in all of this...

One of our infamous former negotiators/MEC Chairmen just bid a BBJ FO position. Which I'm sure he is trying like hell to get out of because the former BBJ FO scale went by years of NJA service. Now it goes by years in the BBJ Program. I hope he feels the pain of 2000 pilots times 4 years of agony when he sees that first FO Check:)
 

Heavy Set

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ghostrider64 said:
There is a bit of vengence in all of this...

One of our infamous former negotiators/MEC Chairmen just bid a BBJ FO position. Which I'm sure he is trying like hell to get out of because the former BBJ FO scale went by years of NJA service. Now it goes by years in the BBJ Program. I hope he feels the pain of 2000 pilots times 4 years of agony when he sees that first FO Check:)

He'll probably get the type and go to SWA...
 

Fozzy

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Heavy Set said:
He'll probably get the type and go to SWA...

I am willing to bet that won't happen. One tried and failed. Wonder why that happened.:rolleyes:
 

hawkercpt

oh crap! Now what?
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So Griz...


Did youns guys throw the FO's under the bus on purpose, or was it just incidental that all of the guys under 2 years got hosed when it comes to the pay?
 

bluepost

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Everyone here less then two years is making 37k or 39k before hourly OT...so low 40s. 3rd year they will have a base of 47k, 4th 57k. Someone on the property 12 months will get $833 per month in retro or 10k.

50% 401k match on ALL earnings

Loss of medical, short and long term disability at zero cost

Medical insurance at zero cost

2 weeks vacations less then 5 years (two 3 weeks periods off)

12 sick days a year

7and7 schedule

Free water while flying
 

Grizz

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hawkercpt said:
So Griz...


Did youns guys throw the FO's under the bus on purpose, or was it just incidental that all of the guys under 2 years got hosed when it comes to the pay?

I don't know what went into the negotiating committee's strategy. The first I saw of the TA was about 15 minutes before everyone else because I was the guy tasked with posting it on our site.

That being said, we have a problem at NetJets due to the high incidence of bypass F/Os. 98% of the pilots employed here right now is either a Captain or on bypass pay. When you go into negotiations, the goal is to take care of the membership that is voting for the contract. Since the F/O payscale is crappy at years 4 & 5, I expect we'll revist that issue in 4 years. It might be sooner than that if NetJets starts seeing a very high churn rate amongst F/Os.

My advice to anyone looking at NetJets is to make sure you can live on F/O salary because upgrades are going to be damn scarce for the next few years while all the bypass guys try to get on full Captain's pay. You might also want to make sure you can afford to live in one of the 5 domiciles. If the answer to either question is no, hold off coming here. If NetJets has a hard enough time recruiting people, they will come to the union seeking relief.

All in all, I'm pretty sure we'll still have a pretty good chunk of guys applying. Younger guys who's alternatives are the regionals and retired guys looking to supplement their income. Nothing new there - that's been NetJets target group for pilots for as long as I've been here.
 

beytzim

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Overrall, I must say, Good Job! This T/A beat my expectations. Almost makes me wish I didn't leave NJA!
 
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Grizz said:
My advice to anyone looking at NetJets is to make sure you can live on F/O salary because upgrades are going to be dang scarce for the next few years while all the bypass guys try to get on full Captain's pay. You might also want to make sure you can afford to live in one of the 5 domiciles.

I missed the 5 domiciles, what are they?

Edit: disregard, just found them, LAX, TEB, CMH, PBI and DAL.
 
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Grizz

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Redeye,

As long as you're actually an employee on property by the time the TA is ratified, you'll be grandfathered in. I imagine that will happen around the 22nd of Nov. At most a week later if things take a little longer.
 

BrnJetFuel

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beytzim said:
Overrall, I must say, Good Job! This T/A beat my expectations. Almost makes me wish I didn't leave NJA!

The 5 to 7 year guys made out best (but they do make up 70% of the voting group). Those of us in the 10 year realm, took it in the shorts, but we still got a 30 to 50,000 raise depending on the schdule we chose. Also, getting the incredible scope language and an excellent chance at aquiring many larger airframes (NJI) its an excellent step towards securing our futures and making this place finally somthing to not be ashamed of.

We wish you could have stayed to fight the fight and reap the rewards. You should know, you deserve thanks from all of us as you helped, like many, simply by creating the sucking sound left by those who went on to greener pastures. The paltry wages didn't allow NJA to fill the void those like yourself created when you left. The sell off cost started to go through the roof and no-one was showing up for classes except the extremely desperate.

My sincerest thanks and hope where ever you are it's at least as good or better.
 
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Grizz

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beytzim said:
Overrall, I must say, Good Job! This T/A beat my expectations. Almost makes me wish I didn't leave NJA!

I'd also like to say thanks for coming out to Omaha with the boys. Hated to see ya go...
 

NoJoy

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Is Netjets still keeping their gateways? (ie SEA, ect.) Will the company pay to get from a gateway to a domicile?
 

BrnJetFuel

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NoJoy said:
Is Netjets still keeping their gateways? (ie SEA, ect.) Will the company pay to get from a gateway to a domicile?



Gateway terminology is gone. Domiciles and Home Based Airports (HBA). For those employed with NJA prior to ratification (assuming this November 21) they will be able to use SEA and tens of others in the area due to meeting the criteria set forth in the HBA qualifications. We litterally just gained well over a hundred plus airports to call home. The 24 gateway airports aren't gone, just the terminology. No losses, just tremendous gaines in this area.
 

NoJoy

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So airports like SEA are not gone, but if you get hired after the ratification, you would not be able to use these HBAs? If a new hire can use these HBAs then it is a good thing, but commuting will be tough without the use of an HBA.
 
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