netjetwife said:
It isn't necessary for SWA pilots to fight that hard as they are treated respectfully and paid professionally to begin with. Had those same pilots been at NJ for the last 4 years, I have no doubt that some of them would have grown just as frustrated and fed-up with the foot-dragging and broken promises the NJ pilots had to deal with. Likewise, had the NJA management acted like the leadership of SWA, the pilots could have used a more moderate vocabulary.
I don't think you know very much about the Southwest pilot's contract or their corporate culture.
There is no common ground to compare the thuggish Local 1108 to SWAPA.
In 1994, management seeing the dangers of the hard salaries offered by the mainline carriers, offered something different to their pilots. Herb offered them a 10 year contract with a pay freeze for 5 years to be offset by stock options, bonuses and profit sharing based on company profitability.
The pilots went for it. It's a self adjusting contract - when times are lean and there are no profits there is no profit sharing and stock options aren't a hard cost, this allows the company to adjust to market conditions.
It has worked out well for the pilots. Senior pilots got 10,000 shares with a strike price of $3.95 after four splits. Today, the value of those shares is about $850,000. In 2004, the pilots voted to extend the contract for another two years, in so doing receiving an average of about 9500 shares per pilot at a strike price of $12.84.
There was a collateral benefit to management which Herb probably anticipated when he offered this move away from traditional hard pay way back in 1994 - the pilots are heavily invested in the company and Southwest's success is their success. Thus the pilot's goals and management's goals are the same.
Subsequently, Southwest pilots would never push for a contract that had the potential to threaten
their company's viability.
I'm not suggesting that this would work for Netjets as the company has never made a profit and Berkshire Hathaway stock has been losing value for 24 consecutive months, but a more cooperative and less self-serving attitude on the part of Local 1108 would go a long way in insuring the survival of NetJets.
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