Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Warren Buffett wants to cut benefits of his planes? pilots

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

FamilyGuy

Well-known member
Joined
May 12, 2005
Posts
581
In today's New York Post:

http://nypost.com/2015/05/26/warren-buffetts-airplanes-thriving-despite-pilot-shortage/

The 1 percent is giving Warren Buffett agita again.


Berkshire Hathaway-owned business-jet operation NetJets is trying to wrangle benefit cuts from its pilots union just as boom times fuel a pilot shortage that could crimp its business.


A lot of business jet owners are looking for pilots and can't find them, a former NetJets executive said.


With the economy on the rebound, wealthy customers have returned to buying shares in NetJets planes in exchange for flying hours. Last year it sold 3,500 NetJets Marquis cards - 1,000 more than expected, the exec said.


Nevertheless, NetJets, which almost collapsed during the downturn when CEOs cut back on private-jet travel, said it has to trim costs to meet Berkshire?s demands for greater returns.


The situation is fueling testy talks with its 2,700-member pilots union, which said the company wants cuts when business is soaring.
"This year and the next year are going to be the best years [the business-jet industry] has had in the last decade, and we're not really in a position to capitalize on it," said Pedro Leroux, president of the union, NetJets Association of Shared Aircraft Pilots.


NetJets is building up its fleet after selling planes to pay down debt during the downturn. Its fleet was 26 percent smaller at the end of 2014 compared to 2008, when it had 634 jets, according to research firm JetNet.


It has been subcontracting more flights to meet demand and cover for grounded planes after cutting back on its spare parts inventory.
Buffett, who admitted NetJets would have crashed and burned had Berkshire not backed its nearly $2 billion of debt, suggested the company would have no problem filling cockpit seats.


If we have an opening, we have lots and lots of people who want to come join us, and we have very few that want to leave, he told Fox Business this month.


Last year, 98 pilots either resigned or were fired, more than double the previous year, the union said. Its own internal polling data show 30 percent of NetJets pilots are considering a move to a commercial airline.
They are the highest numbers we've ever seen, the union's Leroux said.
NetJets pegged its pilot losses at 93, lower than the union's tally, and said only 22 of them quit for competitors. The company said it is halfway toward its goal of hiring 127 pilots this year.


During the recession, NetJets furloughed 495 pilots, of whom 240 have returned.


NetJets wants to maintain the present salary and is asking pilots to start paying for some health-care benefits.


The pilots contract with NetJets expired in 2013, but they can't strike until they go through federal mediation.


NetJets goal remains as it always has been to reach a fair agreement with the pilots, a NetJets rep said.
 
Last edited:
I caught this article earlier today in the NY POST as well, and the following sentence really stood out to me...

The pilots contract with NetJets expired in 2013, but they can't strike until they go through federal mediation.

Can someone please educate me as to why NJ pilots need the govt's permission to go on strike? It would seem to me that Warren Buffet would not feel too threatened if lawyers, feds, and union reps are calling the shots. Pressure from the bottom up requires individuals with courage but would seem to me to be a much more effective strategy.

Like I said, I know very little about this topic, but I think it is a very interesting development in such a small market especially with a company that holds such a commanding market share.

One thing is for sure, NJ owners are not the type of people that appreciate added uncertainty, so I'm guessing the wheels are going to come off sooner than later regardless of how this issue plays out.
 
NJA pilot contract falls under the Railroad Labor Act. Because of the RLA, our contract has not "expired" but it is "amendable" at this time. The negotiating process leading up to a strike is all controlled under the RLA so you won't see legal wildcat strikes that you might with other unionized companies outside of aviation.
 
Interesting. Thank you very much for your insight.

Can you tell us when the "contract" actually does expire?

Nope. Key word "amendable". :smash:
 
Nope. Key word "amendable". :smash:

So you are saying that the contract never expires because the expiration date can always be amended? If so, it seems to me that the agreement would still have a particular date that can be referenced even if it was just for show.
 
There is no expiration date. The only way the terms of the CBA can be ignored is if we are released for self help, or in other words, a strike. Then the company can cease all benefits, lock us out, and scab away. Until we amend the existing agreement or get released by the NMB, we remain status quo.

Meanwhile, we continue to see a reduction in benefits due to simple inflation, as most pilots are at the cap. We continue to see a reduction in QOL on the road due to short sighted decisions by the EMT, including reduced hotel quality, reduced food quality, reduced rest and overworking us to the detriment of safety, and mix issues due to a purely reactive policy.
 
So u guys can't strike anytime soon? Ur screwed if that's the case. It will be 2007 forever for ur paychecks
 
So u guys can't strike anytime soon? Ur screwed if that's the case. It will be 2007 forever for ur paychecks

Jesus I hope my son doesn't learn to write like this.
 

Latest resources

Back
Top