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Why is NetJets TA Unfair?

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gunfyter, thanks for the response. Eloquent as always.

I've been around the patch a few times in 55 years of life and I have seen some really stupid stuff and not just in aviation. Fact is, there ain't no tellin' what the company clowns will put forth as a reasonable offer.

Guess the real question is, what is the forecast wait for another pass at a TA / Contract?

On a philosophical note, "It is easier to be the hero than the administrator." We will see just how long those of the SU running for MEC remain heros. In reality, I think they will go from hero to A-hole in zero point nothing seconds.
 
Former lurker posting his 2 bits worth

Im all for the fight y'all are wagin' for your wages.

Can't help but say this. If you are unhappy with your job, what yer being paid for what you do, and the job conditions... why not look elsewhere in the industry for a better job?

Airjobs digest has a bunch of jobs posted for corporate pilots, and I gar-own-darn-tee you they pay WAY better than what the FO's are makin' right now at Net jets.

Why not lift yourself up and look out there to see what alternatives are available?

I know y'all have already thought of this and are prolly holdin' on to get a better package. But think of all the lost earnings that go by for every day you don't have that better payin job.

Anyway, good luck in your "war on terrible pay."
 
El Chupacabra said:
How do you know how much money the company lost? Mr Bill says we didn't lose money.

The 310 million dollar NetJet loss is in the current Berkshire Hathaway Securities and Exchange Commision filing. Anyway, every day that goes by, we're losing money. It would have made a He!! of a lot more sense to take the TA and the money and start working on a new TA. We're in the same position right now - working on a new TA - except we didn't get the raise and the signing bonus.
 
gunfyter, you are certainly correct, "they [sic:Company] are happy with what we have now." The company has not been and will not be in a hurry to change anything that is currently in force. Fact is, everyday spent under the current contract is good from the point of view of the company clowns. There are some things the company will change just because they can will out pilot group approval: Standby For Heavy Rolls. (Man, do I love that nautical talk stuff.)

As I said, time will tell.
 
$310 million? We know that money was not lost paying Pilots.

If we all worked for FREE (as in a salary of ZERO) that means losses still would have been nearly $200 million.

If there is a problem it has nothing to do with pilot pay.
 
NJAFracPilot said:
The 310 million dollar NetJet loss is in the current Berkshire Hathaway Securities and Exchange Commision filing. Anyway, every day that goes by, we're losing money. It would have made a He!! of a lot more sense to take the TA and the money and start working on a new TA. We're in the same position right now - working on a new TA - except we didn't get the raise and the signing bonus.
Please show me where in the SEC filling you see a $310 Million loss in the latest SEC filling.

I will make it easy for you....this is from the BH 10Q SEC filling:

Revenues from aircraft sales and flight operations in 2004 increased $97 million (21.0%) for the second quarter and $279 million (32.0%) for the first six months.
Pre-tax earnings of the flight services segment for the first half of 2004 totaled $66 million compared to pre-tax earnings of $25 million for the first half of 2003. For the first half of 2004, pre-tax earnings from training activities as well as aircraft sales and flight operations increased over the first half of 2003. Pre-tax earnings from training increased $23 million for the first half of 2004 over 2003 due to the aforementioned revenue increases and from relatively small increases in certain fixed operating costs, including salaries and depreciation. The pre-tax results of the aircraft sales and flight operations business improved by about $18 million during the first half of 2004. The improvement was primarily due to an increase in aircraft sales and an increase in the volume and efficiency of flight operations.



Please show me where it says what you are claiming. I enjoy being proven wrong as I learn something from it - PLEASE prove me wrong; I will even give you the link to the SEC http://www.sec.gov
 
LR45JI said:
Please show me where in the SEC filling you see a $310 Million loss in the latest SEC filling.

I will make it easy for you....this is from the BH 10Q SEC filling...

Please show me where it says what you are claiming. I enjoy being proven wrong as I learn something from it - PLEASE prove me wrong; I will even give you the link to the SEC http://www.sec.gov


Sure, go to the same site or to Hoover or Edgar-Online and look at Berskshire Hathaway's last 10K filling.
 
Here ya go, straight from the BH 10K, page 28, ending 12-31-03 which is the latest 10K.

Flight services
This segment includes FlightSafety, a leading provider of high technology training to operators of aircraft and ships and NetJets, the world’s leading provider of fractional ownership programs for general aviation aircraft. FlightSafety’s worldwide clients include corporations, regional airlines, the military and government agencies. The decline in revenues was split between FlightSafety (about $96 million) and NetJets (about $310 million). A decline in FlightSafety training revenues accounted for most of that businesses revenue decline. The decline in training revenues was due to a decline in regional airline training somewhat offset by increased U.S. Government training revenues. The decline in revenues at NetJets was due to a reduction of revenues from sales of aircraft of $514 million partially offset by increased flight services and other revenues of about $204 million. Pre-tax earnings from these businesses was $72 million in 2003 as compared to $225 million in 2002. The results for 2002 include a gain of $60 million from the sale of a partnership interest to Boeing and the results for 2003 include the recognition of pre-tax charges of $69 million related to write downs of certain simulators and aircraft inventory. Excluding the aforementioned gain and write downs, “normal earnings” from these businesses were $141 million in 2003 versus $165 million in 2002. The reduction in combined “normal” pre-tax earnings from these businesses is due to reduced “normal” pre-tax earnings at FlightSafety of $34 million somewhat offset by improved results at NetJets where its pre-tax loss before write downs was $9 million in 2003 versus about $19 million in 2002. The corporate aviation business has slowed significantly in the past few years which has hurt FlightSafety’s results. NetJets continues to be the leader in the fractional ownership field.​


I will let someone else educate you on the difference between Revenue vs. P/L.
 
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Good, glad to see you found it. Your post was being edited faster than I could read it.

The important thing is that we could have the $25,000 signing bonus and the pay raise in our pockets while we negotiate the new TA. The fact is that we don't.
 
ok, NJW I am trying to follow your logic thanks for following mine.

Computer Cos Laid off programmers, causing glut in market, driving everyone's salary down. I thought that was happening with pilots, supply and demand. Too many pilots, too few jobs.

A computer programmer that made 150K at World Com gets paid 50K at Net Jet. Should he be paid 150 because that is what he used to make? Because others may make that at another company? Or should he be paid 50k because there are three other people who can do the job and want the job for 50k?

If 1000 pilots took the job for 29k over the past four years, there must be something they liked, pay, benefits, location, the secretary:)
How does supply and demand of pilots fit in here?

I have other comments and quesitons but dont want to take up too much space. Thanks
Bet your kids were cute for Halloween.
 
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NJAFracPilot said:
The important thing is that we could have the $25,000 signing bonus and the pay raise in our pockets while we negotiate the new TA. The fact is that we don't.
Your obviouselly senior if you were getting the 25K, maiking up less than 10% of the seniority list.

The important thing is that the horriable language (CVR, A & B Scale pay per RCA) were not accepted and are now "Off the table".
 
A $310 Million loss in the SEC filing. Any more false claims out there.

"The decline in revenues at NetJets was due to a reduction of revenues from sales of aircraft of $514 million partially offset by increased flight services and other revenues of about $204 million"

Revenues from FLIGHT SERVICES (thats us) INCREASED!
 
If you don't want to believe the SEC filings, go back and watch Boisture's DVD. In it he indicates that NetJets' net profits have been running the 5% range, which is not up to Berkshire's desires, but profits nonetheless, not losses. Straight from the honcho's mouth.
 
Hey Ding Dong

[QUOTE
Good, glad to see you found it. Your post was being edited faster than I could read it. The important thing is that we could have the $25,000 signing bonus and the pay raise in our pockets while we negotiate the new TA. The fact is that we don't.[/QUOTE]

If you are so concerned about the health and profitability of Netjets, volunteer to work for free. None of us (82%) would mind while we fight for a descent contract. As El Chupacabra pointed out using your numbers, the company would still show a loss if everyone worked for free. NJA pilots are the lowest paid of all of NETJETS, INCs. subsidiaries. I don't hear you jumping up and down about that. For Chrite Pete, have a little self worth for once. Ask our CEO and President if they are willing to take a pay cut to subsidize our failing company. You have alot to learn about business, thank GOD guys like you aren't in leadership positions!
 
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My 2 bits worth--ladies first...:)

FAcFriend, the 1000 pilots that took the job in the last 4 years had been upgrading quickly to PIC, so while not paid what they should be, still weren't making 28K very long. Getting stuck on FO pay is something that happened in the last 2 yrs or so. Yes there is something they like--the type of flying they do--constant change, more responsibility for decisions, etc. And don't forget that the contract had been under negotiation already for the majority of those hired during that time. Who'd ever have thought that it'd take 3 yrs to get a TA!! The new hires were told by other pilots that they'd get an "industry leading contract" and heard repeated promises of "kick-ass" pay. Just because the last MEC failed miserably doesn't mean that fair pay isn't possible. It just means that the pilots need to have leadership that truly cares about them and their families and is willing to work hard for them (more about that later). As far as your computer programer analogy goes, I respectfully suggest that it's far too broad to be useful. In all skilled labor there are levels of talent and experience that come into play. With the face-to-face interaction between the pilots and wealthy/famous owners seen at NJA, it's also reasonable to assume that people skills are a consideration as well. Being a good pilot is not a guarantee of having diplomacy and a welcoming attitude. Others before you, have mentioned an over supply of pilots, but NJ is known for hiring only the best; if they lower their standards that reputation could surely suffer. Furthermore, pilots have been refusing the job because the pay is too low and the (now defeated )TA was bad. My husband's F16 friend is now in training at AirTran for better pay. We are seeing another rule of economics at play here: Companies that are unwilling to pay for the level of skill/experience they desire must either lower their standards or raise wages. Don't you think the owners will complain if they are given beer after paying for champaign? With accidents recently in the news, I believe safety/experience will continue to be a high priority for them.

Texasasskicker, I'd bet that many NJ pilots do have a backup plan, but they like the job and think their cause is worth fighting for. As I've tried to point out before, balance is an important goal. My husband, and other NJ pilots, enjoy the flying and px interaction. They want to have a contract that allows them to stay at a job they like. That said, thanks for your show of support! It helps.

Kingtut, what "reality" is your low opinion ("they will go from hero to A-hole...") of the SU leaders based on? My high opinion of them is based on my own personal exchanges with some of them, my husbands' teleconferences w/all of them, and evidence of their strong determination, to help the pilots, which we have seen already. When you add to those facts, the REALITY that we have had FAR MORE communication from SU in the past 3 months than we had from the last MEC in 3 years, it makes your opinion appear harsh and hasty, not to mention, unfounded.

NJAFrac pilot--where do I begin?? Obviously your use of "WE" could have had a $25K signing bonus applies to a small minority. My husband was only offered $5K (after 21 months w/NJ) and that is the same that a brand new hire would have received. How is that fair?? You only mentioned pay (clearly yours is far higher than others) but the TA was terribly flawed in all areas. The yes voters were agreeing to a list of regressions that 82 % deemed unacceptable. Additionally, the weak scope clause would have placed many jobs at risk. Apparently--not yours. It seems to me, you fail to recognize that the basic premise of a union is to get the most possible for the most members. One would think that if the FO/FOs can hang on for a better contract, while making less than $30K a year, then surely your family can as well. Do we think the MEC turned stupid over night? LOL...don't ask! Seriously, I think they were in over their heads but were too arrogant to admit it. SU, on the other hand, is more than willing to obtain the service of experts and make use of the talent/experience offered by other pilots. NJW
 
El Chupacabra said:
Live, I think you have NJWingman confused with someone else
Thanks, I edited it. Quoted the wrong person.
 
Sctt@NJA said:
If you can't tell the difference between a decline in revenue and a loss ...

Okay, I screwed the pooch reading the MD&A on the 10k, there was a decline of revenue of 310 million and a loss of only 9 million. But the point is, I have an investment of time in this company and look at it as a career, not a stop on the way to somewhere else. I want equitable pay for us, but I also want the company to be around to pay us. We could get paid and still work toward improving our next contract had we accepted the TA.

We'll just have to see what SU has to say after they've been shown the secret handshake and hope that it doesn't take too long to get another TA on the table.
 
NJAFracPilot,

You lost. Get over it.

Stay the hell out of the way while those of us with some self-worth fight for a good contract.
 
NJAFrac pilot, let's not lose sight of the fact that YOU are not supporting your family on FO/junior captain wages while calling for those that ARE to continue doing so for another 3 years! And obviously it doesn't bother you to advise other pilots in the company to take a PAYCUT for 3 years and then have to fight their way back to where they started from! Many currently on the flex would have faced EXACTLY that scenario. Your statement --"I want equitable pay for us"...is nothing more than lip service. Had your TRULY meant that, you'd have voted NO.

Starman, his problem isn't a lack of self-worth....though "self" is a key word. NJAFrac pilot is SELF-CENTERED. That's not a problem when you're going it alone, but this is a union---hhheelllooo! Those making much less than you--the vast majority--don't want to keep hearing that worn out "next time" tune any longer. Didn't you get that clue when you looked at the 82 percent (of 98% returned ballots) that voted NO? So you're happy with your pay--fine---but please stop telling others who make far less to be satisfied with theirs. NJW
 
NJW
So do you think the programmer should be paid 50k or 150K? He has cert in all areas even though NJ only uses some of them. Its just a philosophical question.

I read this post and think- Kids stay in the AF longer!

Then i try to put myself in your shoes. The MEC said "kick ass pay" SU.org says "kick ass pay." What exaclty is Kick ass pay? 10%, 20%?

You both say "industry leading contract." But I read different definations of industry? Fractional, Aviation? Transportaion? What industry is MEC/SU.org talking about?

What about other benefits?
Medical, dental vision? Are they any good?
(I assume you have military benefits? I may be wrong)

Retirement? Is there a pension plan? Is this important?

I saw somewhere on this board that retro pay and bonus is a tax issue? Do you know the issue? Can anyone explain it to me?

Is your salary just salary or do you get overtime pay too? Is there any opportunity for overtime pay?
 
A change in tune...

Gotta agree with the wife on this one. We were promised "kick-ass, industry leading pay". We didn't see it.

There were plenty of people that saw the possibility of a real return on investment in pay-for-training (PFT). I never believed in it and quite honestly feared that PFT would be seen in the same way as "scab" by ALPA and other unions before long.

The destruction of the very livelihoods in this industry all began with PFT. While airlines contiued to bargain in good faith. Pilots with less experience simply took the "easy" route.

Isn't it time this problem was finally fixed?

Just like CVR language...should we really ever before looking at regressive pay scales or language in any area of the contract?

I did vote yes on the contract. I wish I hadn't, and I'm glad it didn't pass!

Lets get this whole industry back on the rails...one contract at a time.
 
While an admirable thought, the fact is that you are the only union company in your immediate industry.

The airline union has found that they have extreme difficulty in protecting their turf in a deregulated environment.

Either way, there are a bunch of people who got a kick ass contract walking the street.
 
Tide is turning. LANDSLIDE Re-election of Bush and Republican congress means Taxcuts for the Rich will be permanant. They can now feel better about affording to pay pilots... Buy more and BIGGER and FASTER airplanes.

I just transferred all my investments to Stock and Real Estate. Look for DOW 11000 by Christmas and 13000+ by summer. NASD will grow faster.

Confidence will be fueled by more terrorist nations going the way of Libya and capitulating now that they see the American people support a strong President who will kick their ass.

Stability will cause oil prices to sink and then watchout... The continuation of the Reagan economic expansion will kick this economy into HIGH SPEED LOW DRAG overdrive.
 
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FAcFriend, this recent article gives a good background to the situation as long as you remind yourself when you reach the end that the TA has now been voted down by 82% and the pilots are well on their way to achieving their other goals. http://www.ainonline.com/issues/11_...dcotractp4.html.

It seemed to me that "kick-ass" pay was another synonym for "industry-leading contract"--that industry being business aviation. Many referred to the NBAA salary reports as a benchmark for setting the NJA payscale. It makes sense to me and sounds quite reasonable. Btw, SU does NOT use the phrase "kick-ass" pay. They are doing what the failed MEC should have done--using the pilots' surveys to tell them what to fight for. Fairness will finally prevail!

Overtime is paid but the pilots are absolutely correct that families shouldn't have to rely on it to help pay the bills. The salary should be sufficient, in and of itself! It is wrong for the company and the last MEC to count overtime toward a pilot's compensation because they cannot count on it being there--the chances vary w/the plane and timing--not to mention that they are gone more than enough as it is! My husband extends 2 days a month for the extra money and other wives tell me that their husbands would also but the opportunity isn't there in those planes. The pilots are demanding that overtime become "gravy" as it is for other workers. Working those 2 extra days puts my husband gone 19 days a month; needless to say, I couldn't agree more.

Benefits are better than our AF retirement ones and the NJ pilots seem to be mostly satisfied, as far as I can tell. They do say they will give nothing up--completely understandable--and I hear calls for NJA to receive the same benefits as the other Netjets companies, usually NJI. This also seems reasonable as they are in the same family DOING THE SAME JOB and a parent isn't supposed to show favoritism--right?

I've seen retirement mentioned on the pilots board and the posts that listed it as an important objective were well received. And why not? It is a staple of professional compensation, isn't it? Loyalty should be rewarded and the growth of the company in recent years does owe much to the efforts of the pilot force. I'd be shocked if the managers don't have a retirement program--wouldn't you? How do they justify leaving out the pilots? This is another issue that will be addressed in the survey, but I do know that the pilots want it to be a career, not a stepping stone.

Tax question: The pilots are aware that they will need to seek expert tax advice, but it's generally accepted that it would be better to have the pay as Retro which applies to the past years and can be spread out (by each pilot) to adjust what was previously made rather than being a lump sum that can lose more, tax-wise, in the year that it falls in. This is my understanding and I invite any of the NJ pilots to help explain it better if I am not stating the case correctly.

Staying in the AF was only possible for about 12-18 months longer as the funds for my husband's position were not being extended by congress. He had already retired in 2001--went back in after 9-11 and his subsequent furlough from AA--and as a condition to returning to active duty agreed that he wouldn't be eligible for promotion and the program was of short duration. Working as hard as his peers for less money was not attractive. That experience does help us to understand the NJA vs NJI frustration, quite well, however. This board has been rife w/second-guessing, and I can understand it to a certain degree. Pilots and their wives do it to themselves as well, but with more compassion. I'm not saying you are being cruel, FAcFriend, but others have been. It saddens me that pilots will do that to one another. No one has a crystal ball nor would ever have predicted something like 9-11 which changed the industry and cost so many their lives. That said, life does go on and pilots must provide for their families. It must also be said that NJA is one of the few companies that actually grew during the aftermath of 9-11. They are NOT like the airlines!

If the NJ programmer took the job knowing that he was going to be overqualified and the pay DOES match the job duties, (for the pilots it doesn't)then he may well have to look elsewhere. If the company is interested in retaining him because of his skills, he can try for a better salary. Either way, the company should never pay programmers more than pilots who are responsible for the lives of others, plus, very costly airplanes, and are gone more than they are home. If this happens then CLEARLY THE PILOTS ARE UNDERPAID! I sympathize if you or your spouse are also facing job pressures.

Hawkered, we're just getting started and there is a lot of work to be done. SU needs everyone to participate; therein lies our strength. Welcome to the team!
Netjetwife
 
gunfyter

First, congratulations upon the victory of your candidate and I applauded your enthusiasm and optimistic outlook for the future of our national economy. However, your mutual affinity for republican, conservative politics and organized labor presents an interesting dichotomy. Clearly, you are aware that the fortunes of organized labor are not improved by the dominance of the Republican Party in the White House and the Congress.

I certainly hope that your forecast of rich people passing their good fortune on to the less fortunate holds up. Experience tells me something else.
 
Kingtut, I could be cowardly and let you do all the talking on THAT issue, but it doesn't seem too fair. So here's my two cents worth---I concur...lol Now I'm going to pull a failed MEC and post and run...lol. Actually, I'm off to clean house, something that sounds preferable to discussing politics....:) NJW PS Gunfyter, I do hope that you're right about the rich being willing to pay the pilots more! It does seem to me that they would care.
 
The rich are rich for the most part because they pay attention to the details.
Most experienced programmers I know make more than corporate pilots.
Corporate and charter pilots, for the most part, do not get any of the benefits you get in the Netjets environment.
They grew because of 9/11 to some extent.
NJI was and is a different animal.
 

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