November 15, 2014 Newsletter

NetJets Demands Employee Concessions, Threatens to Fire Employees  

Berkshire Hathaway’s NetJets, Inc. is threatening to fire workers over the International Brotherhood of Teamsters decision to publicize the names of wealthy customers who stand to benefit from the company’s attack on the wages, benefits and working conditions of middle class employees. The Columbus, Ohio-based fractional ownership jet operator is owned by Warren Buffett's holding company and provides business and leisure travel to the global super-rich. 

“NetJets’ threat to terminate middle class workers is just the latest example of this out-of-control, multi-national corporation trying to coerce and intimidate its workforce into subsidizing the global super-rich,” said Paul Suffoletto, President of Teamsters Local 284. “The employees we represent will not give up one penny so a Wall Street banker or CEO can take a cheaper vacation on a private Gulfstream jet.” 

The Teamsters Union represents approximately 600 NetJets employees who work as flight attendants, aircraft mechanics, maintenance controllers, aircraft cleaners, aircraft fuelers, stock clerks and flight dispatchers, all of whom are currently in labor contract negotiations. Despite profitability and rising revenues, NetJets is demanding compensation, benefits and job security concessions from unionized workers. 

A NetJets website states a “core negotiation requirement” is “to pass as much of the savings [from employee concessions] as practicable to owners and potential owners…” NetJets refers to its wealthy customers as “owners.” 

“We think the public will be very interested in what is happening at NetJets when we start to attach names and faces to some of the customers that stand to receive a subsidy for luxury travel at the expense of middle class Americans,” said Capt. David Bourne, Director of the Teamsters Airline Division in an Oct. 27, 2014 press release. 

Since that time, the company has threatened to fire workers for assisting their union in its effort to publicize the identity of the wealthy individuals and multinational corporations who would benefit from NetJets’ subsidy scheme. 

“NetJets’ decision to threaten our hard-working members is a disgrace,” Bourne said. “We are going to defend these middle class workers, no matter what it takes and we aren’t backing down from our decision to publicly identify the wealthy customers who stand to benefit from this attack.” 

Piedmont Stock Clerks Negotiations Continue 

Piedmont Airlines Stock Clerk negotiations resumed on November 11th, with the Company making a proposal on Article 19 (Benefits) and a partial response to the Union’s previous proposal on Compensation. The Union analyzed the proposal and found it to be deficient to the needs of the membership. 

The two sides met again on Wednesday, November 12th and reported productive discussions on the direction of the talks and possible areas of agreement.  

Piedmont Mechanics Update   

Negotiations resumed on Monday November 10th in a brief two day session that was not viewed as overly productive, however the parties did come to a clearer understanding of each others’ position on their differences. The union and company negotiators are seeking innovative ways to resolve the outstanding issues.  

 No new dates for discussions have been scheduled. 

Airline Industry News 

Governmental and Regulatory     

The Federal Aviation Administration (FAA) is loosening the age restrictions for older pilots, the agency said Wednesday. 

Airlines, Industry and Labor 

As part of its continuing effort to strengthen ExpressJet's financial outlook, parent firm SkyWest Airlines has worked with United Airlines to shift 36 Embraer E-145 aircraft from ExpressJet to Trans States Airlines.  

American Airlines Group Inc. (AAL:US) won’t try to add seats to the largest jets flown by its regional carriers, saying it’s more important for new management to build trust with pilots than to increase revenue.

Jeff Smisek, CEO of United Airlines, signed a pledge on Monday to assist veterans who work for the carrier in transitioning to civilian life. "We need people who understand pressure and how to function under pressure, who have been trained, who are disciplined, who are thoughtful, who are natural leaders," Smisek said.

Airlines for America has filed a lawsuit against the Port of Seattle for "unlawfully imposing wage, hiring and training requirements on airlines and their employees that conflict with federal and state laws and labor agreements," according to this article. Attorneys for the group say that wage laws should extend to all workers in the state, and not just a small group of airport employees.