(BRK.A), (BRK.B)
Berkshire Hathaway’s NetJets is on the verge of settling its labor dispute with its pilots union, just a week after reaching agreement with its flight attendants.
The pilots have been working without a contract since the previous agreement expired in 2013.
NetJets Aviation and the NetJets Association of Shared Aircraft Pilots (NJASAP) have reached an agreement in principle on a new collective bargaining agreement that would end the union’s picketing at seven airports.
The NJASAP Executive Board and Negotiators confirmed that the proposed agreement has enhancements consistent with their goals of “protecting, repairing and improving the previous agreement.”
NetJets and NJASAP have been engaged in contract negotiations since June 2013, and, in early May 2015, began bargaining with the assistance of a National Mediation Board-appointed mediator.
The union released this statement:
“Getting to this point has required a massive effort from top to bottom,” NJASAP President Pedro Leroux said. “We could not have succeeded without the tremendous support of our members and their families: I am extremely proud of this outstanding group of professional pilots.” The Union president added, “I would also like to thank the National Mediation Board, the new NetJets senior management and their negotiators for their commitment to the bargaining process.”
They also added:
“In our highly competitive segment of aviation, major improvements to collective bargaining agreements require that everyone do their part to ensure the highest levels of safety, customer service and reliability,” Leroux said. “The NJASAP pilots have led the industry in these categories, and, going forward, we will redouble our efforts to ensure NetJets retains its industry-leading position.”
It will be late November before the pilots actually vote on the new agreement.
Change in Leadership Brings Breakthrough
On June 1, 2015, Berkshire Hathaway, the owner of NetJets, dismissed NetJets CEO and chairman Jordan Hansell, replacing him with Adam Johnson, who had spent 22 years at NetJets. At the time, there was hope of a breakthrough with NJASAP, the labor union representing the approximately 2,700 pilots employed by NetJets.
Berkshire Hathaway purchased NetJets, the leader in fractional jet ownership, in 1998 for $725 million.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.