(BRK.A), (BRK.B)
Sometimes a familiar face is not enough to bridge a labor contract dispute.
The NetJets Association of Shared Aircraft Pilots (NJASAP) has set September 10 as the date to resume picketing NetJets at seven airports. The resumption of picketing reflects the union’s frustration with its lack of progress in getting a new contract.
NetJets pilots have been working without a contract since the prior agreement expired in 2013.
A Familiar Face Returns
On June 1, Berkshire Hathaway, the owner of NetJets, fired NetJets’s chief executive and chairman Jordan Hansell. Hansell was replaced with Adam Johnson, who had spent 22 years at NetJets.
At the time, NJASAP was positive in the change in NetJets’s leadership.
“Newly appointed CEO Adam Johnson and COO Bill Noe bring much needed experience in both operational and labor relations to their respective positions. Union Leadership looks forward to engaging the new team: We hope they share our goal of rebuilding a once progressive labor management relationship. Similarly, Union Negotiators remain ready and willing to work with senior management to bring contract negotiations to a successful conclusion on behalf of our pilots.”
Unfortunately, after a 90-day summer ceasefire, the union is ready to resume its picketing, noting that the union and management are still far apart.
Johnson has pointed to the “remarkable” progress the two parties have made, but notes, “due to the parties’ views about the economics of this business — and thus how much additional cost we can take on over the next decade — as well as different expectations concerning the demand for the services we provide.”
NJASAP is seeking a 35% pay increase over three to five years. Currently, its captains with 10 years of experience earn $131,179 a year.
Words of Wisdom from Warren
“It’s human nature to sometimes have differences about how people get paid,” Berkshire chairman Warren Buffett said, when questioned about the dispute at the 2015 Berkshire Hathaway annual meeting.
Unfortunately, those differences don’t look any closer to being resolved.
© 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.