Labor Disputes Heat Up at Fractional Operations
NetJets kicks off mediation, while both NetJets and Flexjet have faced union lawsuits.

Labor issues heated up at the two largest fractional operations–NetJets and Flexjet–as unions turned to legal actions to make progress in their negotiations. At NetJets, mediation talks have kicked off and a lawsuit has led to the firing of a senior executive. At Flexjet, owner Kenn Ricci is charging that the legal moves are an “act of desperation” by a union seeking to expand its representation.


The NetJets Association of Shared Aircraft Pilots (NJASAP), which represents 2,700 NetJets pilots, in February filed a lawsuit charging the fractional ownership provider was engaging in an unlawful intimidation campaign designed to destroy the union. Among the claims were apparent attempts to threaten pilots by referring to job losses at Hostess Brands, which went bankrupt in 2012. “The company went so far as to hang Hostess Twinkie snack cakes on the walls of its corporate offices,” the union charged.


 This led to a NetJets investigation of the claims and the firing of a vice president involved in the actions. “We discovered that–without the knowledge or approval of NetJets–a team member undertook efforts on his own to blog and tweet about the pilots’ union activities and positions,” a NetJets spokeswoman told AIN. “This situation, which involved a single manager acting alone, is the only episode of inappropriate conduct we have discovered in this ongoing investigation.”


About the same time, two other senior executives–COO Bill Noe and NJI president Adam Johnson–left the company, but the spokeswoman said those departures were “purely coincidental” and unrelated to the union activities.


Aside from the firing of the employee involved in the anti-union activities, known as “Twinkie the Kid” on Twitter, NJASAP continues to press ahead on the labor dispute that has been under way for two years. In April NJASAP filed for mediation with the National Mediation Board, and mediation talks began last month.  â€œWhile some progress has been made, company negotiators continue to reject reasonable proposals covering a range of non-controversial subjects and to move at a snail’s pace when it comes to making simple fixes to known problems,” NJASAP president Pedro Leroux said.


To heighten attention on the labor dispute, hundreds of pilots picketed in front of Omaha’s CenturyLink Center during the annual shareholders meeting of parent company Berkshire Hathaway in early May. Leroux said he believes that Berkshire Hathaway chief Warren Buffett “has not been fully apprised of the seriousness of the labor situation unfolding at NetJets.”


NetJets acknowledged that it is concluding the second year of bargaining with the pilot union. “While it is not unusual for negotiations in our industry to be lengthy and complicated, the pace of progress to date has been frustrating to us and our team members,” the spokeswoman said. “NetJets holds its pilots in the highest regard and [is] committed to good-faith bargaining with unions…contrary to the union’s rhetoric, there is nothing on the bargaining table that would undermine that position. We believe a reasonable contract can be attained.”


Actions at Flexjet


Separately, the International Brotherhood of Teamsters Airline Division is backing a lawsuit against Flexjet and its parent, OneSky, alleging that three of its pilots were illegally harassed and terminated for seeking unionization. Calling the lawsuit “an act of desperation,” Flexjet chairman Kenn Ricci, however, told AIN that the legal move is a sign that the Teamsters is unable to get the support for unionization. The Teamsters Airline Division, which represents pilots at Flexjet sister company Flight Options, has been in the process of organizing Flexjet pilots.


According to the union, Flexjet fired three pilots who publicly identified themselves as union supporters. “It is a blatant case of anti-union discrimination,” said Teamsters Airline Division international representative Frederick Dubinsky. The union charges that the pilots were given false reasons for their firings. “Every worker should be able to trust that ownership and management will adhere to basic standards of fair play and consistency,” said Airline Division director David Bourne. “Flexjet and OneSky’s decision to terminate these pilots for false and unlawful reasons introduces a level of uncertainty and arbitrariness into the workplace.”


The lawsuit, filed by the terminated pilots, seeks their reinstatement, including back pay, along with a permanent injunction against attempts to interfere with a pilot’s right to unionize. Ricci, however, said the company has been waiting for the Teamsters to file with the National Mediation Board for single representation of Flexjet and Flight Options pilots. The delay in the filing indicates the Teamsters don’t have the support, he said.