zyttocs

I’m doing a little research dealing with industry perspectives regarding requiring a new hire pilot to sign a TWO year training reimbursement contract.

I have my own opinion, but I would appreciate any constructive thoughts and comments regarding personal experience or perspective taking into account the changing pilot demands in the industry, along with your thoughts as to how common two year term training contracts are.

captjns

What’s your opinion?

JohnBurke

Where training contracts are found, the industry standard leans toward 12 months if a type rating is given (in other words, the full type rating course), and six months for a recurrent.

It's also assumed by many that reputable employers don't need a training contract, if paying well enough and treating employees adequately. I don't entirely agree with that, as there are ample pilots who will take the money and run.

I can say I would agree to a 2 year term unless it were a particularly attractive offer, but the contract would require the means to be released if the company wasn't holding up its end. Simply paying for the type rating or the training is not enough; the company cannot be pushing the pilot in terms of duty, rest, flight time, or insufficient notice, or creating an undesirable or unworkable environment. Lay the cards on the table, and if the job isn't what was provided in the cards, then the contract needs to allow for release; it keeps the employer honest, as well as the employee.

Most employers stack the contract in their favor. 100% in their favor. It needs to be equitable for everyone, or it shouldn't be signed.

You may find that unless you're seeking out the low hanging fruit and the very inexperienced, there are enough jobs out there that pilots don't need to prostitute themselves to a two year bond when they can go elsewhere. If you're concerned about pilots skipping town, look at the reasons why before you try to tie them down with a two-year rope.

Personally, I'll make agreements, but over a handshake. If it's not sufficient, you probably don't want me, and I don't want to work for you. The street goes both ways. If a pilot doesn't want to be there, do you really want to insist he stay? Focus on helping him want to stay. Prisons without bars are a whole lot more like home.

captjns

There has no be reasonableness, regarding training contracts, or training bonds, for those sitting on both side of the table.

Many a new first officers will receive a Second in Command (SIC) rating rather than a full type rating, if required.

The liability to the new employee, IMO, should be limited solely to direct expenses incurred by the company, such as, for the type rating, excluding hotels, compensation, per Diem in-house training, transportation etc.

Prospective employees are entitled to a breakdown of costs, related to flight training, only, to which they may be responsible for underhe contract. Expenses attributed to flight training should be annexed to the contract. For example: Dry lease for the Full Flight Simulator (FFS), using company employees to conduct simulator training. Company instructors are on the payroll whether conducting training or sitting in their offices. In some cases where there are no FFSs available, actual aircraft training is involved.

The cost of the type rating or SIC rating, if conducted under a 142 training program, using the training facilities instructors (more expensive)

IOE is not to be included as an expense, as the company is making money on revenue flights.

Now... the plan that will be equitable to both parties...

Pro-rate the exposure to the employee over a reasonable period of time. Deduct the prorated amount from pay which would be deposited into an interest bearing an escrow account. The funds, after the stipulated term, would be distributed to the employee. Care on behalf of the employee must be exercised, so as they are not taxed on the deductions. A taxable event to the employee would take place upon distribution of the funds.

Unfortunately many employers prey upon the wannabes, with a “Take it or Leave it”, plan. “Sign the contract if you want to fly here! The old days where, “They won’t chase me down to collect the reimbursement.” are over. Law firms, and collection agencies, have far long reaching arms. And yes... it will be included on the background check... affect the FICO score... credit rating, etc, and not being hired by that Legacy Airline of one’s dreams

Bottom line... consumer beware!

TiredSoul

Some type ratings are hideously expensive.
Like some of the G’s are in the $50k range.
Just playing devils advocate here and using made up examples:

The employer could get away with $35k first year pay 5-6 years ago.
Now they need to offer $50k first year pay. Which means they need to write off their training cost over a longer period of time.

In the end it’s coming out of your left pocket (initial pay) or your right pocket (training bond) or a little of both.

Don’t forget to thank the dude that brags about three type ratings in a year.

JohnBurke

I met a guy like that last year, ironically at a ground school. He bragged about having 9 type ratings, but from his speech it was clear that he had very little experience. I asked, and he said he had something like 2200 hours. He went from company to company, taking the training, and running. Guys like that are a cancer on the industry.

billsaw

Any place that wants you to sign a one year training contract is somewhere you do not want to work.

Anywhere that wants you to sign a two year training contract.... Hahahahaha...... If anyone needs to be told to run from a place like that I would seriously question their ability to fly an airplane and make judgement calls.

Let that sink in.

PotatoChip

Doesn’t Delta Private Jets require a two year promissory note??

rickair7777

If you KNOW beyond any shadow of a doubt that you want to work at a certain place (good employer, schedules work for you), and that you plan on staying for the full length of the contract anyway, sure go ahead and sign, I would.

If you're planning on staying, it doesn't cost anything other than loss of flexibility in the even of unforeseen circumstances.

But a contract should be a big red flag in that you need to do your homework before committing to anything.

SrfNFly227

I disagree. Executive Jet Management requires 1 year training contracts. They are widely considered as a great employer on the private side.

Whether we like it or not, training contracts are going to be getting more prevalent. Pilots can jump ship entirely too easily in this market and companies (even the good ones) need to protect themselves and the aircraft owners.