NJA/NJI Merger Not a "Done Deal"
 

Just read the LOA this morning.... despite initial rumors I have to point out that it IS NOT a "Done Deal" for integration. It merely maps-out a mutually agreed-upon plan should integration occur. (both the company and the union signed-off on it)

The pertinent line is as follows:

LOA 01-013:

B. Crewmember Protections Following Recognition of a Single Transportation System

1. The company MAY elect to resolve the single carrier issue described in LOA 01-001 by recognizing NJA and NJI as a single transportation system prior to (a) a ruling by the NMB that NJA and NJI constitute a single transportation system or (b) Nov 21, 2010, whichever is earlier.

The plan calls for integration based upon the already-established "date-of-hire" Virtual Seniority List. No displacements would occur (protection for NJI pilots) and the 9 NJI pilots who currently earn more than the NJA TA payscale would be pay-protected until the payscale “catches-up” to them. (the other 316 pilots would actually be getting a payraise)

If integration were to occur, this is certainly the way it should be done. It’s a very fair and balanced agreement. Neither side gets hosed - which would go a LOOOONG way toward esprit de corps amongst the troops. (which in turn, keeps the entire operation flowing smoothly for our customers)

However, as I stated earlier the company is under no obligation to merge NJI and NJA.

It does however, guarantee that from Nov 21, 2008 forward, ALL NJI First Officer positions and 1/3 of the NJI Captain vacancies will be filled by NJA seniority-list pilots. (currently only 50% of the NJA FO vacancies are filled by NJA pilots) After Nov 21, 2008 pilots wanting to work at NJI will have to go through NJA.

The LOA sets the stage for the following possible scenarios:

1. NetJets recognizes the two divisions as a Single Carrier and decides to integrate. In this case, they would have until Nov 21, 2010 to complete the process.

2. NetJets does not recognize Single Carrier status and the NJA Union files the Single Carrier suit on Nov 21, 2008 as originally planned.

*if NetJets looses the case, integration will be handled by the NMB who may or may not follow the plan outlined in the LOA (not a pleasant scenario if anyone has been keeping score of the NMB’s track-record with mergers) – things could get really ugly for BOTH pilot groups

*if NetJets wins the case, the 2 division will operate as usual and the company will continue to "whip-saw" them against eachother

In either situation, due to the fact that NJI pilots will no longer be hiring "off the street" First Officers starting on Nov 21, 2008 -- at some point in the distant future due to retirements and such, eventually all pilots at NJI will have come from NJA.

:cool:

I say again, done deal!! Good luck trying to avoid it in 2010 with 200+ pilots at NJI holding NJA numbers. If Santulli chooses to fight it in court the Mediator will laugh since the pilot force at NJI will be over 30% from NJA

Despite the wording you highlighted in the LOA, this does seem to be a done deal, though I'll be the first to admit there are no guarantees (especially in this business). But, I think it's safe to say it is done based on the fact that neither side wants to throw this to the whims of a mediator/arbitrator. It's best for all parties involved to resolve this internally. A neutral third party will just end up screwing everybody at the end of the day.

Also don't forget about the 85% international flying rule that comes into play in 2013 that makes integration even more likely to be a done deal because it would be impossible to meet that standard without the Gulfstreams on property. It might not even be possible to meet that right now if you include the Gulfstreams in the equation.

It appears you posted the same thing that you or someone else posted on the NJA message board. So don't forget to post some of the responses to the post. Such as...

*The union intends to pursue the single carrier petition as aggressively as before. No backing off because of this LOA unless Mr Santulli follows through on the integration plans spelled out in the LOA.

*At the end of the day, if this whole thing did have to go to the NMB, do you think this LOA helps or hurts our cause?

Sorry Correcting, the only thing I copied on my post was the cut/paste of the LOA -- I'm not the type to snag someone else's ideas. -- Plagiarism ain't my bag Baby!!

If what I posted sounds similar to something someone else said I really can't provide an explanation except that perhaps in a group as large as ours (nearly 3,000 pilots) like-minded people with similar points of view are bound to pop-up. What I posted was the result of my initial reaction to reading the LOA in its entirety. I couldn't understand why everyone was "jumping for joy" and screaming "slam-dunk" when the actual agreement wasn't so open and shut.

Please feel free to offer your own ideas on the comments made by other pilots responding to the post you were referring to.

However, after reading a post by BO this morning.... he pretty much goes on record that the Integration will happen. So there ya' have it, a top Union official stating the inevitable. He went on to make references to "cans of Woop-@$$" -- guess this thing really is a "SLAM DUNK!" :cool:

Here's a question. There are a few guys who don't need the money, and don't want any Captain responsibilities. They are choosing to go to NJI (right seat) instead of upgrading at NJ. If a year later we are merged, what happens to their seniority numbers? does stay where it is, or are they going right to the bottom of the list like a brand new NJ guy?????

Anyone going over to NJI keeps their NJA seniority number. The entire integration plan calls for a merger based on the Virtual Seniority List which is based on "date of hire" at NetJets (whether NJI or NJA) -- so YES, their seniority number would be protected.

You're right, the 85% threshold set in Sec 30 does make integration more likely, but it still doesn't guarantee anything.

Here's a "nightmare" scenario for ya'....

What if, over the next 5 years of this agreement, NJ decides to "ramp-up" NJE and NJChina to the point they are handling say 90% + of the trans-oceanic flying?? (they are under no obligation for the first 5 years of the agreement to give us any of that flying and there is nothing in the 2005 CBA or the 2007 TA to stop them from doing this prior to 2013)

Now, after they've reduced NJA/NJI to a virtual "domestic operation" in 2012 they simply decide not to excercise the 3 year option to extend?

Working from the assumption that NJ wants to extend our agreement makes integration a likely possibility, but what if in 2012 they determine the 3 year contract extension isn't necessary for their objectives??

Either way, as referenced from my previous post (geez, now I'm referencing myself!!!) BO went on record this morning by saying this thing (integration) is in fact, a "Slam Dunk!" Regardless of where the Trans-Oceanic flying goes over the next 5 years, NJA and NJI will be one unified company. ;)