LETTER OF AGREEMENT 01-013
between
NETJETS AVIATION, INC
and
THE PILOTS
in the service of
NETJETS AVIATION, INC
as represented by
INTERNATIONAL BROTHERHOOD OF TEAMSTERS,
AIRLINE DIVISION
This Letter of Agreement (“LOA”) is made and entered into in accordance with the provisions of Title II of the Railway Labor Act, as amended, by and between NETJETS AVIATION, INC. (“NJA” or “Company”), its successors and assigns, and the Pilots in the service of NJA as represented by the International Brotherhood of Teamsters, Airline Division (“IBT”).
WHEREAS, the parties are engaged in Interest-Based Bargaining for a 2007 Basic Agreement to amend their 2005 Basic Agreement;
WHEREAS, this Letter of Agreement supercedes Letter of Agreement 01-003;
WHEREAS, the terms of Letter of Agreement 01-001 will continue in effect following ratification of the 2007 Basic Agreement;
WHEREAS, the parties intend to have this LOA become effective subject to its terms on the date of ratification of the 2007 Basic Agreement.
NOW THEREFORE, the parties stipulate and agree as follows:
| A. | Letter of Agreement for NJA Crewmember Movement to NJI | ||||||
| 1. | All NJA and NJI pilots are on a Virtual Seniority List (“VSL”) at NJI for all purposes for which seniority is used at NJI. | ||||||
| 2. | NJA crewmembers will be offered on the basis of NJA seniority at least one-third of the NJI G-IV posted Captain vacancies, excluding Instructor, Check Airman, and Management position vacancies, and at least one-half of the NJI First Officer G-IV posted vacancies. Effective November 21, 2008, NJA crewmembers will be offered on the basis of NJA seniority all NJI First Officer G-IV posted vacancies. NJA crewmembers bidding for NJI Captain or First Officer positions must have two (2) or more years of service at NJA and must meet the minimum hiring requirements of NJI (i.e., 5000 Total Flight Hours, an FAA First Class Medical, and an ATP with multi-engine land certification). | ||||||
| a. | In the event an insufficient number of NJA crewmembers accept posted NJI First Officer vacancies, the Company shall allow the next NJA new hire who meets the NJI hiring criteria to transfer to NJI immediately after his hire at NJA. The parties acknowledge and agree that NJA in such cases shall not provide a NJA type rating to the new hire crewmember. | ||||||
| 3. | The posted vacancies at NJI are for the G-IV positions. All pilots at NJI will initially fill G-IV positions (e.g., Captain or First Officer). For every vacancy that is filled in the G-V (encompassing the Gulfstream 450, G-V, and Gulfstream 550), there will be a corresponding new vacancy available in the G-IV. | ||||||
| 4. | Transferring NJA crewmembers awarded NJI Captain positions will be seat-locked at NJI for four (4) years. Transferring NJA crewmembers awarded NJI FO positions will be seat-locked at NJI for three (3) years. NJA pilots who transition to NJI must satisfy the seat lock before bidding for a G-V position. Thereafter, Captain opportunities in the G-V will be awarded based on VSL Seniority to Captains in the G-IV. | ||||||
| 5. | NJA crewmembers awarded an NJI Captain or First Officer position will be paid according to the appropriate NJA base 7 & 7 wage tables established in Section 27 of the 2007 Basic Agreement based on their NJA date of hire. | ||||||
| 6. | NJA crewmembers employed by NJI will retain and accrue NJA seniority and will have retreat rights to NJA, subject to the seat locks in Paragraph 4, above, and the provisions of Paragraphs 10 and 11, below. | ||||||
| 7. | NJA crewmembers who transfer to NJI employment are subject to NJI’s training process and training requirements and work rules. | ||||||
| 8. | NJA crewmembers moving to NJI will receive employment benefits at NJI substantially equivalent to those at NJA. The parties stipulate that the employment benefits provided by NJI at the time of ratification of the 2007 Basic Agreement are substantially equivalent to those set forth in the 2007 Basic Agreement for NJA crewmembers. | ||||||
| 9. | Notwithstanding the provisions of Paragraphs 1 – 8, above, NJI reserves the right to hire Captains and First Officers directly into NJI in the event a marketing/sales opportunity is facilitated by this commitment or as a result of an obligation which results in a closed sale. For example: NetJets displaces the flight department of Corporation “X” by selling fractional shares and hires the Corporation’s pilots as an element of the transaction. | ||||||
| 10. NJA crewmembers who accept positions at NJI pursuant to this Letter of Agreement will remain as active Local 1108 members consistent with Section 11 of the 2007 Basic Agreement in order to retain and accrue seniority. | |||||||
| 11. | Work Rules and Dispute Resolution | ||||||
| a. | Competitive status disputes involving NJA crewmembers who move to NJI (such as disputes about upgrade, vacation preference or operational work rules) will be resolved by the NJI Grievance-Arbitration procedure, which will provide for binding, neutral arbitration and the employee’s right to be represented by a person of his own choice. The procedure will be substantially similar to the grievance-arbitration procedure applicable to scope disputes in the 2007 Basic Agreement, which will provide for a final and binding decision by a neutral arbitrator acceptable to NJI and the employee or his representative. | ||||||
| b. | The Company will promptly provide the Union with NJI work rules and discuss any questions about the rules and their application. The Company will give the Union advance notice if NJI modifies its work rules and will be available to discuss the modifications with the Union. NJA crewmembers who are adversely affected by substantial changes in NJI’s work rules may retreat to NJA and resume employment under the NJA/IBT collective bargaining agreement with no further right to future employment at NJI. | ||||||
| c. | NJA crewmembers who move to NJI and are subsequently the subject of a discharge decision or serious discipline (a suspension greater than thirty (30) days or the equivalent) may grieve the discharge or serious discipline before the NJI Grievance-Arbitration procedure. The decision of the NJI Grievance-Arbitration procedure will be final and binding on NJI and the grievant with respect to employment at NJI. If the decision of the NJI Grievance-Arbitration procedure is adverse to the grievant, the aggrieved pilot may exercise a retreat right to NJA; provided, that in cases where the discharge or serious discipline at NJI calls into question suitability for continuing employment at NJA, such as negligence resulting in serious damage to property or personal injury, dishonesty, violation of FAR(s) or Company Operating procedures, or criminal conduct, NJA may deny employment or take the same or lesser disciplinary action as had been imposed by NJI, subject to the pilot's right to grieve NJA's action pursuant to Sections 21 and 22 of the collective bargaining agreement between NJA and the Union. If the crewmember exercises retreat rights to NJA, he will have no further rights to future employment at NJI under this LOA. | ||||||
| d. | All disputes over the interpretation and application of Paragraphs 1 - 11 will be resolved pursuant to the grievance procedure applicable to scope disputes in the 2007 Basic Agreement. | ||||||
| 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 at any time prior to (a) a ruling by the National Mediation Board that NJA and NJI constitute a single transportation system or (b) November 21, 2010, whichever is earlier. The Company will simultaneously provide written notice (a “recognition notice”) to the Union that it has recognized NJI as part of a single transportation system. The provisions of Paragraphs 2 - 5, below, will have no application if the Company does not recognize NJA and NJI as a single transportation system within the time period allowed by this Paragraph. | ||||||
| 2. | In the event that the Company exercises the election and provides the recognition notice, the parties will promptly commence integration of the NJA and NJI Seniority Lists into a single NetJets Aviation, Inc. Pilot Seniority List established in accordance with LOA 01-011. There will be no system flush or removal of pilots from their positions. | ||||||
| 3. | NJA and NJI may operate separately under the terms of this LOA through and until November 21, 2010. The Company may terminate separate carrier status and commence operations as a single transportation system prior to November 10, 2010 by sending a second written notice (“final integration notice") to the Union. The provisions of Part A will remain in effect until such time as (a) the Company provides the final integration notice described in this Paragraph; or (b) November 21, 2010, whichever is earlier. Any Seat Locks incurred pursuant to Paragraph A.4 will convert to Equipment Locks as established in Paragraph B.4.f. and continue for their original duration; provided, that no Seat Lock converted to an Equipment Lock pursuant to this Paragraph will extend beyond November 21, 2012. | ||||||
| 4. | Subject to the following conditions, the terms and conditions of the 2007 Basic Agreement will apply to all crewmembers on the NetJets Aviation, Inc. Pilot Seniority List, including those at NJI, at the time of the final integration notice or November 21, 2010, whichever is earlier: | ||||||
| a. | There will be no system flush or removal of pilots from their positions. | ||||||
| b. | NJA and NJI will not offer positions on the 15-Day Flex Schedule described in subsection 19.1(C) to crewmembers operating either the G-IV or a successor Gulfstream aircraft. For purposes of this LOA, a “successor Gulfstream aircraft” includes the Gulfstream 450, G-V, Gulfstream 550, and any other flight-attended Gulfstream aircraft. | ||||||
| c. | NJA and NJI crewmembers employed by NJI will not suffer a reduction in pay as a result of the recognition of NJA and NJI as a single transportation system and will receive annual wage increases commensurate with annual wage increases received by an NJA crewmember receiving similar pay at the time such pay protection is initiated. A crewmember receiving pay protection pursuant to this subparagraph will forfeit the right to such pay protection in the event that he bids and is awarded a position in an aircraft other than either the G-IV or a successor Gulfstream aircraft. | ||||||
| d. | All posted vacancies in G-IV aircraft will be bid and awarded on the basis of seniority. | ||||||
| e. | All posted vacancies in the G-V aircraft and any successor Gulfstream aircraft will be filled on the basis of seniority only from among those crewmembers holding positions in either the G-IV or successor Gulfstream aircraft. | ||||||
| i. | Captain vacancies in the G-V and successor Gulfstream aircraft will be filled only from among those crewmembers holding Captain positions in the G-IV or successor Gulfstream aircraft. | ||||||
| ii. | If an insufficient number of non-locked Captains in the G-IV or successor Gulfstream aircraft bid for a position posted pursuant to Paragraph B.4.e, the Company will waive Equipment Locks for Captains in the G-IV and successor Gulfstream aircraft and repost the vacancy. If, after waiving Equipment Locks pursuant to this subparagraph, there are still an insufficient number of bidders, the Company will repost and award the vacancy on the basis of seniority. | ||||||
| f. | Gulfstream Equipment and Program Locks | ||||||
| i. | A crewmember who is awarded a G-IV aircraft vacancy, other than a crewmember described in subparagraph (ii) below, will incur a twenty-four (24) month Gulfstream Equipment Lock in the G-IV and a sixty (60) month Gulfstream Program Lock. The Gulfstream Program Lock incurred pursuant to this subparagraph will run concurrently with the Gulfstream Equipment Lock described above and will prevent the crewmember for a period of sixty (60) months from bidding and being awarded a seniority-based vacancy in any aircraft other than the G-IV or a successor Gulfstream aircraft. | ||||||
| ii. | A crewmember holding a position in the G-IV or a successor Gulfstream aircraft who is awarded a seniority-based vacancy in a subsequent Gulfstream aircraft will incur a thirty-six (36) month Gulfstream Equipment Lock, which will run concurrently with any Gulfstream Program Lock remaining in effect at the time of the award. | ||||||
| iii. | Any Seat Locks in effect at the time NJA and NJI commence operations as a single transportation system will convert to Equipment Locks and continue for their original duration; provided, that no Seat Lock converted to an Equipment Lock pursuant to this Paragraph will extend beyond November 21, 2012. | ||||||
| g. | The parties agree that no crewmember will be displaced from his existing base airport solely as a result of resolution of the single carrier issue described in Paragraph B.1. | ||||||
| 5. | Notwithstanding any other provision of this LOA, NJA and NJI may continue to operate as separate affiliates. All Gulfstream 150s and 200s as well as derivative types and models of those aircraft will be flown under the Company’s operating certificate by crewmembers on the Seniority List under the terms and conditions of the 2007 Basic Agreement. Notwithstanding any other provision of this LOA or the 2007 Basic Agreement, the Company will retain sole discretion at all times to operate all other Gulfstream aircraft (e.g., the G-IV and successor Gulfstream aircraft) under the NJI operating certificate. | ||||||
| Signed this 7th day of December, 2007 | |||||||
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