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Old 10th Oct 2012, 18:47
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doggedpilot
 
Join Date: Oct 2012
Location: glasgow, uk
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Big Redundancies Coming at Netjets?

Found this in a pilot lounge:

Please find below details of the launch of a Redundancy Consultation for Pilots in Command (PICs) which I have just announced to all affected pilots.

A revised gateway policy reflecting these changes will be circulated to all crew members today and comes into force with immediate effect. From today all permanent gateway moves will be suspended for the duration of the consultation period.

I fully recognise that this is difficult news. However in such challenging global conditions, this is a necessary step in order for the company to remain competitive, and I trust that I can continue to rely upon your professionalism to keep the NetJets spirit going through the challenging period ahead.

If you have any questions, please feel free to contact me.

Dear Colleagues,

As you are all aware, NetJets Europe has over the last few years faced unprecedented market conditions.

The prolonged downturn in the economy has led to a fall in demand for business aviation. In the circumstances, we have had to look at whatever steps we can take to control and reduce our own costs to safeguard the competitiveness of our business.

Currently, we employ 780 pilots of whom 529 are pilots-in-command (PICs) and 251 are seconds-in-command (SICs). Our assessment is that, whilst we do not have any excess of SICs (and they are not therefore affected by this proposal), we need to reduce the total number of PICs by 128.

In addressing this matter, we have to take account of another issue facing the business which is a significant change in European social security regulations. As you are aware from previous communications, the current position is that under EU law the UK system of social security contributions applies to crew employed by NetJets Management Limited (NJML). However, a new European regulation that has come into force now affects the social security regime applicable to crew based upon the country in which their gateway is located. We estimate that based on current crew levels and social security rates, these changes will cost the business an additional 6.3m Euros per year in employer contributions.

If the necessary reduction in the number of PICs cannot be achieved through voluntary redundancy, then the proposal is to select PICs for compulsory redundancy based first on the employer social security rates of their gateway country and secondly, where employees have gateways in the same country, by reference to their salary costs. Therefore, French and Belgian gateway PIC's will be first to go. It is proposed that PICs who are made compulsorily redundant would receive their contractual notice and a redundancy payment calculated in accordance with UK law but not any enhanced severance package.

In addition to the proposals outlined above, we have decided that, while gateways in the following countries will remain open for PICs and SICs already operating from those gateways, they will be closed to new moves:
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