PPRuNe Forums

PPRuNe Forums (https://www.pprune.org/)
-   Terms and Endearment (https://www.pprune.org/terms-endearment-38/)
-   -   Training bonds - enforceable or not? (https://www.pprune.org/terms-endearment/625394-training-bonds-enforceable-not.html)

Banana Joe 14th Sep 2019 20:03

In my airline, the trained pilots are on a reduced salary for 3 years. AeroLogic retains for 3 years an amount of €208,33 from the basic salary.

KeepCalm 15th Sep 2019 13:15

jetblast101

I'm afraid I wasn't precise enough there. I had a few conversations about this in the past with my wife and I had the understanding it was EU-law.
Took a look on the internet, but could not find anything in EU labor law, but just in the Spanish "generic labor law", where it says the employer may ask for a training bond to be signed, for a maximum period of 2 years (very generic)
Asked the missus and she told me that it does not specify that it has to be pro-rata, as it's a common "law-convention".

And she also told me if taken to court it depends on what the judge deems reasonable, that you would need to check on previous sentences (precedent). Her understanding is that an employer would have the right to enforce a type rating bond, as it's something that you can carry on to your next employer and/or gives an advantage to your next employer, but for instance the OCC (operator's conversion course) would not be eligible as it's company-specific training.

Having said that, the type rating bond contract has to be well-written and has to be reasonable (as already said by other colleagues in this thread) for it to not be shot down in court straight away (this applies to any kind of contract really). For instance, abusive clauses or quantities claimed (i.e. asking for a compensation of 25k, if the type rating cost for the company is 15k) would probably make the employer lose the case.

ratpackgreenslug 15th Sep 2019 23:33

oggers

All very Jim Dandy and copacetic mate - but an airline must pay the costs of crew training as it's the cost of doing business mate - and it's a cost not to be paid by the employee. If an airline can't afford training costs then it can't afford to operate as it's dangerously underfunded. Note the BA fight and hope the rewards tumble downhill mate. Period.

RAFAT 16th Sep 2019 23:04

CargoOne - TUI in the UK has a bond which is repaid via a salary reduction, even for type-rated pilots! Hence I didn't apply.

Banana Joe 17th Sep 2019 02:53

Hear hear... Why would it be the case? Now that I know this I am happy that their lady 787 FO in charge of recruitment rejected my application before I even applied.

dirk85 17th Sep 2019 08:23

Wizzair does the same, but you didn’t mind applying.

Banana Joe 17th Sep 2019 09:42

I applied as NTR, the bond in that case made sense. If I paid for the TR on my own with no base training, they would provide me base training and they would only require a minimum of one year commitment, but no money withdrawn from the salary was mentioned.

I don't see why I need to be bonded by TUI when I am already qualified and fly the 737 for a living. That does not make sense.

dirk85 17th Sep 2019 09:58

You were speaking about 787 before, not 737.

Banana Joe 17th Sep 2019 10:36

The lady in charge of recruitment is a 787 FO in TUI.

deja vu 17th Sep 2019 12:21

TinFoilhat2

Absolutely correct.

The thing that amazes me is that those companies that want a bond, pay only 50% salary during line training and other unethical practices then expect LOYALTY!

deja vu 17th Sep 2019 12:45

Snr

Wow, now I see why this industry is so screwed up and so many :mad: operators survive. Disgraceful.

Snr 17th Sep 2019 15:39

May I ask why? I work for a regional "training airline" if you will. Things are far from perfect, but the vast majority of those that leave within their bond period do so because they want to fly a shiny jet, or go long haul to explore the world. That's fair, each to their own, we all have different goals in life. If everyone that left within the first year paid no bond back, the airline would be paying £15k training costs, plus 1 year salary, to only get 1 year of service out of them. That is unsustainable long term. That money could be used to increase wages for current pilots.

This isn't a question of the airline using a bond to keep T&C's low, or make money from new pilots. The people leaving aren't doing so because another operator is offering better pay and conditions, they are leaving because they had no intention of staying in the first place. I don't know any figures for who ends up paying and who doesn't, but everyone I know who has left has dutifully paid their bond, factoring that cost into their career decision. Any quite frankly they are happy (happy enough anyway) to do so, having signed the bond and been given their first airline job in the process.

Are you saying that pilots who are happy where they are should be the ones paying the price for those who break a legal agreement? Because I'll say it again - if everyone that left in the first 3 years didn't pay back their bond, the airline has 2 options. Ask for training fees up front, or go bust. There is no other sustainable option.

TinFoilhat2 17th Sep 2019 16:57

There you have it....go bust because they can’t afford the training fees. If that was never factored into their business plan then they should not be in business.

if they factored in all of these costs plus offered decent T&C,s as well as QOL and decent treatment from management then they would have extremely low turn over.

Again it is the cost of doing business and if they cannot afford it then they should not be in business.

Officer Kite 17th Sep 2019 17:18

This isn't unique to piloting. When any company invests a significant amount in you most would expect some return on investment. They have spent the money and are within their right to do so. It's unreasonable to expect a comoany to sign everyone up for 20k then have everyone leave and the company keep bleeding cash and no one questions why when they never get their return.

TinFoilhat2 17th Sep 2019 19:06

If you look after your employees financially and give them quality of life you won’t have that problem.

when employees leave, it’s just business. They have families to support and will do what is in their best interest so look after them and they won’t leave.

If you can’t afford to or won’t then you should not have gone into business.

Just like when times are tough for companies during economic downturns they will cut employees loose in the blink of an eye regardless of their mortgage, kids school fees, food for their family etc and their motto is it’s nothing personal..,Just business, well it works both ways.

arketip 17th Sep 2019 19:11

Do you really expect a regional/commuter airline to be able to pay and give same conditions like a major/legacy?

Officer Kite 17th Sep 2019 23:26

TinFoilhat2The issue is a sizeable portion of those who join regional carriers have no intention of staying at all, they want to fly heavy metal as soon as they can and it has nothing to do with terms or conditions at the regional. Nothing wrong with that at all, we all have our aspirations, but what makes us think we don’t need to accept the bills we’ve built up for the airline that have effectively been used as a stepping stone?

I’m all for keeping our t&c’s acceptable but in this case I struggle not to side with the airline. Someone has joined, taken advantage of an airline who were willing to give them their first break and paid their rating (they absolutely don’t have to in the current climate for low hour pilots) that likely allowed them to even get the experience before the airline wih the heavy metal would even look at them, then it’s acceptable for them to just wander off? Especially for airlines that don’t deduct the tr from your salary and are trying to be ethical when others are charging 50k for the rating and line training, i think this is really poor form. Where is the encouragement for an airline to pay for the tr of young pilots in future who can’t afford it up front? If everyone ran for the hills there wouldn’t be an airline on the planet with a half competent financial department that would pay for anyone’s rating, then we’d all come on here moaning that no airline is willing to sponsor new aviators for the tr after they’ve forked out on an ATPL. Well who is to blame when we threw it back in their faces everytime they tried doing something even half ethical.

deja vu 18th Sep 2019 02:08

I am trying to think of any other industry that expects newly hired full time employees to pay for training on the employers equipment. Not only that but to forgo salary during that training in some cases and then be placed on a probationary period where summarily dismissal is an employers option.

Snr 18th Sep 2019 06:55

That's the whole point of this argument. Some airlines (including my own) don't charge newly hired employees to pay for training. The airline pays for the training, and in return asks you to stay for 3 years. No salary sacrifice until you're passed the line check, no money upfront to cover costs. That's completely fair in my book.

deja vu 18th Sep 2019 07:20

When you say your airline asks newly hired employees to stay for 3 years, what happens if they don't.? And does your airline guarantee that they will continue to employee this new hire over that 3 years?

TinFoilhat2 18th Sep 2019 07:44

Officer KiteWell let’s reverse that then. Use myself as an example. I have thousands of hours on both turboprop and jet aircraft in charter work and airlines.

Lets say you need to hire pilots and you don’t want to sponsor the young guys with no experience in case they run away early (which is unlikely because a major airline unless desperate is not going to hire a pilot without serious experience first) so you decide to go after a pilot like me or one of the many experienced guys on here who have multiple type ratings.

So let’s say I fly the type you are looking for, what are you going to offer me? I’m sure as hell not taking a pay cut out of the goodness of my heart to work for you, you are not typing me so all that is left is T&C’s, salary and QOL.

which means if you can’t afford us experienced guys you need to go after cheaper inexperienced Labour and ensure they are typed on your aircraft you purchased or leased to make money off. That is your responsibility to your business and possible shareholders.

It is not a pilots problem whether you can afford to or not. You as a responsible businessman need to ensure your pilots will stay for a certain amount of time because it’s not the cost of a TR that will bankrupt you, it is aircraft sitting on the ground.

No other industry in the world charges their employees to work for them and help reduce their business costs. If you choose not to type those inexperienced young guys that’s fine but you won’t have any pilots because you cannot afford us experienced ones so you simply go out of business.

So again, factor in all cost of doing business and ensure the carrot is big enough and juicy enough for 95% of your pilots to do their 3 years. If Emirates comes along and offers them the A380 on huge salaries, well that’s part of the risk of going into business and you knew that from the beginning.

As I said above earlier when times are tough for companies they just shred and cut loose employees in the blink of an eye regardless of their families, mortgages, medical bills etc yet the directors and CEO’s collect their huge bonuses and take no pay cuts so dont blame the little guy for looking after himself.

Pilots never made the rules but are entitled to play by them, it works both ways.

TinFoilhat2 18th Sep 2019 08:13

Snr

It may seem fair but in the grand scheme of things when there is a downturn and money is tight will the company honour the agreement they signed with you when they employed you, most likely not.

To them it’s just business and you knew the risks of becoming a pilot in a very volatile industry. In other words they are looking after their best interests and the company.

Well a pilots company is himself and his family. When opportunity arrives to look after their best interests they like the company have every right to do so.

You can’t bring the moral argument against the pilot but not the company when they let people go for business reasons, works both ways.

Your company does not charge newly hired inexperienced guys because they cannot afford to hire the typed experience guys so they really have no choice as they can’t get pilots otherwise.

So factor in ALL COSTS including a type rating before hiring in the event you lose a guy early but if your T&C’s are good enough 95% will prolly do their 3 years as they know they need proper experience before going anywhere else like a major airline.

Imagine I open a Sushi restaurant and I tell the chef I’m bonding him for 3 years for using the kitchen because he has no real world experience and I put him thru a specialized Japanese sushi course.

I chose to open the restaurant knowing the risks involved and am responsible for factoring in all costs. It’s not the chefs fault I go bankrupt because I did not hire or could not afford an experienced Sushi chef so went the cheap route and got an inexperienced guy..

Then Gordon Ramsay opens up across the road and with a lot more money offers this guy a job in a restaurant that is going to do wonders for his career and he takes it because he is married and has 2 small children to support.

Can you really blame the young chef for grabbing a once in a lifetime opportunity.

The end result for the first restaurant owner all boils down to the fact he never factored in the costs of doing business and what happens if he loses his chef. Knowing this if your argument is well it’s then too risky to give these young guys a chance then hire experienced guys but be prepared to stump up the cash and good benefits.

Either way it’s going to cost you and you still need to factor in all of these expenses. Pay for type ratings with lower salaries or get experienced typed guys and end up paying a lot higher salaries (more than the cost of a TR) but either way....

It is the cost of doing business and there is no way around it.

Your business costs are not the responsibility of the pilot nor are they his concern. You knew the risks and if you could not afford it or never planned properly that is your problem and yours alone. It is simply business.

Snr 18th Sep 2019 12:49


Originally Posted by deja vu (Post 10572593)
When you say your airline asks newly hired employees to stay for 3 years, what happens if they don't.? And does your airline guarantee that they will continue to employee this new hire over that 3 years?

If they don't stay for the 3 years (many do leave within that period with the current market) then they repay the bond, which has been reducing. So the £15k bond as an example results in the pilot repaying £10k if they leave after 1 year. If you stay the 3 years, you have a TR you've not paid a penny for.

The airline guarantees your employment for the 3 years (and longer) - of course potential redundancy is a threat for any airline employee outwith a legacy carrier, but in my 5 years no-one has been forced to leave the company for anything other than misconduct.

Snr 18th Sep 2019 13:10

TinFoilhat2What you are asking is not really the point of this thread. I can't say what my company offers for TR pilots as we don't get them that often, but I would imagine there would be a negotiation on the cost and length of the bond if you are already rated. Either way - this thread is about whether you can/should break a Training Bond. Get your job offer, and associated bond conditions, and make your choice. If you aren't happy joining a company and being bonded, then look for a job elsewhere. If you sign on the dotted line, then see through your agreed term, or repay what you owe. It's that simple.

As for a few of your other points. You must not be up to date on the current industry recruitment, because every major airline is hiring pilots with low hours. A selection of carriers that have taken 500-1000 hour FO's from my airline in the past few years - BA, Air France, Tui, Jet2, EZY, Ryanair, Thomas Cook, Iberia, Air Baltic, Swiss, Are Lingus, Condor, Cargolux. So that's 6 months to a year before they can leave for pastures new.

Comparing a professional pilot and an airline to a chef is absurd. If a restaurant had to pay £15,000 to train the chef in his sashimi course, as well as pay his wages for 3 months before they see any return, I can guarantee they would made to sign a bond as well. Or asked for it upfront....

Des.Vaisselles 28th Oct 2021 11:21

Hi guys,
I have a situation that could use a little help/guidance.
I work with RYR.
When I joined as cadet they asked for 5 grand up front and a 20k bond reducing over five years.
I needed a job, I signed...
With Covid hitting, the finances a going down the drain, I had to change to part time because they unilateraly changed the roster and is not commuting compatible anymore.
I have an other opportunity with a company but I still have this bond pending.
Couple of questions:
Does the fact that the actual conditions are completely different than the conditions when you signed voids the bond (or makes it disputable)?
Is 25 000 eur considered fair for TR737? (with no transport/accomodation etc paid for)
Does anyone have any story or experience in breaking a bond with ryr to know how they proceed?

To be fair, if they ask I will most likely pay my bond and swallow the pill. It just feels really bad having to pay these guys after such a hard time and work in their ranks with reality far from what they promised.
I am not looking for an opinion on whether or not it is honorable, that decision and consequences rests with me.

iggy 28th Oct 2021 12:26

I have no idea about how FR will proceed if you skip your bond, although I guess they will be very careful to not give the image that skipping a bond doesn't come with consequences.

But I can tell you, based on my own experience, that not having a release letter from one of your previous employers, and/or not having proof that one has fulfilled the contract with all the penalties carried, is going to make you passing an interview very difficult in the next few years, whether you are in the right or not. You could get away with it if it was a small company or an operator that nobody has heard about. But you'll find out (and if you joined FR as a cadet, then FR was your first employer) that everybody knows everybody in the aviation business, that most guys interviewing you will know exactly what were the terms you signed with FR and will be expecting a release letter or a recommendation letter, and that it will be very easy for any management pilot to just lift the phone (or switch on whataspp), contact his bro with whom he did his initial training with, throw him your name, and find out if you can be trusted or not, given your past behaviour. And that is exactly what they will do, they will not give a rat's ass about your reasons and the circumstances that made you not fulfill your contract.

25k EUR is an eye watering sum to give away nowadays, but it might be the difference between you getting that job at home that you are so desperate in need of, or just burning a bridge with yet another employer for the foreeseable future.

Des.Vaisselles 28th Oct 2021 13:06

I contacted a guy from the union yesterday and he gave me the same answer as you did. And it makes sense.
They tend to drop the bonds when they are letting go of pilots but I guess that is not the case nowadays.

tubby linton 28th Oct 2021 17:58

I remember a very long time ago the chap who did the recruitment at Elan Air in East Midlands went after through the courts a pilot who left early for the balance of his bond. I was always led to believe that training costs were tax deductible to the company but I cannot remember how this particular issue was resolved.

Kirks gusset 28th Oct 2021 21:18

https://www.ipapilot.com/about-us/bl...necessary-evil

Worth a read

Des.Vaisselles 29th Oct 2021 09:20

interesting indeed. Thanks for the article


All times are GMT. The time now is 08:58.


Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.