Tags: NetJets | Warren Buffett | labor strife | Berkshire Hathaway

NetJets Unit of Buffett's Berkshire Hathaway Faces Labor Strife

By    |   Thursday, 08 January 2015 05:11 PM

Berkshire Hathaway, the conglomerate led by investment icon Warren Buffett, is known for owning companies where workers are content.

But Berkshire's private-jet business NetJets is engaged in a heated dispute with its pilots union. The union has filed a federal lawsuit accusing management of playing dirty pool against its members.

Specifically, NetJets is accused of hacking into the union's password-protected site to view confidential e-mails.

The union also says NetJets management utilized Twitter to make it appear that a pilot was pushing union members to act in a way that could have led them to lose their jobs for breaking labor laws.

"We fly the wealthiest people who expect the best. They're told we're compensated like major airline pilots. That's not the case," Union president Pedro Leroux told CNNMoney.

He said NetJets pilots' pay amounts to only 60 percent of that for pilots at Delta and Southwest.

NetJets spokeswoman told the news service that NetJets has "one of the best compensation and benefits packages in the industry."

Will the spat have any impact on investors who hold Berkshire shares or are considering buying them?

"Perhaps this is standard posturing between labor and management, but it does appear to be getting more contentious," David Kass, a professor of finance at the University of Maryland and a Berkshire shareholder, told The Wall Street Journal.

"And Buffett has said perpetual money or labor problems would be two reasons to exit a company."

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Berkshire Hathaway, the conglomerate led by investment icon Warren Buffett, is known for owning companies where workers are content.
NetJets, Warren Buffett, labor strife, Berkshire Hathaway
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2015-11-08
Thursday, 08 January 2015 05:11 PM
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