JetBlue Airlines 2015 Annual Report Download - page 16

JETBLUE AIRWAYS CORPORATION-2015Annual Report12
PART I
ITEM 1Business
Our growth plans necessitate and facilitate opportunities for talent
development. In 2008, we launched the University Gateway Program,
one of our many pilot recruitment initiatives, which made us the first airline
to provide a training program for undergraduate students interested in
becoming JetBlue First Officers.
We believe a direct relationship between Crewmembers and our leadership is in
the best interests of our Crewmembers, our customers and our shareholders.
Except for our pilots, our Crewmembers do not have third-party representation.
In April 2014, JetBlue pilots elected to be solely represented by the Air Line
Pilots Association, or ALPA. The National Mediation Board, or NMB, certified
ALPA as the representative body for JetBlue pilots and we are working with
ALPA to reach our first collective bargaining agreement. We have individual
employment agreements with each of our non-unionized FAA licensed
Crewmembers which consist of dispatchers, technicians, inspectors and
air traffic controllers. Each employment agreement is for a term of five years
and renews for an additional five-year term, unless the Crewmember is
terminated for cause or the Crewmember elects not to renew. Pursuant to
these employment agreements, Crewmembers can only be terminated for
cause. In the event of a downturn in our business, resulting in a reduction of
flying and related work hours, we are obligated to pay these Crewmembers
a guaranteed level of income and to continue their benefits. We believe that
through these agreements we provide what we believe to be industry-leading
job protection language. We believe these agreements provide JetBlue and
Crewmembers flexibility and allow us to react to Crewmember needs more
efficiently than collective bargaining agreements.
A key feature of the direct relationship with our Crewmembers is our Values
Committees which are made up of peer-elected frontline Crewmembers
from each of our major work groups, except pilots. They represent the
interests of our workgroups and help us run our business in a productive
and efficient way. We believe this direct relationship with Crewmembers
drives higher levels of engagement and alignment with JetBlue’s strategy,
culture and overall goals.
We believe the efficiency and engagement of our Crewmembers is a result of
our flexible and productive work rules. We are cognizant of the competition
for productive labor in key industry positions and new government rules
requiring higher qualifications as well as more restricted hours that may
result in potential labor shortages in the upcoming years.
Our leadership team communicates on a regular basis with all Crewmembers
in order to maintain this direct relationship and to keep them informed
about news, strategy updates and challenges affecting the airline and the
industry. Effective and frequent communication throughout the organization
is fostered through various means including email messages from our CEO
and other senior leaders at least weekly, weekday news updates to all
Crewmembers, employee engagement surveys, a quarterly Crewmember
magazine and active leadership participation in new hire orientations.
Leadership is also heavily involved in periodic open forum meetings across
our network, called “pocket sessions” which are often videotaped and
posted on our intranet. By soliciting feedback for ways to improve our
service, teamwork and work environment, our leadership team works
to keep Crewmembers engaged and makes our business decisions
transparent. Additionally we believe cost and revenue improvements are
best recognized by Crewmembers on the job.
Our average number of full-time equivalent employees for the year ended
December 31, 2015 consisted of 2,857 pilots, 3,108 flight attendants, 3,977
airport operations personnel, 573 technicians (whom other airlines may refer
to as mechanics), 1,268 reservation agents, and 2,754 management and
other personnel. For the year ended December 31, 2015, we employed
an average of 12,351 full-time and 4,511 part-time employees.
Crewmember Programs
We are committed to supporting our Crewmembers through a number
of programs including:
•
Crewmember Resource Groups (CRGs) – These are groups of
Crewmembers formed to act as a resource for both the group members
as well as JetBlue. The groups serve as an avenue to embrace and
encourage different perspectives, thoughts and ideas. At the end of
2015, we had four CRGs in place: JetPride, Women in Flight, Vets in
Blue, and new for 2015 BlueConexion.
• JetBlue Crewmember Crisis Fund (JCCF) – This organization was
formed in 2002 as a non-profit corporation and recognized by the IRS as
of that date as a tax-exempt entity. JCCF was created to assist JetBlue
Crewmembers and their immediate family members (IRS Dependents) in
times of crisis. Funds for JCCF grants come directly from Crewmembers via
a tax-deductible payroll deduction. The assistance process is confidential
with only the fund administrator and coordinator knowing the identity of
the Crewmembers in need.
• JetBlue Scholars – Developed in 2015, this program offers a new and
innovative model to our Crewmembers wishing to further their education.
Crewmembers enrolled in the program can earn a bachelor’s degree
through self-directed online college courses facilitated by JetBlue. The
first term of JetBlue Scholars began in January 2016.
• Lift Recognition Program – Formed in 2012, this Crewmember recognition
program encourages Crewmembers to celebrate their peers for living
JetBlue’s values by sending e-thanks through an on-line platform. Our
CEO Crew, periodically hosts an event for the Crewmembers who receive
the highest Lift award recognitions in each quarter of the year. In 2015,
we saw more than 100,000 Lift nominations.
Community Programs
JetBlue is strongly committed to supporting the communities and BlueCities
we serve through a variety of community programs including:
•
Corporate Social Responsibility (CSR) – The CSR team was established
to support not-for-profit organizations focusing on youth and education,
environment, and community in the BlueCities we serve. The team
organizes and supports community service projects, charitable giving
and non-profit partnerships such as KaBOOM! and Soar with Reading.
• JetBlue Foundation – Organized in 2013 as a non-profit corporation, this
foundation is a JetBlue-sponsored organization to advance aviation-related
education and to continue our efforts to promote aviation as a top career
choice for students. The foundation intends to do this by igniting interest
in science, technology, engineering and mathematics. The foundation is
legally independent from JetBlue and has a Board of Directors as well as
an Advisory Committee, both of which are made up of Crewmembers. The
foundation is recognized by the IRS as a tax-exempt entity.
• USO Center T5/JFK – Continuing our tradition of proudly supporting the
men, women and families of the military, in September 2014 we opened
a USO Center in T5 at JFK. The Center is open seven days a week, 365
days per year for military members and their families traveling on any
airline at JFK, not just JetBlue. This center is fully stocked with computers,
televisions, gaming devices/stations, furniture, iPads, food, beverages and
much more. In conjunction with leading airport design firm Gensler, Turner
Construction Company, the PANYNJ and more than 28 contractors and
individual donors, 100% of the space, services, labor and materials were
donated to ensure the USO Center would be free of any financial burden.
Crewmembers donate time to help run the center.
•
T5 Farm – Creating a healthier airport environment is a core pillar of
JetBlue’s sustainability philosophy. Through a partnership with TERRA
brand and support from GrowNYC and the PANYNJ, we have created
the T5 Farm, a blue potato farm and produce garden at T5. The T5
Farm aims to serve as an agricultural and educational resource for
the community, as well as absorb rainwater and runoff, reducing the
possibility of flooding in the adjacent areas. Items from the T5 Farm are
donated to local food pantries.