The angry NetJets Pilot’s union set the stage for the most important lesson I learned at this year’s Berkshire-Hathaway Shareholder’s meeting.
NetJets is a Berkshire-owned company, and the pilots union has been in difficult negotiations with the CEO of NetJets for some time. The union coordinated efforts to display their messages to attendees at the shareholder events this year.
They hired an LED billboard truck to drive around and around the giant outdoor shareholder cocktail party. The billboard alternated messages criticizing the NetJets CEO with a cartoon depicting him as a jockey riding the company and whipping it. I was there in the crowd of shareholders, and I found it uncomfortable.
The next day at the main shareholder event, the NetJets pilots picketed along the sidewalk. Union representatives handed red bags to the guests in line, using the guests as couriers to bring their messages, printed on the bags, into the meeting. The union even rented an inflatable blimp to float their combative messages above the crowds. Twitter was flooded with union messages addressed to members of the media, hijacking the official hashtag for the shareholder event. It seemed to me they went out of their way to embarrass Warren Buffett at his own 50th anniversary shareholder celebration.
My emotions went from uncomfortable, to defensive, to concerned about what powerful response Warren Buffett might have to being embarrassed in this way. They were picking a fight with one of the richest and most influential people in the world.
During the meeting an analyst did ask about the NetJet’s union situation. Warren’s answer surprised me.
He heaped praise on the NetJets pilots. He complimented their unwavering professionalism and their high level of skill as pilots. With a lighthearted tone, he talked about how friendly they are, and how he’s always had a safe and positive experience every time he has flown with them.
He acknowledged that the company and the union have a difference of opinion over pay and benefits. He expressed relaxed optimism that the difference of opinion would be resolved soon enough. He cited a couple of facts about the pay and working conditions the pilots currently have. And that was it.
Praise. Acknowledgement. Optimism. Information.
He didn’t mirror the combative tone of the union messages. He didn’t descend to their level of personal attacks and mocking images. He simultaneously put the crowd at ease, and by taking the high road, made the pilot’s union look childish and their tactics look dirty. His relaxed optimism undermined the union’s extensive efforts to make the issue a big ugly deal. By leaving his ego out of it, Warren won the round without a single attacking maneuver.
Well played, and a lesson I won’t forget.