Leaving with a bond?

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anofly
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Re: Leaving with a bond?

Post by anofly »

I know of a non aviation business that has a 2 year bond. Folks are signing... 30k$, not pro rated...
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Re: Leaving with a bond?

Post by complexintentions »

bcflyer wrote: Mon Feb 10, 2020 5:15 am Let me see if I have this right. You know the company has a long bond, you know you won’t like the location and you are still thinking about taking the job? If you can’t make the commitment that they want don’t take the bloody job!! I’m sounding old but in my time if you made a commitment you followed through on it.I’m shocked that anyone would support you in screwing over a company.

This is the exact reason we have training bonds in the first place!!!
I'm not sure how two parties entering into a contract, and then both abiding by it, is somehow "screwing over a company"?

There are multiple reasons for training bonds, but principally it's a way for the company to try and ensure some ROI for the significant training costs involved. As rookiepilot correctly identifies, anyone who can't grasp that fundamental fact has probably never so much as attempted to start and run a business - of any size. The casual dismissal of the difficulties of running a small business, especially in a socialist country like Canada, would be hilarious if it wasn't so sad. But that's another topic.

If anything, having things clearly defined in black and white terms, with the amounts of time and money expected laid out in a legal contract, is far preferable than massive misunderstandings and legal recriminations when ones employment situation inevitably changes.

confusedalot, not liking being bound to something, does not make it "a scam". I couldn't really tell what it was about your bond that makes you feel it is unfair, I assume there is more to the story?

To the OP, only you can judge what is "unusually long" for a bond, or if you can financially handle the penalty should you leave early. But if you truly intend to honour the terms and believe it to be good career opportunity, I see no reason to not take it. Of course it also follows that your performance during whatever time you spend there should be beyond reproach, and that you're respectful with how you handle any early departure - proper notice and so on. Always be a professional, and always try to have some empathy for your employer's needs not just your own. Your own success is linked to theirs, after all.

As to worrying about the new employer, if you present it correctly in the interview, they'd very likely be a) impressed that you abided by the terms of your previous contract and b) flattered that you felt the financial penalty of doing so was worth it to join THEIR company.

As in all things in life it's as much about how you do something as what you do...
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Last edited by complexintentions on Tue Feb 11, 2020 7:29 am, edited 1 time in total.
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Re: Leaving with a bond?

Post by godsrcrazy »

You guys are all missing what Cessnaguy66 said. He wants to go to a company and commit to the terms of employment knowing he will not stay the term. This is exactly why bonds are in place. I will tell you what you want to hear. However as soon as i get my PPC and hours i am gone.

At minimum PPC should not be transferable. Most companies offering more money is due to stealing people with Current PPC's and saving money on type endoresments and PPC's.
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Re: Leaving with a bond?

Post by AirFrame »

godsrcrazy wrote: Tue Feb 11, 2020 7:28 am You guys are all missing what Cessnaguy66 said. He wants to go to a company and commit to the terms of employment knowing he will not stay the term.
The term is only one of the terms of employment. The bond is another term of employment, that he intends to make use of in lieu of working the entire term. He *is* meeting the terms of his contract. I agree with the others though... If it's so great to work there that he won't want to leave, the company wouldn't need the bond.
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Re: Leaving with a bond?

Post by digits_ »

godsrcrazy wrote: Tue Feb 11, 2020 7:28 am You guys are all missing what Cessnaguy66 said. He wants to go to a company and commit to the terms of employment knowing he will not stay the term. This is exactly why bonds are in place. I will tell you what you want to hear. However as soon as i get my PPC and hours i am gone.

At minimum PPC should not be transferable. Most companies offering more money is due to stealing people with Current PPC's and saving money on type endoresments and PPC's.
Nobody is missing what Cessnaguy66 said. That's the beauty of bonds: you can do this with a clear conscience. If there was no bond, and you do the training, you leave after 3 months, then you are an asshole. If you do the same when there is a bond, and you pay out the bond, well, then that is perfectly ok. The company might not like it, but you have paid the "fine". If a company implements a bond, it becomes a financial transaction, and things like "honor","commitment" and "be a nice guy" become meaningless.

Although there are always exceptions, if a company makes you sign a bond, there is a big chance you'll be wanting to leave before that bond is up. If it was a good job, there would be no bond.

By the way, how many pilots do you think have claimed that flying a broken 206 is the reason they went into aviation and wanted to fly for a small 703 operation all their life, 24/7? Priorities change. Plans change. Thinking about that is commendable.
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Re: Leaving with a bond?

Post by complexintentions »

godsrcrazy wrote: Tue Feb 11, 2020 7:28 am You guys are all missing what Cessnaguy66 said. He wants to go to a company and commit to the terms of employment knowing he will not stay the term. This is exactly why bonds are in place. I will tell you what you want to hear. However as soon as i get my PPC and hours i am gone.

At minimum PPC should not be transferable. Most companies offering more money is due to stealing people with Current PPC's and saving money on type endoresments and PPC's.
Didn't miss that at all. If his terms of employment include a provision to leave the bond early with a financial penalty, then if he pays the penalty he is most certainly meeting his commitment - that's why the provision is in the bond.

The workings of market dynamics is not "stealing people" lol. It's called competition. Bonds simply mitigate the very risk you describe, of having one employer benefit from another's investment. While I certainly didn't enjoy being bonded, I don't pretend to not understand this.

My current contract has no bond due to coming to it with the type rating and significant experience. The job where I originally obtained the rating had a bond, and I was there far longer than the duration of it. That rating has since paid for itself so many times over it's insignificant. But if I had wanted to leave early, I would have without hesitation, knowing exactly what the consequences were.

digits_ wrote: Tue Feb 11, 2020 7:48 am If a company implements a bond, it becomes a financial transaction, and things like "honor","commitment" and "be a nice guy" become meaningless.
Honor and commitment are never meaningless. But any paid job, at its core, is always a financial transaction: you are exchanging your time for money.

How about doing a decent cost-benefit analysis before making any decision involving money?! Perhaps if more people ran their career a little more like a business and less like a seeking for fulfillment and a higher calling, it would eliminate a lot of the confusion... :mrgreen:
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Re: Leaving with a bond?

Post by digits_ »

complexintentions wrote: Tue Feb 11, 2020 8:06 am
digits_ wrote: Tue Feb 11, 2020 7:48 am If a company implements a bond, it becomes a financial transaction, and things like "honor","commitment" and "be a nice guy" become meaningless.
Honor and commitment are never meaningless. But any paid job, at its core, is always a financial transaction: you are exchanging your time for money.
Okay, fair enough, let me rephrase and clarify a bit.

If a company hires you, without a bond, they ask you to stay for a year and you agree, then you should honor that. Leaving early would be a dick move.
If a company hires you, makes you sign a bond, and you leave early while paying the bond amount, you are doing nothing wrong. If someone then tries to make you stay by guilting you that you should honor your commitment or be a nice guy and not leave your employer hanging, that becomes meaningless.
complexintentions wrote: Tue Feb 11, 2020 8:06 am How about doing a decent cost-benefit analysis before making any decision involving money?! Perhaps if more people ran their career a little more like a business and less like a seeking for fulfillment and a higher calling, it would eliminate a lot of the confusion... :mrgreen:
True true. The only problem with that is that you often don't know exactly what a job is like until you start working at the company.
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Re: Leaving with a bond?

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digits_ wrote: Tue Feb 11, 2020 7:48 am If a company implements a bond, it becomes a financial transaction, and things like "honor","commitment" and "be a nice guy" become meaningless.
Tell me you're kidding -- right? Duh. Yeah it's a financial transaction, with a real dollars investment by the employer, that they expect to be paid back. In a written agreement. They aren't your best buds.

Want to not have a bond? Cut your wages. Nothing is for free. Learn to negotiate professionally. Should be taught in school, along with basic financial principles----but I digress.

If a roofer does your house, and you don't pay, guess what? He's going to lien your house, and probably immediately. He won't care how much honor you say you have. He's got a business to run!
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Re: Leaving with a bond?

Post by digits_ »

rookiepilot wrote: Tue Feb 11, 2020 11:21 am
digits_ wrote: Tue Feb 11, 2020 7:48 am If a company implements a bond, it becomes a financial transaction, and things like "honor","commitment" and "be a nice guy" become meaningless.
Tell me you're kidding -- right? Duh. Yeah it's a financial transaction, with a real dollars investment by the employer, that they expect to be paid back. In a written agreement. They aren't your best buds.
Exactly. Did you read my previous message?

If you sign a bond, of course you have to follow the terms of the (written) agreement, but in return the company forfeits the right to be upset that you leave. Nobody should try to guilt you into staying anymore, as all the terms have been agreed upon in advance.

Pilots can/should feel the pressure to be a nice guy and commit to work for a company for a while if there is no bond.
If there is a bond, they should honor the bond, but not feel bad at all if they leave soon.

I would be really curious to know what the average employment duration is for a pilot in companies without bonds vs companies with bonds. I for one have worked longer at companies without bonds, than at the companies that made me sign a bond.
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Re: Leaving with a bond?

Post by rookiepilot »

digits_ wrote: Tue Feb 11, 2020 11:35 am
rookiepilot wrote: Tue Feb 11, 2020 11:21 am
digits_ wrote: Tue Feb 11, 2020 7:48 am If a company implements a bond, it becomes a financial transaction, and things like "honor","commitment" and "be a nice guy" become meaningless.
Tell me you're kidding -- right? Duh. Yeah it's a financial transaction, with a real dollars investment by the employer, that they expect to be paid back. In a written agreement. They aren't your best buds.
Exactly. Did you read my previous message?

If you sign a bond, of course you have to follow the terms of the (written) agreement, but in return the company forfeits the right to be upset that you leave. Nobody should try to guilt you into staying anymore, as all the terms have been agreed upon in advance.

Pilots can/should feel the pressure to be a nice guy and commit to work for a company for a while if there is no bond.
If there is a bond, they should honor the bond, but not feel bad at all if they leave soon.

I would be really curious to know what the average employment duration is for a pilot in companies without bonds vs companies with bonds. I for one have worked longer at companies without bonds, than at the companies that made me sign a bond.
I think leaving after fulfilling the written agreement is fine. I would if it was me -- or negotiate; to offer my employer the chance to match a superior offer.

When I did have an employer back in the day, after I established myself, I negotiated new contracts quite assertively. But had to sign a tough non-compete agreement, in return.
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Re: Leaving with a bond?

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rookiepilot wrote: Tue Feb 11, 2020 11:50 am I think leaving after fulfilling the written agreement is fine. I would if it was me -- or negotiate; to offer my employer the chance to match a superior offer.
If the company has a bond in place, the agreement is; work for X time period or pay X amount of money if you leave early. If the fellow knows the company has a training bond in place, and is willing to work there and *MAY* leave prior to the end of the period under which he is bonded; but is willing to pay off the remainder of the bond - what's the issue?
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Re: Leaving with a bond?

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Why are there "training bonds" in the first place. Like most things there is always at least 2 sides to the argument. The majority here argue from the career climbing group who feel it's their right to chase the metal with hopes of the dream job. The environment for the last several years has fed this and the small operator who operates 703 needs to find some way of recovering training costs. The cash flow and profit margin on a "HO" in a cut throat biz can be significantly reduced to a negative number with popup training happening several more times a year than normally required.

Having said all that I think the term "bond" should disappear and a proper contract replace it. The contract should cover all aspects of employment from training to company commitment with an emphasis on what the company expects for your commitment and how you are expected to conduct the missions. Here is where loads and wx can be defined, what a concept The trouble with most of "Bonds" of today are totally one sided and this is wrong.

I have personally witnessed on several occasions where people have received training, a left seat PPC and resign 2 to 4 weeks later. How do small companies deal with this unless they have some mechanism to recover this kind of expense.
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Re: Leaving with a bond?

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igorcanuck wrote: Mon Feb 10, 2020 7:44 am Does anyone know if it’s legal or at least “okayish” to offer to pay the company back in a few monthly payments? If I have to leave and can’t afford the entire amount but offer to pay it in monthly payments, is the company still allowed to sue me?
Happens all the time. Let's say the company sues you and you agree to the liability but propose paying back in installments. There us not a chance they will go to trial only for the judge to agree and order you to pay...in installments.

First off, it's a sellers market. You don't need to pay a bond to get a decent job.

Second, you can negotiate your bond exit. I leave now you chase me for the money. I give you 50 cents on the dollar now and we'll call it even and you give me a good reference. This happens all the time- even after there is a court judgement. (As an aside, this happened in the million dollar McDonald's coffee case).
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Re: Leaving with a bond?

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Don't mean to derail, but when did this 'bond' thing come about? I thought this sort of thing went out with the serfs.

And all these people flying off the handle about PTF: what do you think this is? I fully understand the business point of view: I ran a successful business for around 20 years, and staffing was a constant issue. Pay, although certainly very important, is not the only consideration for workers' happiness, but money is the ONLY thing that matters in running a business properly. It is why you are there in the first place, but it does involve a lot of smiling when you do not want to, and is rewarding in other ways too. I am sure the employers who send people off to fly for Air Canada are quite proud of their training. I would be.
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Re: Leaving with a bond?

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What really impacted the 703/704 and even small 705 operators was when the level 2 guys dropped their basic qualification for holding an ATP and grabbing guys with 700 hours. Prior to that you could hire a person into the right seat and upgrade on look at close to 2 years of service out of that candidate. No bonds need just treat people well and keep them happy even with a slightly lower salary. As stated money isn't everything and a reasonable schedule with time off and not trying to push people out with heavy aircraft and poor wx. Most get it and are happy to build time but now that has been undermined and we see the present shit show. It will be interesting to see all the back tracking when the industry starts heading for the trough in this cycle.
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Re: Leaving with a bond?

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valleyboy wrote: Wed Feb 12, 2020 8:10 am What really impacted the 703/704 and even small 705 operators was when the level 2 guys dropped their basic qualification for holding an ATP and grabbing guys with 700 hours. Prior to that you could hire a person into the right seat and upgrade on look at close to 2 years of service out of that candidate. No bonds need just treat people well and keep them happy even with a slightly lower salary. As stated money isn't everything and a reasonable schedule with time off and not trying to push people out with heavy aircraft and poor wx. Most get it and are happy to build time but now that has been undermined and we see the present shit show. It will be interesting to see all the back tracking when the industry starts heading for the trough in this cycle.
That is only part of the reason. The other side, is that the samller 703/704 operators keep clinging to the 700 hours mark. If they would drop their hour requirements to 250, they would still get about 2 years of service out of their employees. Instead they bond 700 hour pilots who leave after 6 months anyway.

Occasionally you see them hiring 250 hour pilots, but it is still fairly uncommon.
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Re: Leaving with a bond?

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valleyboy wrote: Tue Feb 11, 2020 7:34 pm Why are there "training bonds" in the first place. Like most things there is always at least 2 sides to the argument.
In 2000 I was the CP at a 703 startup, took two youngsters that had done nothing but instruct and gave them a PPC on an aircraft on the understanding they would be around to fly it for some time. Got exactly one revenue trip from one of them, none from the other. The buggered off with a 'thanks for the ppc, it helped me get the next job'. Not surprisingly, they went out east and did the same trick again, were back in the west two months later with yet another PPC.

The company out east introduced bonds right after they left with ink almost dry on a KingAir ppc.

Folks like that pissed in the pickles for everybody behind them. Over the years talking to other folks hiring for other companies, lots of others had a similar story.
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Re: Leaving with a bond?

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goldeneagle wrote: Wed Feb 12, 2020 2:17 pm
valleyboy wrote: Tue Feb 11, 2020 7:34 pm Why are there "training bonds" in the first place. Like most things there is always at least 2 sides to the argument.
In 2000 I was the CP at a 703 startup, took two youngsters that had done nothing but instruct and gave them a PPC on an aircraft on the understanding they would be around to fly it for some time. Got exactly one revenue trip from one of them, none from the other. The buggered off with a 'thanks for the ppc, it helped me get the next job'. Not surprisingly, they went out east and did the same trick again, were back in the west two months later with yet another PPC.

The company out east introduced bonds right after they left with ink almost dry on a KingAir ppc.

Folks like that pissed in the pickles for everybody behind them. Over the years talking to other folks hiring for other companies, lots of others had a similar story.
Couldn't this have been prevented by the company out east with a thorough reference check?
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Re: Leaving with a bond?

Post by goldeneagle »

digits_ wrote: Wed Feb 12, 2020 2:51 pm Couldn't this have been prevented by the company out east with a thorough reference check?
Guess that depends on who they gave as references.
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Re: Leaving with a bond?

Post by digits_ »

goldeneagle wrote: Wed Feb 12, 2020 2:55 pm
digits_ wrote: Wed Feb 12, 2020 2:51 pm Couldn't this have been prevented by the company out east with a thorough reference check?
Guess that depends on who they gave as references.
I'm just bringing this up because I am often surprised by the lack of reference checks companies do.
In your example, with Pilot Asshole. If he applied at your company, the only thing you could do was call the flight school where he instructed. That probably wouldn't have helped. Now he leaves your company after getting his PPC. That means he must have mentioned it on his resume. You'd think that the eastern company would have asked where he got his PPC. The date would also have been on his license, right? That would indicate it was a very recent PPC. That means the eastern company either didn't care that the PPC was recent, and that he was a job hopper, or they didn't do their homework.

If eastern company hired Pilot Asshole after he left your company within a couple of months just because of the PPC, I would put part of the blame on the eastern company as well. If you know he is an extreme job hopper, what do you expect? After all, the eastern company elected to steal a pilot from another company instead of training a new guy themselves...

There are more solutions available than just implementing bonds.
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