Iberia offers new proposal to unions to make the airline viable

Iberia met today with union representatives of it ground staff, cabin crews and pilots, submitting a new proposal fleshing out the agreement reached on 17 December.

The proposal represents a substantial improvement on the management’s initial proposal, made on the 9th of November, in terms of the numbers of employees affected, the magnitude of pay cuts and capacity reductions, reflecting the company’s efforts to reach an agreement.

Under the new proposal, staff cuts would affect only 3,147 people, some 30% fewer than the initial figure of 4,500, and priority use would be made of the current layoff programme until 2015, as long as an agreement with the unions is reached.

The new offer calls for an 11% cut in pay for ground staff, and a 23% reduction for cabin crews, as vs. initial demands for cuts of between 25% and 35% for the entire workforce.

The new proposal also calls for a production capacity reduction of 10% this year, instead of the 15% proposed initially. Capacity would grow in the following years if business results justified this.

Iberia also ratified its December commitment not to spin off its handling or maintenance divisions, while underlining the need to submit competitive bids for third-party handling contracts.

Iberia appealed to unions’ sense of responsibility and expressed its hope that the changes to its proposals will lead to an agreement, while insisting that the cuts are needed to restore viability, profits, and future growth prospects to the company, with the smallest possible sacrifices.