Iberia reaches agreement with unions representing 93% of staff

Iberia and unions representing ground staff and cabin crews, comprising 93% of the total staff, have agreed to negotiate the terms of the company’s Transformation Plan, aimed at restoring profitability and ensuring the airline’s future.

In today’s meeting Iberia management reiterated its wish to rely chiefly on early retirements to achieve about two-thirds of the staff reduction called for in the plan. It is also prepared to negotiate such formulas as payoff for voluntary resignations, and transfers of employees to different positions and/or different locations.

The two sides agreed to negotiate terms for a five-year period, through 2017. The company stressed that its restructuring plan indicates its commitment to the future of the company, which plans to invest millions in new aircraft, new long-haul seating classes, improvements to its Madrid hub, and in its maintenance, handling, and cargo divisions, amongst others.

The company has pledged to keep the maintenance and handling division within the Group, but on condition that they remain profitable enough to grow, or to win new handling contracts.

Iberia expressed its gratitude to the SIMA arbitration service under whose auspices the meeting was held leading to an agreement “that benefits the company, its employees, and its customers”.

This week the company will call on the SEPLA pilots union to join in the agreement and to negotiate along with the other unions, since there is no other way to extricate the company from its current situation, and to achieve profitability and sustainability. The company also wants to hear details of SEPLA’s proposal whereby the pilots would accept pay cuts of 51%, as mooted by the union’s attorney in a radio interview.