Iberia pushes ahead with 3,807 redundancies
Iberia will cut 3,807 jobs after it failed to reach an agreement with its unions on a scaled back restructuring plan.
In November, Iberia detailed plans to cut 4,500 jobs—equivalent to nearly a quarter of the workforce—in a bid to stem
heavy losses at the carrier. At the time it set a Jan. 31 deadline to reach an agreement with its unions, threatening deeper cuts and a more radical restructuring if
the talks failed.
On Jan. 31 Iberia tabled a plan to cut 3,147 jobs through early retirements, with no redundancies. It also lightened ground staff wage cuts from 18% to 11% and flight crew salary cuts from 25-30% to 23%. However the
unions rejected this offer, claiming it fell short of an agreement reached through arbitration on Dec. 17. The workers, represented by the CCOO, UGT, USO, ASETMA, CTA-Flight and SITCPLA as well as the SEPLA pilots union, immediately announced strike plans.
In the latest twist, Iberia said it has now started “the formal process of collective redundancy” covering 3,807 positions. It handed the documents to unions during a meeting at 1230CET on Wednesday, kicking off a 30-day consultancy period. The Spanish carrier claims that pay cuts, along with new productivity and mobility clauses, will keep the number of redundancies to a minimum.
An Iberia spokeswoman explained that under Spanish law the formal proposal must be limited to redundancies, however she indicated that this is still subject to negotiation. “Alongside the redundancies, Iberia is offering a social plan. If wage cuts and productivity gains can be agreed with the unions the number of redundancies can be reduced,” she told
ATW. “Otherwise the redundancies will go ahead.”
Iberia will be required to pay staff 20 days per year of service, up to a limit of 12 months, if it goes ahead with the plan.
During the first nine months of 2012 Iberia posted a €262 million loss, growing its losses since 2008 to over €850 million. The company warns that it needs to take “drastic” cost-cutting measures and increase its yield to remain viable.
“Iberia is keen to reach an agreement with the unions and will attend the meetings with the union representatives with this intention, in spite of the call for intermittent strikes lasting a total of 15 days in February and March, that don’t contribute to constructive negotiations,” said Iberia, noting it has made contingency plans for the strike days.
http://atwonline.com/airline-finance-data/news/iberia-pushes-ahead-3807-redundancies-0212