IAG accepts mediator's proposal for Iberia

International Airlines Group has issued a statement saying that it has opted to accept a proposal put forth by a mediator regarding its Spanish airline division Iberia.

International Airlines Group has issued a statement saying that it has opted to accept a proposal put forth by a mediator regarding its Spanish airline division Iberia.

The statement read: "The board of International Airlines Group has met today in an extraordinary session to analyse and assess the proposal issued by a mediator regarding Iberia. As a result, the board has decided to accept the proposal."

According to a news article published on Reuters news website, the mediator proposed that the Spanish airline cut 3,141 jobs rather than the 3,807 that the airline had planned to let go. The proposal also reportedly entitled those subject to the lay-offs with severance pay of 35 days per year worked, rather than 20.

It remains unclear whether the Spanish airline unions will accept the proposal as they have previously rejected a series of job cuts packages put forward in the past six months.

However, an indication of their response is expected over the coming hours and days as Reuters reported that the mediator is scheduled to meet with worker representatives on Monday.

The developments follow a series of strike actions which disrupted more than 1,000 flights over the past fortnight.

In the six months to June 30th 2012, Iberia made an operating loss of €263m, working out at approximately €1.0m in operating losses per day.

In IAG's half-yearly results for the six months to June 30th, Willie Walsh, IAG Chief Executive Officer, commented: "There remains a stark difference in the performance of our subsidiaries. British Airways made an operating profit despite rising fuel process while Iberia's losses deepened."

"Iberia's problems are deep and structural and the economic environment reinforces the need for permanent structural change," he added at the time.

Last year, Iberia presented the union with a proposal for cutting up to 4,500 jobs and reducing pay for some staff by between 25% and 30%.

MF

Recommended

The top funds to invest in
Funds

The top funds to invest in

Investors continue to favour passive funds in April though figures reveal an actively managed money market fund also caught their eye. We look at wher…
3 May 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
20 Apr 2023
Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?
Savings

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?

Two fortunate NS&I Premium Bond winners are now millionaires. Find out here if you’re one of them.
1 Jun 2023
The best one-year fixed savings accounts - June 2023
Savings

The best one-year fixed savings accounts - June 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
2 Jun 2023
The top healthcare funds to buy
Investments

The top healthcare funds to buy

Increasingly rapid progress in drugs and healthcare technology makes these trusts top tips, says Max King.
1 Jun 2023