Iberia and labour unions search for common ground

Iberia, the Spanish subsidiary of International Airlines Group (IAG), is facing day two of a five-day strike organised by labour unions as both sides try to reach common ground on the most conflictive issues in negotiations: salaries, job cuts, and productivity.

Iberia, the Spanish subsidiary of International Airlines Group (IAG), is facing day two of a five-day strike organised by labour unions as both sides try to reach common ground on the most conflictive issues in negotiations: salaries, job cuts, and productivity.

According to Spanish daily El Economista, the main dispute is over the labour unions' request that no additional lay-offs be realised for a significant period of time. IAG is against the request due to the uncertainty that the airline sector faces over the short- and medium- term.

Unions consider the request to be a fundamental step in the talks because more lay-offs would violate the terms of a regulated layoff plan.

In a separate matter, IAG may be considering a higher offer for low-cost airline Vueling. According to El Confidencial, the price would be between €7.50 and €8.00 per share, up from an initial offer of €7.00.

Analysts at Ahorro Corporacion Financiera say that the new offer would ease tension among shareholders because it would be considered an equitable price that approaches the airline's book value of €8.08.

Regardless, they pointed out that IAG is governed exclusively by the rules applicable to voluntary offers, in which case the offerer is not required to offer an equitable price.

SB

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022