Iberia pilots have their own plan for the struggling airline

Spanish pilot trade union Sepla presented on Monday its own proposal to turn around Iberia, the Spanish airline operated under International Airlines Group (IAG), after considering that management's new proposal to restructure the company is worse than the initial plan.

Sepla's proposal is separate from the alternative presented on Wednesday by other labour unions representing 93% of the workforce.

According to Sepla, Iberia's plan consists of a new 15% production cut for this year, only to be recovered if there are profits, and salary cuts of up to 70%.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Sepla insists that there is unity among the unions and that they all support a viability plan that would guarantee Iberia's future.

The other unions want Iberia to extend its current regulated layoff plan to 2017, to integrate Express into the parent company, and to maintain core routes to Latin America. In exchange, they are willing to agree on salary cuts, to implement improvements in productivity, and other measures.

LS