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Iberia Reaches Agreement in Principle with Ground Staff Unions
  • This agreement follows similar deals in principle reached with pilots and cabin crew.
  • Fundamental productivity and flexibility improvements in maintenance and airport handling units.
  • 7% pay cut decreed in the mediation agreement last year to remain in place, with wage freeze to continue through 2015. After that date, increases will be subject to the airline’s profitability.
  • Additional 4% cut to be lifted once productivity measures are implemented.
  • New labour agreements with all three employee groups will remain in force through 2017.

Madrid, 14 March 2014

Iberia management and the principal trade unions representing ground staff, CCOO and UGT, have reached an agreement in principle on the key points of a new collective bargaining agreement, following similar agreements signed with cabin crew and pilots’ unions, all of them aimed at achieving a competitive cost structure for the Spanish airline.

The key points of the agreement in principle are as follows:

  • Fundamental productivity and flexibility improvements in maintenance and airport handling units.
  • As with the other employee groups, the 7% pay cut decreed in the mediation agreement last Spring will remain in place for ground employees, as well as the wage freeze through 2015. After that date, increases will be subject to the airline’s profitability.
  • Rules on seniority and promotion are to be brought in line with standard industry practices.
  • In the maintenance unit, employees will multitask which will ensure greater internal flexibility.
  • As soon as the productivity measures take effect, the additional 4% pay cut decreed last April in the mediation agreement will be lifted.
  • The new union contract will remain valid through 2017.

Commenting, Luis Gallego, Iberia Chairman and CEO, said “the agreement reached today, added to those reached with cabin attendants and pilots, is a landmark in Iberia’s history. It provides a strong foundation to put Iberia on the path towards sustainable profitable growth. We have seen how the sacrifices, good will and common sense of all parties were essential to leaving behind the years of conflict, and beginning to rebuild Iberia’s future.”

This agreement in principle is subject to the approval of both unions.