Iberia mediation proposals

The mediator in the Iberia dispute, Gregorio Tudela, a professor of private, social and economic law at Madrid’s Autónoma University (UAM), has proposed that 3,141 workers be laid off, about 16% of the workforce. The original figure quoted by the parent company IAG in November 2012 was 4,500 and the ERE presented by Iberia envisages the dismissal of some 3,800 employees.

Tudela also proposed an average pay cut for ground staff of 7%, and 14% for cabin crew.

International Airline Group (IAG), the holding company argues that the restructuring is necessary to restore the Spanish carrier to profitability. Iberia’s losses in 2012 were €351 million, compared to €98 million in 2011.

Unions, on the other hand, believe the layoffs are all part of a big conspiracy by BA to dismantle Iberia and get its hands on its assets cheaply.

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