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Iberia Reaches Pre-Agreement with Cabin Crew Unions on New Contract

a key step in building the new Iberia

Pre-Agreement with Cabin Crew Unions means a significant improvement in productivity, no change in 14% wage cuts established in the Mediation Agreement, a pay freeze through 2015, and future rises subject to the airline’s profitability. The additional 4% wage cut will be lifted when newly agreed productivity measures take effect and to be in force until 31 December 2017.

Rédigé par La Rédaction le Mardi 25 Février 2014

Iberia management and cabin crew unions (SITCPLA, CTA Vuelo, UGT, and CCOO) have reached an agreement in principle on the terms of a new collective bargaining agreement.

Key aspects of the pre-agreement are :

• A substantial improvement in productivity.
• Maintaining the 14% pay cut established in last year’s Mediation Agreement, and a freeze on pay through 2015, after which rises will be subject to the airline’s profitability.

• Starting salaries to be set at market levels. Technical changes in calculating seniority and promotion levels depending on fleet and duties.

• Productivity measures to include an increase in the number of duty days, plus more specific measures for the summer season, such as more flying hours, in order to deal with the growth of demand in this period.

In addition, in short- and medium-haul services new working practices have been established, in line with market practices. When these measures are applied, the additional 4% pay cut introduced in April, 2013, will be returned.

• The new contract will remain in force until 31 December 2017.

For Iberia’s Chairman and CEO, Luis Gallego, the agreement in principle with the cabin crew unions ‘is a key step in building the new Iberia since it lightens its cost structure and lays the foundation for profitable growth.

Currently all employees are accepting changes to help give the airline a better future. This show of responsibility indicates great maturity on the part of our staff as well as their commitment to the company’s future.’

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