November 2022, Virtual
21 November 2022, Hilton London Metropole
British Airways’ parent company IAG has failed to reach a deal with the unions representing workers at Iberia.
IAG had set the deadline of January 31 for agreements with Iberia’s unions as part of a transformation plan for the Spanish carrier. The plan proposed the loss of 4,500 jobs as well as cuts to Iberia's capacity and fleet.
But this plan was linked to securing deals with the unions by the end of last month with IAG warning that the cuts would be deeper without these agreements.
Following the failure of talks with unions, the company said that it would now “press ahead with the previously announced capacity reduction of 15 per cent for 2013”.
Willie Walsh, IAG’s chief executive, said: “We're disappointed that no agreement has been reached. Iberia is ready and willing to negotiate with the trade unions. We are determined and united to implement the necessary changes to secure the future survival and viability of Iberia.”
IAG said it would now go ahead with “alternative plans” to improve Iberia’s financial performance with the goal of getting the carrier “to an acceptable level of profitability by 2015”.
Iberia made an operating loss of €262 million in the first nine months of 2012 as IAG’s operating profit slumped from €451 million in 2011 to €17 million this year. In contrast, BA made an operating profit of €286 million over the same period.