Iberia has reached an agreement in principle on pay and conditions with its cabin crew unions, in another step toward controlling costs.
The Spanish flag carrier and its four unions—SITCPLA, CTA Vuelo, UGT and CCOO—have agreed on several conditions in what the airline refers to as a “pre-agreement.”
These include substantially improving productivity; maintaining a 14% pay cut established in last year’s mediation agreement and freezing pay through 2015; setting starting salaries at market levels and changing methods of calculating seniority/promotions; and changing productivity measures to include an increase in the number of duty days. Additionally, new working practices are being introduced in short- and medium-haul services that are more closely aligned with market practices. When these productivity measures are applied, an additional 4% pay cut, which was introduced in April 2013, will be returned.
The new contract, if confirmed, will remain in force until Dec. 31, 2017.
The agreement comes as Iberia tries to recover from its poor financial situation. International Airlines Group CEO Willie Walsh has said on several occasions that costs at the loss-making Spanish airline have to be brought under control.
Earlier in February, Iberia signed a similar conditions deal with pilots.
Iberia chairman and CEO Luis Gallego said 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.”