Iberia gets tough amid strikes
Spanish airline Iberia says it will cut pilots' wages by 20 per cent and increase their working hours by 25 per cent in a bid to save some €62 million ($81 million) and improve competitiveness.
The measures announced yesterday come as pilots are staging strikes every Monday and Friday between April 9 and July 20 to protest feared job losses among the company’s 1,600 pilots following the creation of Iberia’s new low-cost affiliate, Iberia Express.
Iberia says the strikes, which are causing a cancellation of a third of its flights, cost the company some €3 million ($4 million) each time.
It said the latest measures are aimed at helping the company deal with reduced demand, higher fuel prices and tough global competition.
The challenging times for Spain’s biggest carrier reflect wider problems as the nation struggles with an economic crisis.