Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On the 12th of February Iberia announced the launch of a new labour force adjustment plan (ERE) affecting 3,807 employees (19% of its entire workforce).
This is a new restructuring proposal, after the first attempts failed to reach an agreement between the management and the workers’ representatives. The original plan included 4,500 job cuts, but larger compensation. IAG management also wants Iberia to reduce its route capacity by 15 percent this year and for the airline’s employees to accept wage cuts.
According to the new proposal, the company will offer the minimum compensation by dismissal stipulated in the Spanish legislation: 20 days per year worked with a limit of 12 months. The dismissals will affect 2735 land workers, 759 crew members and 313 pilots. A consultation process of one month with the unions has been initiated. However, the unions have already called for 15 days of strike on February 18-22, March 4-8 and March 18-22.
UPDATE 10.03.2013: On the 10th of March, IAG has accepted to decrease the numbers of workers affected in the collective redundancy to 3,140. Following the proposal of a mediator appointed by the Ministry of Public Works, the company has decided to reduce the number of dismissals. Bearing this change in mind, the unions have stopped the call for strikes foreseen for the month of March.
Iberia is the Spanish flag carrier airline, currently employing nearly 20,000 people. Since 2010 Iberia and British Airways have merged into the holding company International Airlines Group (IAG), the third largest worldwide commercial airline by revenue. Iberia recorded losses of over 850 million euros from January 2008 to September 2012, and the losses amounted to 262 million in the first nine months of 2012 alone.
Eurofound (2012), Iberia (IAG), Internal restructuring in Spain, factsheet number 74704, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/74704.