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Iberia hands unions new plan to dismiss 3,807 employees, along with wage cuts, plus new productivity clauses

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Iberia hands unions new plan to dismiss 3,807 employees, along with wage cuts, plus new productivity clauses Iberia
Iberia management today handed union representatives its plans to dismiss 3,807 employees on the "economic, productive, and organisational" grounds specified in article 51 of Spain's Labour Code.
The plans include other measures intended to minimise staff downsizing via pay freezes and reductions, along with new productivity and other flexibility measures.
The plan was announced following the failure of negotiation with the unions over the past three months, during which Iberia proposed a number of alternatives to restore profitability and ensure the company's future viability by means of early retirements and wage cuts, and without recourse to dismissals, but these were rejected by the unions.
The new plan will be negotiated with the unions for a 30-day period.
Iberia posted losses of more than 850 million euros from January 2008 to September of last year, and the losses amounted to 262 million in the first nine months of 2012 alone. This situation is obliging the company to take drastic measures to reduce costs and improve unit revenues in order to remain in business.
Iberia is keen to reach an agreement with the unions and will attend the meetings with the union representatives with this intention, in spite of the the call for intermittent strikes lasting a total of 15 days in February and March, that don’t contribute to constructive negotiations.
Management appealed to the unions to settle disputes at the bargaining table rather than involving customers through strikes that can only aggravate the airline's loss-making situation. The company is implementing a contingency plan to ease the impact of the strikes on affected customers by helping them find alternative flights, and by facilitating changes in travel dates, and ticket refunds.
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