IAG looks at compromise in labour dispute

City A.M. Reporter
IAG airline holding company has accepted a government-appointed mediator’s compromise proposal to end a labour conflict over mass layoffs at Spanish flagship airline Iberia, the company said last night.

“The board has decided to accept the proposal,” the company said in a statement. International Airlines Group, or IAG, is the holding company for Iberia and British Airways.

The mediator proposed Iberia lay off 3,141 workers, instead of the 3,807 the airline had planned to let go, with severance pay of 35 days per year worked, rather than 20.

The unions have not said yet whether they accept the proposal and it was not immediately possible to reach union representatives yesterday. Union workers had previously rejected a company offer to soften its initial plan for firing staff.

The mediator is scheduled to meet with worker representatives today.