Spanish pilots drop strike threat and accept 14% salary cut

Iberia planes

The Spanish airline Iberia has reached an agreement with the carrier’s pilots union, Sepla, which puts an end to a conflict raised by the airline’s decision to set up a low-cost unit that led to a series of strikes in the spring of 2012 and the cancellation of hundreds of flights.

The agreement in principle between Sepla, the Spanish pilots’ union, and IAG, will freeze salaries, which were cut last year by 14%, until 2015 although a potential further 4% cut has been dropped under agreed “productivity improvements”, IAG said. These include longer flying hours and a lower minimum wage.

The accord will pave the way to develop the budget carrier Iberia Express, which is seen key for a group that has posted losses over the past five years

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