Iberia Airline Workers Protest Job Cuts and Disrupt Madrid Airport

Iberia Airline Workers Protest Job Cuts and Disrupt Madrid Airport

http://www.nytimes.com/2013/02/19/business/global/strikers-disrupt-iberia-terminal.html
Hundreds of employees of Iberia held a protest Monday as the airline planned to cut more than 3,800 jobs; five were arrested.
By NICOLA CLARK
Published: February 18, 2013
Striking ground workers and flight attendants for Iberia, the money-losing Spanish airline, clashed with riot police officers at Madrid-Barajas Airport on Monday, the first day of work stoppages to protest a plan to eliminate more than 3,800 jobs.
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Despite a police blockade, several hundred protesters managed to enter Terminal 4 — Iberia’s main operating hub at the airport — creating additional chaos and frustration there for many passengers who had already been forced to wait for delayed flights. The police arrested five Iberia employees, but the protest did not result in any significant damage within or outside the terminal.

The demonstration, which airline officials said lasted little more than an hour, was the latest episode in a dispute between unions and the London-based parent of Iberia, the International Airlines Group, which warned in November that the airline was in a “fight for survival” and had no choice than to make drastic cuts.

The International Airlines Group, which also owns British Airways, had originally envisioned staff reductions of 4,500 or more at Iberia, which says it is losing nearly 2 million euros ($2.5 million) a day.

The company said last week that it would press ahead with eliminating 3,807 jobs over the next 30 days after its offer to limit the reductions to around 3,100 — in exchange for salary cuts of 11 to 23 percent — was rejected last month by unions.

Spain’s recession and fierce competition from budget airlines have left Iberia struggling to restore profitability. The airline also is cutting capacity by 15 percent by eliminating a number of unprofitable routes.

International Airlines, which was formed by the merger of Iberia with British Airways in 2011, will report its 2012 results on Feb. 28. It has forecast an operating loss of 120 million euros for the year. Iberia reported an operating loss of 262 million euros for the first nine months of last year.

Santiago de Juan, an Iberia spokesman, said the airline was canceling 415 flights through Friday, around 39 percent of the total scheduled.

Unions representing Iberia ground staff and flight attendants have announced plans to strike this week, as well as March 4 to 8 and March 18 to 22. The airline’s pilots were expected to join the strike beginning March 4.

Mr. Juan said Iberia expected the level of flight disruption to be roughly the same for each five-day strike period.

Raphael Minder contributed reporting.

http://www.nytimes.com/2013/02/19/business/global/strikers-disrupt-iberi...

Pablo Blazquez Dominguez/Getty Images
Hundreds of employees of Iberia held a protest Monday as the airline planned to cut more than 3,800 jobs; five were arrested.
By NICOLA CLARK
Published: February 18, 2013
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Striking ground workers and flight attendants for Iberia, the money-losing Spanish airline, clashed with riot police officers at Madrid-Barajas Airport on Monday, the first day of work stoppages to protest a plan to eliminate more than 3,800 jobs.
Add to Portfolio

• Iberia Lineas Aereas de Espana SA
Go to your Portfolio »
Despite a police blockade, several hundred protesters managed to enter Terminal 4 — Iberia’s main operating hub at the airport — creating additional chaos and frustration there for many passengers who had already been forced to wait for delayed flights. The police arrested five Iberia employees, but the protest did not result in any significant damage within or outside the terminal.

The demonstration, which airline officials said lasted little more than an hour, was the latest episode in a dispute between unions and the London-based parent of Iberia, the International Airlines Group, which warned in November that the airline was in a “fight for survival” and had no choice than to make drastic cuts.

The International Airlines Group, which also owns British Airways, had originally envisioned staff reductions of 4,500 or more at Iberia, which says it is losing nearly 2 million euros ($2.5 million) a day.

The company said last week that it would press ahead with eliminating 3,807 jobs over the next 30 days after its offer to limit the reductions to around 3,100 — in exchange for salary cuts of 11 to 23 percent — was rejected last month by unions.

Spain’s recession and fierce competition from budget airlines have left Iberia struggling to restore profitability. The airline also is cutting capacity by 15 percent by eliminating a number of unprofitable routes.

International Airlines, which was formed by the merger of Iberia with British Airways in 2011, will report its 2012 results on Feb. 28. It has forecast an operating loss of 120 million euros for the year. Iberia reported an operating loss of 262 million euros for the first nine months of last year.

Santiago de Juan, an Iberia spokesman, said the airline was canceling 415 flights through Friday, around 39 percent of the total scheduled.

Unions representing Iberia ground staff and flight attendants have announced plans to strike this week, as well as March 4 to 8 and March 18 to 22. The airline’s pilots were expected to join the strike beginning March 4.

Mr. Juan said Iberia expected the level of flight disruption to be roughly the same for each five-day strike period.

Raphael Minder contributed reporting.