UGT, CCOO and SEPLA reject the Iberia Plan (Joint Press Release)

November 14, 2012

Madrid, 9 November 2012

In Friday’s meeting of the Social and Economic Forum, IB Management presented to the 3 Member Union’s, IAG’s plan designed to tackle IB’s losses.

The first thing which has surprised us is that the the Management side have admitted no responsibility for any of the losses seen. All blame has been attached by them to the economic situation, the markets IB fly-in, the oil price, the highly competitive nature of the market and above all else labour costs.  Management decisions, poor ones and known for some time concerning fleet renewal and where fuel was hedged at were not acknowledged.

The Iberia plan can be broadly summarised in this way:

• Reduction in IB’s overall capacity and of course in revenue.
• The segregation/divison of the Handling and Maintenance businesses leading to their future sale.
• Using Spanish labour laws to cut 4500 jobs.
• For workers who remain a salary cut of between 25-35% and removal of automatic grade and length of service increments.
• When renewing Ground Handling tenders for the licence process in 2013, IB will only submit a tender in an airport where its margin is between 10-20%.

On top of this Company representatives have informed us if a negotiated settlement is not reached by 31 January 2013, it will take other measures.

All this news has been given to us in a context of painting such a situation and grim economic news, that IAG has made a multi-million offer to buy 100% of Vueling and bring it into IAG’s corporate structure, on top of the funds given to start IB Express and are another step towards the objective of the full dismantling of Iberia.

CCOO, UGT and SEPLA expressed the unanimous and absolute rejection to IB Management of the plan presented to them, re-iterating once again our wish to see and negotiate a genuine turn-around plan for Iberia and the future viability of the airline.  To this extent we have expressed to the Company we will take what measures at our disposal necessary to see this plan is discussed.

CCOO, UGT and SEPLA are willing and open to discuss in good faith any plan that guarantees the future viability of Iberia and bring it back to profitability.

We do not accept the capacity reduction or the division of the business either total or partial.

We also state any plan must include the futures of Vueling, IB Express and Air Nostrum.

We restate the position expressed to the Company in the last Social and Econmoic Forum meeting held on 20 September 2012:

Maintain a proportionate level of growth in line with our partner airline in the merger and in the Joint Business Agreement (JBA) as seen in earlier agreements discussed.

Any reduction in the workforce must use the current redundancy terms in operation and these terms to be extended until a plan for IB’s future viability is agreed upon.

Any changes and increase in productivity levels required to protect jobs must be shared fairly and equitably between.  These measures must include all groups in the airline and include shareholders as well.

We will seek guarantees no part of the business will be segregated or divided either totally or partially.

The measures agreed in January 2012 to maintain employment including the ‘loaning’ of services to Vueling and Air Nostrum are kept in place until any final plan is agreed upon.

No worker in Iberia, either Ground Staff, Cabin Crew or a Pilot will lose their job whilst Iberia and its associate airlines maintain or increase their own capacity and operations.