IAG reaches pay deal with Iberia ground staff

14th Mar 2014 14:49

Airline operator IAG has reached a productivity deal with the ground staff at its Iberia subsidiary, agreeing to lower wages in the near term in an effort to reduce costs at the struggling Spanish carrier.The agreement, similar to the ones recently made with Iberia pilots and cabin crew, ends months of disputes with labour unions over layoffs and cutbacks.The new deal with ground staff confirms the proposed 7% wage cut and subsequent pay freeze until 2015. Any increases in pay thereafter will be linked to the airline's profits.The company also announced that an additional 4% pay reduction will be eliminated once productivity measures are implemented.Iberia's Chief Executive Luis Gallego said that the agreement represents "a milestone in the history of the company" and puts it on the path to "profitable and sustainable growth".BC