Iberia strikes: the challenge to one of Europe’s least productive workforces

Strikes carried out by Iberia employees in protest against the job cuts proposed under the airline's Transformation Plan again highlight the divide between labour and management. With cumulative losses of EUR862million from the start of 2009 to Sep-2012, management had to act to restore profitability in the face of intense competitive pressure. We have extended our recent analysis of European airline labour productivity and found that Iberia has one of the least productive workforces.

Strike action could be costing Iberia as much as EUR1 million per day in operating profit impact, underlining the need to find a resolution. Coming on top of previous disputes about the establishment of Iberia Express, the gap between executives and employees may now be too great. If it cannot be closed, Iberia's parent IAG has Vueling waiting in the wings to take on a bigger role.

Meanwhile, Ryanair, easyJet and Air Europa will be enjoying every minute of watching the strikes deliver more passengers to them.