13-May-2013 2:30 PM

IAG: Expected gross labour cost savings at Iberia of EUR360m by 2015

International Airlines Group (IAG) announced (10-May-2013) it expects to achieve a gross labour cost saving by 2015 of EUR360 million from a mediation agreement signed on 13-Mar-2013. The agreement allowed for a workforce reduction of 3300 people (or 17% of the baseline 2012 workforce) and an average salary cut of 11% initially (7% ground and 14% flight crews), followed by a further 4% if Apr-2013 productivity talks failed. 80% of redundancies are to occur during 2013 with 1400 staff having already exited as of the end of May-2013. IAG will provide a full investor update in Jun-2013. [more – original PR]