Airline to slash pilot payroll costs by 20% including cut in pay scales
In a strike back against its pilots’ continuing industrial action, Iberia says it will slash pilot payroll costs by 20%. This includes a 12% cut in pilot pay scales. Other measures, designed to produce a further 8% in savings, include getting rid of inflation-linked pay increases and adjusting wages for pilots with 15 years’ seniority who work fewer hours to reflect the hours worked. Incentive payments will be dropped and pilots who lose their licenses will have their incomes cut from 90% to 45% of their salaries.
While ground staff and cabin crews have reached new union agreements, Iberia says, pilots have not. Therefore the new payroll cost-cutting will apply only to pilots.
[photo courtesy oneworld]