Spain: Iberia agrees 2009 pay increases but plans 2010-11 freeze

Spanish airline Iberia agreed a 4% pay rise for its cabin crew in November, following strike action, but is planning pay and recruitment freezes and job losses during 2010-11.

On 22 October, Iberia management announced a set of measures to cut labour costs, as part of a plan to improve its financial situation in the face of falling passenger numbers and losses of more than €165 million in the first half of 2009.